economics revision ssfsdfsd.,fms.d,f 3.0 / 5 based on 1 rating ? EconomicsASEdexcel Created by: Anjeli JaiswalCreated on: 01-01-13 01:14 PPF This shows the maximum output of an economy producing 2 goods or services when all resources are fully and efficiently used. 1 of 17 Opportunity Cost This is the next best alternative foregone. 2 of 17 Positive Statement This is a statement that can be checked against facts and figures and so confirmed as true or false 3 of 17 Normative Statement This is a value judgement and cannot be tested as true or false. 4 of 17 Specialisation This is when an individual, firm or even a country concentrate on the production of a particular good or service. 5 of 17 Division of Labour This is when a production process is divided into clear separate tasks, where labour is assigned to these tasks. 6 of 17 P.E.D Price Elasticity of Demand This measures the responsiveness of quantity demanded following a change in price 7 of 17 Y.E.D Income Elasticity of Demand This measures the responsiveness of quantity demanded following a change in income 8 of 17 X.E.D Cross Elasticity of Demand This measures the responsiveness of quantity demanded in good B, following the change in price of good A 9 of 17 P.E.S Price Elasticity of Supply This measures the responsiveness of quantity supplied following a change in the price. 10 of 17 Elastic Demand This is when a change in price brings about a more than proportionate change in quantity demanded. 11 of 17 Inelastic Demand This is when a change in price brings about a less than proportionate change in quantity demanded 12 of 17 Derived Demand This is when demand for one good/service comes from the demand for another such as labour. 13 of 17 Composite Demand This is when a good is demanded for more than one purpose 14 of 17 Normal Good This is a good whose demand rises as real income rises, represented by a + YED 15 of 17 Inferior Good This is a good whose demand falls as income real rises, represented by a - YED 16 of 17 Inferior Good This is a good whose demand falls as income real rises, represented by a - YED 17 of 17
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