Past paper 2022 Flashcards
(12 cards)
What is the formula for revenue?
Revenue = Price × Quantity sold
What is a normal good?
A good for which demand increases as consumer incomes increase.
What is the formula for social benefits?
Social benefits = Private benefits + External benefits
What is a niche market?
A small, specialised segment of the market that caters to specific consumer needs.
Name a disadvantage of division of labour.
Workers may become bored, leading to lower productivity or higher staff turnover.
What is the impact of externalities?
Externalities can lead to market failure if costs or benefits to third parties aren’t considered.
What is elasticity in economics?
It measures how responsive demand or supply is to changes in price or income.
What is a disadvantage to firms of increased competition?
Increased competition can reduce a firm’s market share and profit margins.
What is a takeover?
When one company acquires control of another company.
What is a trade union?
An organisation that represents workers’ interests to employers.
Name one positive and one negative effect of trade unions.
Positive – Can improve wages and working conditions.
Negative – Can lead to strikes and disrupted production.
What are primary sector jobs?
Jobs that involve extracting raw materials, such as farming, mining, and fishing.
