PDF Notes: Questionpaper-Paper1-January2023

    Master this deck with 16 terms through effective study methods.

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    What is the name given to a firm that manufactures cars?

    It operates in the secondary sector.

    What is the monthly labour productivity of a firm with 540 workers and 27,000 units output?

    50 units per worker.

    What does division of labour mean?

    It increases efficiency by assigning specific tasks.

    State one factor of production.

    Land, labor, capital, or entrepreneurship.

    Define the term public sector.

    It includes government-owned services and enterprises.

    How do you calculate price elasticity of demand (PED)?

    Use the percentage change in quantity demanded over the percentage change in price.

    What happens to demand when a celebrity endorses a product?

    Demand typically increases due to heightened interest.

    Why might Spice Cottage not aim to maximize profit?

    They may prioritize market share or customer satisfaction.

    Why is knowledge of income elasticity useful for Megabus?

    It helps predict changes in demand based on income fluctuations.

    What type of market is shown in Figure 2?

    It represents an oligopoly.

    What is likely to increase productivity?

    Improvements in irrigation.

    What are barriers to entry?

    Obstacles that make it difficult for new firms to enter a market.

    How do you calculate total costs for a firm?

    Add fixed costs to variable costs multiplied by output.

    What is a disadvantage of using subsidies for the government?

    They can strain public finances.

    Why might Heather decide to keep her business small?

    To maintain control and reduce risk.

    What are economies of scale?

    Cost advantages gained as production increases.