Cambridge O Level Economics Paper 2

The trade in goods balance is the difference between the value of a country's exports and imports of goods.

<p>Lower input costs (C), Access to larger markets (E)</p> Signup and view all the answers

<p>A demerit good is a good which is considered to be harmful to the individual consumer and society, for example cigarettes or alcohol.</p> Signup and view all the answers

<p>An extension in demand occurs when there is a movement along a demand curve due to a change in the price of the good. An increase in demand occurs when there is a shift in the demand curve due to non-price factors such as changes in income, tastes, or prices of substitute goods.</p> Signup and view all the answers

<p>Commercial banks act as intermediaries between savers and borrowers, and also provide a range of other services such as cheque processing, foreign exchange, and financial advice.</p> Signup and view all the answers

<p>Higher wages in other countries (A), Political instability (D)</p> Signup and view all the answers

<p>Wages are the payments received by workers in return for their labour.</p> Signup and view all the answers

Indonesia is the largest global producer of palm oil.

Costs that change with production volume, like seeds and labor.

The loss of potential gain from conserving forests.

Costs affecting third parties, such as pollution from deforestation.

Fires are used to clear land for palm oil plantations.

Total economic output per person in a country.

Human Development Index ranking, indicating quality of life.

The act of leaving one's country to live in another.

Burning leftover crop residue to improve soil fertility.

The value of one currency for the purpose of conversion to another.

The difference between a country's exports and imports of goods.

International trade without tariffs or restrictions.

Taxes imposed on goods and services rather than on income.

A graphical representation of the relationship between demand and supply.

A measure of how much the quantity demanded changes with price changes.

When money is put into the economy to generate future returns.

Monetary compensation earned by workers for their labor.

The performance of the economy on a large scale, including factors like growth and unemployment.

Economic activities related to travel and tourism.

Costs incurred due to environmental degradation.

Financial support from the government to help farmers.

Goods sold abroad, often raw materials.

A significant disruption in the economy, affecting stability.

Jobs available within a region rather than outside it.

An increase in the production of goods and services in an economy.

The total demand for a product or service in the market.

A tax imposed on imported goods.

The percentage increase in the price level of goods and services over time.

A graph showing the trade-offs between two goods’ production.

Products bought for personal use.

Goods deemed undesirable that can harm consumers.

A rise in quantity demanded due to factors other than price.

Effects of economic activity on the local community.