Economics Aqa A Level Paper 1 Exam Questions (81 Terms) With Verified Definitions Updated 2024

Production {Ans: a process, or set of processes, that converts inputs into output of goods}Average Cost Formula {Ans: total cost/output}Joint supply {Ans: when one good is produced, another good is also produced from the same raw materials}Normal good {Ans: a good for which the demand increases as income rises and decreases as income falls}Short run {Ans: the time period in which at least one input of production is fixed but other inputs can be changed}entry barrier {Ans: makes it difficult or impossible for new firms to enter a market}Need {Ans: something essential for survival such as food or medical care}total cost {Ans: The whole cost of producing a particular level of output}Decrease in supply {Ans: a leftward shift of the supply curve}Equilibrium price {Ans: the price at which planned demand for a good or service exactly equals planned supply.}Average cost {Ans: total cost of production divided by output}total revenue {Ans: the money a firm receives from selling its output, calculated by multiplying the price by the quantity sold}market equilibrium {Ans: A market is in equilibrium when planned demand equals planned supply and the demand curve crosses the