CramPuppy - Free Revision Notes » Igcse » Economics
2: Scarcity, Choice and Opportunity Cost
3: Resources: factors of production (FOP) or Inputs
4: Needs and Wants
5: Consumer goods
6: Capital goods
7: Factors of Production
8: The Economic Problem
9: Wealth
10: Capital
11: Depreciation, Investment, Gross investment, Net investment and Entrepreneur defined
12: Economic System
13: Command Economy
14: Mixed Economy
15: Public Sector
16: Private Sector
17: Market Definitions
18: Specialization
19: Division of Labour
20: Demand
21: The Demand Curve
22: Types of Goods affecting Demand
23: Conditions or factors that influence supply
24: Movements Along the Supply curve
25: Monopolies
Page 1 of 2
[1] [2]
Economics Free Revision Notes
Trade Union gets the following stuff for its workers:
Better Pay
Better Working conditions
Demands for bonuses if the company makes profits
Redundancy pay
Protection from unfair dismissal
2: Scarcity, Choice and Opportunity Cost
Scarcity: limited resources required to satisfy our (human) wants. Resources are insufficient in supply
Choice: choose between different alternatives/possibilities
Opportunity cost: the
3: Resources: factors of production (FOP) or Inputs
Labour
- Capital
- Enterprise
Land: the land, all that is underneath, and all that
4: Needs and Wants
The goods and services that we needs are things necessary for survival.
Goods and services that we WANT may bring pleasure but they are not necessary for us to survive.
5: Consumer goods
Satisfies people's WANTS directly
- Some are single-use that give immediate satisfaction e.g. food, cosmetics
-
6: Capital goods
Do not satisfy our NEEDS directly, but help in the production of other goods and services
- Capital goods are man-made
- &n
7: Factors of Production
Economic Resource (input) | Reward/Income of
8: The Economic Problem
Unlimited consumer wants are greater than the quantity of FOP available to produce goods and services goods + services are scarce consumers cannot satisfy all their wants
9: Wealth
Social wealth
- Assets owned by the gov. for the benefit of the general public (e.g. schools, weapons, roads, hospitals, etc.)
Private wealth
-&nb
10: Capital
Fixed capital
- the
amount of fixed capital will not change with the amount of output (i.e.
a machine will not change if it produces more. One mac
11: Depreciation, Investment, Gross investment, Net investment and Entrepreneur defined
Depreciation: when the value of an asset goes down with constant use, because of wearing/tearing
Investment: the getting of more capital goods, an increase in number
Gross investment: the value of the
12: Economic System
Each society has 3 questions to answer (the basic economic questions):
What?
&n
13: Command Economy
Under this system, planning committees are appointed and they provide the answers to the three basic economic questions
A
most import
14: Mixed Economy
No
country is either a Command Economy or a Market Economy. They are all a
mixed economy and have a joint sector so they include features of both
the private sector (Market Economy) and the public s
15: Public Sector
Public Sector:
- is owned and controlled by the government
- run along similar lines as a co
16: Private Sector
Private Sector:
- is owned and controlled by private individuals or groups of private individuals
-
17: Market Definitions
Private cost: the cost for an individual to get a good or service
Private benefit: the benefit of a good or service you bought
Social benefit: the way the production of a good or its consumption affec
18: Specialization
n some areas of the market, specialization
would be a bad idea as it leads to mass production and the specific
good or service does not have a mass market. Division of labour is
mostly suited for indu
19: Division of Labour
Advantages:
- More
goods and services can be produced because workers become specialists
in the jobs they do. Repeating the same operation or task
20: Demand
Demand:
- What you want
- Ability to buy it because have purchasing power (money)
- &nb
21: The Demand Curve
The demand curve sloped downward from left to right.
The slope is negative.
The demand slope curves downward which shows that the lower the price, the more people buy OTHER THINGS REMAINING THE SAME.
22: Types of Goods affecting Demand
Substitute goods: goods that satisfy the same want, one good therefore can be used in place of another
Complementary goods:
jointly demanded goods (you need it to do something else e.g. you need
a PEN
23: Conditions or factors that influence supply
- Number of firms in the industry
? Firms make up an industry
?
24: Movements Along the Supply curve
There are two types of movements:
? Extension in supply
? Contraction in supply
Extension of Supp
25: Monopolies
Monopoly: It exists when there is a sole supplier of a good or service.
How monopolies are created
1. By
law: Government can grant monopoly powers to a fir
Page 1 of 2
[1] [2]
