Rapid Recall Questions – Theme 1

Economics

By Satvir Gill 12DDA

 (Nature of Economics) – (1.1)
1. Why is economics considered a social science
2. What is a Law
3. Why in economics are we unable to conduct scientific experiments
4. What is an economic model
5. What are the benefits of an economic model
6. Why is an economic model unrealistic
7. What is Ceteris Paribus
8. What is optimization assumption
9. What is the difference between positive and normative statements
10. Give an example of a positive statement
11. Give an example of a normative statement
12. Define a value judgement
13. What is the basic economic problem
14. Explain the term scarcity in terms of wants and resources
15. The difference between a want and a need
16. Economics is the study of __________________
17. Define an opportunity cost
18. Give an example of an opportunity cost
19. What is an economy
20. What is the non-renewable and renewable resource
21. What are the four main economic resources and explain each one (factors of production)
22. What are the rewards of the factors of production
23. What is a free good
24. Define the following economic goods and fixed capital
25. Importance of opportunity cost to consumers
26. Importance of opportunity cost to producers
27. Importance of opportunity cost to government
28. What are the five uses if PPF (Production Possibility Frontier)
29. Draw an example of an PPF showing the following: -maximum productive potential of an economy
-opportunity cost ( through marginal analysis ) -economic growth and decline -efficiency or inefficiency of
allocation of resources -possible and unobtainable production
30. Difference between a movement and sift along a PPF curve
31. Causes of movement across the PPF curve change
32. Distinction between consumer and capital goods
33. What is specialisation
34. What is division of labour
35. What do Adam Smith findings on division of labour show
36. Advantages and disadvantages of specialisation and division of labour in terms of organising production
37. Advantages and disadvantages of specialisation and division of labour in terms of trade
38. What are the four functions of money
39. What is an economy
40. What is a free market economy
41. What is a mixed market economy
42. What is a command economy
43. What did Adam Smith and Fredrick Hayek believe about economies
44. What does Karl Marx believe about economies
45. Examples of all 3 types of economies
46. Advantages and disadvantages of all these economies
47. What is a governments role in an mixed economy

How markets work - (1.2)

1. What is the Neoclassical Economic theory
2. What do consumers aim to maximise
3. What do firms aim to maximise
4. What do governments aim to maximise
5. Explain marginal utility and the law of diminishing utility
6. Diminishing marginal utility on a demand curve
7. What is demand
8. Distinction between movement and shift of demand curve
9. Factors that shift a demand curve
10. What is PED
11. Formula for PED and % change
12. Explain the definition of elastic and inelastic with diagrams
13. Reasons for elasticity and inelasticity
14. Examples of inelastic and elastic products
15. What should a firm do with price with inelastic + elastic
16. What is YED
17. Formula for YED
18. Examples of Income inelastic and elastic products
19. Reasons for elasticity and inelasticity
20. What does a (+) and (-) show in terms of YED
21. Define an inferior, normal and luxury good with demand curve
22. Define elastic and inelastic in terms of YED
23. Define XED
24. Formula for XED
25. Examples of inelastic and elastic products
26. Reasons for elasticity and inelasticity
27. What does a (+) and (-) show in terms of XED
28. Show unitary, perfectively and relatively elastic, perfectively and relatively inelastic on a graph in terms of
PED, YED, XED with numerical values
29. What is Supply
30. What is an extension and contraction in supply
31. Name 6 different reasons for a shift in supply
32. What is price elasticity of supply
33. Numerical values for elasticity
34. Factors of elasticity of supply
35. Formula for PES
36. Difference between short run and long run in economics and its significance for elasticity of supply
37.