IGCSE Economics by Joe Rolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn End of Year Revision en-us 2021-04-20 00:50:17 UTC 2023-04-07 13:26:19 UTC hello@padlet.com https://padlet.net/icons/png/1f4b0.png 1. Define the BASIC ECONOMIC PROBLEM. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435962808 The basic economic problem is that humans have unlimited needs and wants, but earths has limited resources, this problem leads to scarcity. Unlimited wants and needs + limited resources = scarcity]]> 2021-04-20 02:24:43 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435962808 2. Explain the difference between GOODS & SERVICES with examples. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435963928 Goods are material items that are ready for purchase for a certain price (tangible items)
Services are amenities or facilities provided by the seller (intangible items)
example:
good: car
service: car dealer ]]> 2021-04-20 02:25:08 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435963928 3. List the Four Factors of Production. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435965253 Land: The natural resources required in the production, such as water, coal, wood and other natural products
Labour: The human resource required in the production process, skilled and unskilled labour
Capital: The machinery, tools and equipment required during the production process
Entrepreneurship: The skills a business person requires to combine and manage the other 3 factors for the production]]> 2021-04-20 02:25:40 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435965253 4. Explain the concept of OCCUPATIONAL MOBILITY MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435968262 Occupational mobility refers to the ease with which a person is able to change between jobs. 

For example, an accountant and a computer programmer can be switch as it is highly mobile.
]]> 2021-04-20 02:26:53 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435968262 5. Define and give an example of OPPORTUNITY COST MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435969436 The cost of next best alternative forgone. 

For example, you have a decision between studying or going to the cinema, each as its own benefits and sacrifices as the person needs to choose the best option. ]]> 2021-04-20 02:27:23 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435969436 6. Calculate the opportunity cost to the farmer of producing 1 unit of wheat. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435971680 2021-04-20 02:28:13 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435971680 7. Label points E and F on the PPC MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435974057 Label E is a point that production cannot reach. 
Label F is a point that show some of the production are not used. ]]> 2021-04-20 02:29:09 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435974057 8. With reference to the PPC diagram, explain how GOVERNMENT SUBSIDIES may have an impact on levels of production. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435975556 2021-04-20 02:29:43 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435975556 9. With reference to the PPC Diagram, explain the term MOVEMENT. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435978680 A movement along a PPC results in an opportunity cost. This means that if the society wants to produce more B products, the amount of D products will decrease. ]]> 2021-04-20 02:30:53 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435978680 10. What does a production possibility curve diagram show? MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435980635 The production possibility curve (PPC) represents the maximum and minimum combination of goods and services which can be produced in an economy. ]]> 2021-04-20 02:31:36 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435980635 MC 1 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435985915 My answer is A]]> 2021-04-20 02:33:34 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435985915 MC 2 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435987948 A]]> 2021-04-20 02:34:18 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435987948 MC 3 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435989641 Answer = C]]> 2021-04-20 02:34:56 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435989641 MC 4 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435991264 Answer = D]]> 2021-04-20 02:35:26 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435991264 MC 5 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435991982 Answer = B]]> 2021-04-20 02:35:42 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435991982 MC 6 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435993088 Answer = C]]> 2021-04-20 02:36:08 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435993088 MC 7 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435993975 Answer = A]]> 2021-04-20 02:36:25 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435993975 MC 8 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435995923 2021-04-20 02:37:10 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435995923 MC 9 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435996892 B]]> 2021-04-20 02:37:32 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435996892 MC 10 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435998194 Answer= A]]> 2021-04-20 02:38:04 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435998194 1. With reference to the diagram, explain the term MARKET EQUILIBRIUM. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435999336 Market equilibrium is the point that surplus or shortage will not occur.]]> 2021-04-20 02:38:33 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1435999336 2. Define the term DEMAND. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436001535 Demand refers to a consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service.]]> 2021-04-20 02:39:27 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436001535 3. Give an example of SUBSTITUTES for a product of your choice. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436002597 Pepsi is a substitute for Coca Cola]]> 2021-04-20 02:39:54 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436002597 4. With reference to the diagram, give THREE examples of non-price factors. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436004148 rise in customer's income
good promotion.]]> 2021-04-20 02:40:32 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436004148 5. With reference to the diagram, explain how an INCREASE IN SUPPLY is shown. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436006341 There's an increase in supply because the curve shift to right from S1 to S2, now the quantity supplied is at a higher amount which is moved right at the same price level. This indicates that the supply is more comparing to before at the same given price.]]> 2021-04-20 02:41:19 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436006341 6. With reference to the diagram, explain ONE REASON for a reduction in supply levels. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436007845 The curve is shifts. Higher cost spending on the materials that use to produce the good.]]> 2021-04-20 02:41:57 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436007845 1. List the Four Functions of Money. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436011208 1. medium of exchange
2. measure of value
3. store of value
4. standard of deferred payment]]> 2021-04-20 02:43:14 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436011208 2. Explain why Governments do not allow the Central Bank to print more money in order to reduce poverty. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436011925 money must be limited in supply in order to keep its value. 

]]> 2021-04-20 02:43:32 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436011925 3. Define the term DOUBLE COINCIDENCE OF WANTS, give an example of how the bartering system was ineffective. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436013433 A double coincidence of wants is when two people must both want what the other party is offering. The bartering system is the act of swapping items in exchange for the other through a process of bargaining and negotiation. The disadvantage of using the bartering system is that, there may not always be a double coincidence of wants, therefore, both parties or one party may not get what they wanted. ]]> 2021-04-20 02:44:10 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436013433 Explain TWO INFLUENCES of HOUSEHOLD SAVING (other than income). MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436015622 Inflation, deflation.

Interest rates.]]> 2021-04-20 02:45:04 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436015622 4. Explain TWO NON-WAGE FACTORS which affect workers' decision of which industry to work in. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436021997 Holiday 
Security ]]> 2021-04-20 02:47:40 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436021997 5. Define NATIONAL MINIUM WAGE MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436023526 The national minimum wage refers to the countries lowest wage per hour that a worker may be paid]]> 2021-04-20 02:48:17 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436023526 6. How might Government Legislation be implemented to INCREASE LABOUR SUPPLY? MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436024107 The government could set a higher national minimum wage, when wages increase the supply of labour increases as well.]]> 2021-04-20 02:48:32 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436024107 7. What might cause a PPC to shift to the left? - LOUISE MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436059541 The PPC curve will shift to the left when production capacity decreases because of less access, change in seasons/weather patterns, and no improvement in technology. ]]> 2021-04-20 03:03:24 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436059541 7. With reference to the diagram explain the impact of WAGES on LABOUR SUPPLIED MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436066024 If the wage rate in an industry increases from W1 to W2, the number of people willing to work will increase from N1 to N2 because more worker are attracted by high wages. ]]> 2021-04-20 03:06:28 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436066024 8. READ THE CASE STUDY - Give TWO REASONS why there is a global shortage of Doctors and Nurses MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436079376 There are global shortage of Doctors and Nurses due to many Doctors and Nurses migrate overseas to work.
There is a period of time needed to train a nurse and a doctor. ]]> 2021-04-20 03:12:13 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436079376 9. READ THE CASE STUDY - Analyse how countries can attract individuals to professions in which they have a shortage of workers. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436082635 2021-04-20 03:13:45 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436082635 MC 11 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436085743 Answer = B]]> 2021-04-20 03:15:09 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436085743 MC 12 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436087081 C]]> 2021-04-20 03:15:44 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436087081 MC 13 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436087886 Answer = D]]> 2021-04-20 03:16:05 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436087886 MC 14 MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436090103 B]]> 2021-04-20 03:17:07 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1436090103 Define the term 'SUBSIDY' MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457295772 A subsidy is a financial incentive offered by the government to help individual firms or businesses. ]]> 2021-04-26 00:36:23 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457295772 Give an example of how Government Objectives can be implemented by a supplier to gain subsidies. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457296263 Increase employment rates
Produce public goods]]> 2021-04-26 00:36:36 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457296263 What does a PPC show? MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457299739 It shows the maximum combination of goods and services which can be produced in an economy. ]]> 2021-04-26 00:37:58 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457299739 Explain how National Minimum Wages might affect Employment levels. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457300457 The national minimum wage could affect employment levels in both ways. When there is an increase in NMW or that the NMW is high, the employment levels will be low because the firm has to pay more money per person than before, making it harder for the firm to employ more people as they have to pay more. Vice versa, a decrease in NMW will raise employment levels.]]> 2021-04-26 00:38:16 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457300457 Give a definition of "EXTERNAL COSTS" MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457339174 An external cost is the cost incurred by an individual, firm or community as a result of an economic transaction which they are not directly involved in.]]> 2021-04-26 00:54:15 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457339174 Explain the term PRICE ELASTICITY OF DEMAND and give an example of a Product with has Price Elasticity of Demand. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457340655 Price elasticity of demand is how the demand response when there is a change in price. price elastic, means the demand response hugely when there are a little change  in price, so the change of % in price is smaller than the change of % in demand. price inelastic demand means  the change of % in price is larger than the change of % in demand. 
Product with price elastic demand-banana]]> 2021-04-26 00:54:48 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457340655 How might EXTERNAL FACTORS such as the WEATHER IMPACT DEMAND for products - Give examples. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457347578 For example, if today is raining, the demand of umbrella will increase. 

Seasons will also affect demand. When its summer, the demand for ice creams and beach resorts will increase as more people eat ice cream during summer rather than winter. ]]> 2021-04-26 00:57:25 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457347578 Define DIVISION OF LABOUR. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457350486 When workers become experts in a particular production process]]> 2021-04-26 00:58:36 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457350486 Define the LAW OF SUPPLY. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457352500 The law of supply states that when a price of a good or service increases, the quantity supplied will also increase. When the price decreases, the quantity supplied will also decrease.]]> 2021-04-26 00:59:25 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457352500 Define the term SOCIAL COST. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457354533 Social costs are the true (or full) costs of consumption or production to society
 as a whole ]]> 2021-04-26 01:00:08 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457354533 Explain the OPPORTUNITY COST to the Government of allocating financial resources to building a new school. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457355015 The opportunity cost could be using the available financial resources to build a new hospital to improve the healthcare system. This is a opportunity cost because money is scarce and that if you spend the limited money to build a new school, you give up the chance to use the money and build a new hospital. (Basic Economic Problem)]]> 2021-04-26 01:00:20 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457355015 List TWO WAGE FACTORS influencing levels of pay. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457377199 Performance-related pay and bonuses

Ability to pay --> amount of sales, tax, savings, cost of training, etc.
Productivity --> performance, directly related to quality and sales.]]> 2021-04-26 01:09:36 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457377199 Explain how INTEREST RATES can impact household saving. MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457380956 Higher interest rates encourage households to save more, since there is more reward for saving, and they could get more unearned income from the higher interest rate. When there is a lower interest rate, households might decrease their savings and increase their spending/borrowing since the cost of borrowing also decreases.]]> 2021-04-26 01:11:17 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457380956 How might EXTERNAL FACTORS such as WEATHER PATTERNS (SEASONAL CHANGES) impact SUPPLY? (production) MisterRolfe https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457420625 Weather patterns or seasonal changes may affect supply. For example, blizzards, snow and foggy weather during winter seasons may slow down the speed of supply, impacting and lowering down the quantity supplied, which may raise the demand if the product is very needed. 

Example: lychees. Lychees can only be grown under cold temperatures (35–45 oF) for 100 hours. Then they will bloom in summer. This type of fruit may not be available at all times.]]> 2021-04-26 01:27:55 UTC https://padlet.com/MisterRolfe/hd487uz8xt81vfzn/wish/1457420625