AS Economics: Edexcel

Unit 1

Name: ________________________ Date:_____________

1. Scarcity is ____________________________________________________________

2. Micro Economics is ____________________________________________________

3. Macro Economics is ____________________________________________________

4. PPF is _______________________________________________________________

_____________________________________________________________________

5. Opportunity Cost is:

_____________________________

______________________________

E.g.__________________________

______________________________

6. - An example of Consumer good: _____

- An example of Capital good: ______
- B is having Better_________________
than A in the SR but not in the LR.
- A and B are _______________________
- C is _____________________________
- D is _____________________________

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 7. Demand is __________________________________________________________________

8. Increase in price will cause:

_________________ in demand.

9. Increase in fashion will cause

_________________in demand.

10. Supply is ___________________________________________________________________

11. Decrease in price will cause:

_________________ in Supply.

12. Increase in NMW will cause

_________________in Supply

13. Two factors affecting supply: ___________________________________________________

14. Two factors affecting shift in demand: ____________________________________________

15. Price and demand has _________________ relation unlike price and supply having ________

16. Equilibrium is ________________________________________________________________

17. Show the effect on equilibrium in the following box if:

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 18. Ped is_______________________________________________________________________

19. Yed is (Formula only)__________________________________________________________

20. Xed is ______________________________________________________________________

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 21. Pes is_______________________________________________________________________

22. An Example of Positive Statement: _______________________________________________

___________________________________________________________________________

23. Normative statements are______________________________________________________

___________________________________________________________________________

24. Consumer Surplus is __________________________________________________________

___________________________________________________________________________

25. Draw a diagram and show the effect

On the producer’s surplus if consumer’s
Income increases.
(Assume Normal good)

___________________________________

___________________________________

___________________________________

26. If there is a close substitute available then the Ped of the product will be________________

27. If a product is a need, Ped will be ________________________________________________

28. If a product is an addiction, Ped will be ___________________________________________

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 29. If a product is a natural good, Pes will be __________________________________________

30. If a Product is a Manufacturing good, Pes will be ____________________________________

31. If a product is a luxury good, Yed will be __________________________________________

32. If a product is an essential Good, YED will be _______________________________________

33. If Yed is -0.83, it means that ____________________________________________________

34. If Pes is 3.22, it means that _____________________________________________________

35. If Xed is 3.84, it means that _____________________________________________________

36. If Xed is 0.32, it means that _____________________________________________________

37. If Xed is -1.32, it means that ____________________________________________________

38. If Ped is -1.86, it means that ____________________________________________________

39. If Ped is -0.23, it means that ____________________________________________________

40. An example for XED being 3.26 is ________________________________________________

41. An example for PES being 0.22 is ________________________________________________

42. Two examples of command economy: ____________________________________________

43. Two examples of Mixed economy: _______________________________________________

44. Two Advantages of Free Market Economy: ________________________________________

___________________________________________________________________________

45. Two Disadvantages of Capital economy: __________________________________________

___________________________________________________________________________

46. Division of Labour is __________________________________________________________

___________________________________________________________________________

47. Two positives of specialisation :_________________________________________________

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 48. Two Negatives of Specialisation: ________________________________________________

___________________________________________________________________________

49. An Example of Derived demand is _______________________________________________

50. Joint demand is ______________________________________________________________

51. Competitive demand is ________________________________________________________

52. Name four factors of production; ________________________________________________

___________________________________________________________________________

53. Land means _________________________________________________________________

54. Capital gets _______________________________________________________ in return.

55. An example of an Ad-valorem tax is ______________________________________________

56. Draw incidence of tax and (57)subsidy in the following box, also shade incidence on
consumers and Producers:

57. Ped is_______________________________________________________________________

58. If product is inelastic, rise in price will ________________________ producer’s Revenue.

59. If product is elastic, fall in price will __________________________ producer’s Revenue.

60. Renewable Resources are _____________________________________________________

___________________________________________________________________________

61. An example for Non Renewable resource is _______________________________________

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 62. Market failure is _____________________________________________________________

___________________________________________________________________________

63. Name any four causes of Market failure __________________________________________

___________________________________________________________________________

___________________________________________________________________________

64. Externality means ____________________________________________________________

65. Positive externality means ________________________________ when________________

66. An Example of Negative externality from production: ________________________________

67. An example of Positive externality from Production: ________________________________

68. An Example of Positive externality from consumption: _______________________________

69. MSC>MPC means ____________________________________________________________

70. Free market equilibrium is when ________________________________ and social optimum

Equilibrium is when___________________________________________________________

71. Demerit goods are ____________________________________________________________

_____________________________________________for example_____________________

72. Merit Goods are ______________________________________________________________

____________________________________________for example _____________________

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 73. Draw a diagram for Merit good (+ve externality )and Demerit good ( –Ve externality)also
shade welfare loss/gain:

74. Name three functions of Price mechanism: ________________________________________

___________________________________________________________________________

75. Name three types of government intervention to reduce pollution: ____________________

___________________________________________________________________________

___________________________________________________________________________

76. Evaluate following types of government intervention to reduce smoking:

Persuasion: _________________________________________________________________

Smoking Ban: ________________________________________________________________

High taxation: _______________________________________________________________

77. Name three measures to promote consumption of merit goods: _______________________

___________________________________________________________________________

___________________________________________________________________________

78. Free Rider problem means _____________________________________________________

___________________________________________________________________________

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 79. Asymmetric information means _________________________________________________

___________________________________________________________________________

80. An example when Buyer knows more than seller ___________________________________

81. An Example when seller knows more than Buyer ___________________________________

82. Occupational Immobility is ____________________________________________________

83. Two causes of geographical Immobility ___________________________________________

___________________________________________________________________________

84. How does immobility of labour cause market failure? __ _____________________________

___________________________________________________________________________

85. Two measure each to improve geographical and occupational Immobility : ______________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

86. Unstable commodity market is __________________________________________________

__________________________________________________________________________

87. Two Measures to correct instability are: _________________________________________

__________________________________________________________________________

88. Draw diagram for Minimum price to Producers and Maximum Price to Consumers:

89.
90.
91.
92.
93.
94.
95.

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89. Buffer stock means _______________________________________________________________

__________________________________________________________________________________

90. Harvest paradox is _______________________________________________________________

__________________________________________________________________________________

91. Government Failure is when _______________________________________________________

__________________________________________________________________________________

92. Three causes of Government Failure: ________________________________________________

__________________________________________________________________________________

93. An Example of Government Failure due to Time Lag: ___________________________________

__________________________________________________________________________________

__________________________________________________________________________________

94. An Example of Government Failure due to Admin failure: ________________________________

__________________________________________________________________________________

__________________________________________________________________________________

95. An Example of Government Failure due to External shock: _______________________________

__________________________________________________________________________________

__________________________________________________________________________________

96. An Example of Government Failure due to Market distortion: ____________________________

__________________________________________________________________________________

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__________________________________________________________________________________

__________________________________________________________________________________

97. An Example of Government Failure due to Lack of Information:___________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

98. Public Goods are _________________________________________________________________

__________________________________________________________________________________

99. Two Examples of Quasi Public Goods: ________________________________________________

100. Three factors affecting demand for Labour: __________________________________________

__________________________________________________________________________________

101. Three factors affecting supply of labour: _________________________ ___________________

__________________________________________________________________________________

102. Welfare loss is when ______________________ Welfare gain is when_____________________

Basic Evaluation- A MAGIC STEP (Explain and provide an Example for each)

103. A: __________________________________________________________________________

_________________________________________________________________________________

104. M: __________________________________________________________________________

_________________________________________________________________________________

105. A: ___________________________________________________________________________

_________________________________________________________________________________

106. G: __________________________________________________________________________

_________________________________________________________________________________

107. I: __________________________________________________________________________

_________________________________________________________________________________

108. C: __________________________________________________________________________

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_________________________________________________________________________________

109. S: ____________________________________________________________________________

__________________________________________________________________________________

110. T: ____________________________________________________________________________

__________________________________________________________________________________

111. E: ____________________________________________________________________________

__________________________________________________________________________________

112. P: ____________________________________________________________________________

__________________________________________________________________________________

WELL DONE (Unit 1 is over)

Student’s Own Notes: _______________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

__________________________________________________________________________________

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__________________________________________________________________________________

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