Economics AQA AS Level: Micro Keywords. Latest 2022.

Economic Activity - Ans-The combination of resources to produce an output of goods or services Resources ( = factors of production) - Ans-Inputs to the production process: land, labour, capital and enterprise Land - A ...

Economic Activity - Ans-The combination of resources to produce an output of goods or services Resources ( = factors of production) - Ans-Inputs to the production process: land, labour, capital and enterprise Land - Ans-Resources found in the natural environment Labour - Ans-Human inputs to the production process Capital - Ans-Man-made resources Enterprise - Ans-The skill of bringing together other factors of production, spotting gaps in markets and taking risk Scarcity - Ans-Man's unlimited wants and needs in relation to finite resources Production possibility frontier - Ans-A graphical representation of the maximum attainable output from a given stock of resources Opportunity cost - Ans-The cost of making a choice expressed in terms of the next best alternative foregone Value judgement - Ans-An expression of opinion Positive statement - Ans-A statement of fact or testable hypothesisNormative statement - Ans-A value judgement or expression of opinion Demand - Ans-How much of a good consumers are willing and able to buy at different prices over a given time period Price elasticity of demand (PED) - Ans-The responsiveness of demand, in percentage terms, to a change in price (PED = % change in demand / % change in price) Income elasticity of demand (YED) - Ans-The responsiveness of demand, in percentage terms, to a change in income (YED = % change in demand / % change in income) Cross-price elasticity of demand (XED) - Ans-The responsiveness of demand, in percentage terms, to the change in price of another good (XED = % change in demand for Good A / % change in price of Good B) Supply - Ans-The amount of goods that firms are willing and able to supply at different prices in a given time period Price elasticity of supply - Ans-The responsiveness of supply, in percentage terms, to a change in price (PES = % change in supply / % change in price) Normal goods - Ans-Goods who