IGCSE Economics Notes

A comprehensive collection of key concepts and definitions in IGCSE Economics to aid in exam preparation.

Opportunity cost is defined as __________.

A cost of choosing one thing over the next best alternative.

The economic problem is the idea that __________.

Resources are scarce and wants are unlimited.

In a __________ market, both producers and consumers determine what and for whom they produce goods.

Free market system

Consumer goods can be divided into durable and __________ consumer goods.

Non-durable

Public goods are offered by the government because __________ is not willing to produce it.

No private firm

__________ income is money generated from assets and wealth without working required.

Unearned

The point of production where total costs equal total revenue is known as the __________.

Break Even point of production

The __________ of scale occur when the average cost of producing a good increases due to inefficiencies.

Diseconomies

A __________ company operates in more than one country with its headquarters in one country.

Multi-national

Demand is the willingness and ability of consumers to __________ goods and services.

Buy

The law of diminishing marginal utility states that the more of a commodity a consumer has, the __________ utility they receive from additional units.

Less

Price elasticity of demand is measured by the equation __________.

Change in quantity demanded/ % Change in price.

The characteristics of perfect competition include homogeneous products, price takers, and __________ entry and exit.

Freedom of

A __________ market is where all firms are productively efficient and operate in an allocatively efficient environment.

Perfect competition

In a monopoly, firms have __________ to entry, imperfect information, and can set prices as they wish.

Barriers

Wage differentials may arise due to factors like abilities, qualifications, and __________.

Job satisfaction