Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Edexcel GCSE Economics > Paper 1 > Flashcards

Paper 1 Flashcards

1
Q

Definition of Opportunity Cost

A

Cost of the next best alternative given up when making a choice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Definition of Expenditure

A

Spending by a government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a PPC?

A

A line that shows the different combinations of 2 goods an economy can produce if all resources are used up.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Definition of capital goods

A

Those purchased by a firm and used to make other goods i.e tools

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Definition of Consumer goods

A

those purchased by a household i.e food

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Definition of Economic Growth

A

increase in level of output by a nation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Causes of economic growth (4 causes)

A

New technology

Improved efficiency

Education and training

New resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Reasons consumers don’t always maximize their benefits (3 reasons)

A
  • Can’t calculate the benefits of consuming a product
  • Buying habits
  • Influences of others behavior
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Reasons why producers don’t always maximize profit (3 reasons)

A
  • Behavior of people in the business as not all decisions are made by the owner
  • Alternative business objectives ie customer care
  • Some commercial enterprises operate as charities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Definition of demand

A

amount of a good people are willing and able to buy at a given price and time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Definition of supply

A

amount that producers are willing and able to offer at a given price and time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Definition of equilibrium price

A

price at which supply and demand are equal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a market clearing price

A

The equilibrium price as the amount supplied in the market= the amount demanded so all products are bought up by customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define total revenue

A

amount of money generated from a sale of a product (quantity x price)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define PED

A

responsiveness of demand to a change in price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define Inelastic demand

A

Change in price results in a smaller change in quantity demanded

17
Q

Define Elastic demand

A

change in price results in a greater change in quantity demanded

18
Q

PED <1

19
Q

PED >1

20
Q

PED= 0 or infinity

A

perfectly elastic

21
Q

PED= -1

A

unitary elastic

22
Q

Factors effecting PED (4)

A
  • Substitutes
  • Degree of necessity
  • Proportion of income
  • time
23
Q

Definition of PES

A

responsiveness of supply to change in price

24
Q

Factors affecting PES (4)

A
  • Factors of production
  • Availability of stock
  • spare capacity
  • time
25
Q

Definition of income elasticity of demand

A

Responsiveness of demand to a change in income

26
Q

Formula of income elasticity of demand

A

%change in quantity demand/ % change in income

Edexcel GCSE Economics (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions