Exam (elaborations)
IGCSE Economics (Edexcel) Definitions
- Course
- Institution
IGCSE Economics (Edexcel) Definitions IGCSE Economics (Edexcel) Definitions IGCSE Economics (Edexcel) Definitions
[Show more]
Content preview
IGCSE Economics (Edexcel) DefinitionsEconomics - ANS The study of how society manages its scare resources to satisfy unlimited wants
Economy - ANS A system that attempt to solve the basic economic problem.
Micro-economics - ANS The study of how households (buyers) and firms (sellers) make decisions
regarding the allocation of limited resources and how they interact in specific markets as individuals
Macro-economics - ANS The branch of economics that examines the behaviour of the whole economy
Scarcity - ANS Society has limited resources and therefore cannot produce enough goods and services to
satisfy everyone's wants.
Opportunity Cost - ANS The next best alternative forgone when an economic decision is made
Wants - ANS Anything you would like irrespective of whether you have the resources to purchase it.
Needs - ANS Basic requirements for human survival
Choice - ANS The selection of appropriate alternatives.
Ceteris Paribus - ANS 'other things being equal' It is used as a reminder that all variables other than the
one(s) being studied are assumed to be constant
Production Possibility Curve - ANS This shows maximum quantities of different combinations of two
products an economy can produce given current resources and the state of technology.
, Exporters - ANS Firms that sell overseas.
Market - ANS A place or situation where buyers and sellers communicate with exchange in mind.
Market Failure - ANS Market failure occurs when freely functioning markets fail to deliver an efficient
allocation of resources. The result is a loss of economic and social welfare.
Price - ANS The amount of money that goods are exchanged for a transaction.
Price Mechanism/Market System - ANS The automatic determination of prices and the allocation of
resources by the operation of markets in the economy.
Subsidy - ANS A grant given to producers, usually to encourage production of a certain good.
Demand - ANS The quantity of a product that consumers are willing and able to purchase at various
prices over a period of time.
Notional Demand - ANS The desire for a product.
Effective Demand - ANS Only when a consumers desire to buy a product is backed up by an ability to pay
for it does demand actually have an effect on the market.
Derived Demand - ANS Demand that arises because there is demand for another good.
Demand Curve - ANS A line or curve drawn on a graph which shows how much of a good will be bought
at different prices.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectjoseph. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79316 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now