Cambridge International as and a level Economics Ebook

1
Which two countries does the article suggest 
currently have the greatest infl uence on the world 
economy?
2
What do you think is meant by bad weather 
disrupting ‘economic activity’?
3
Can you name three stock markets?
4
Explain the eff ect a rise in interest rates may have on 
the construction industry.
5
Does the article suggest that expectations infl uence 
economic behaviour? Explain your answer.
6
Note down three economic terms from the article 
you do not currently understand. Using this book 
and the glossary in the student CD, check on their 
meaning.
4
Cambridge International AS and A Level Economics

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It is important that you feel confi dent in handling 
data – these simple skills will help you. You will also gain 
confi dence as you become more familiar with economic 
data and complete the various self-assessment tasks in 
each chapter.
Economic data are of two main types.
1
Time-series data:
 
As the name suggests, the same 
information is recorded over a period of time, for example 
a period of years, or months in a year, days in a week and 
so on.
2
Cross-sectional data:
 
The easiest way to imagine this type 
of data is in terms of a ‘snapshot’, i.e., a picture taken at a 
given time.
Another important introductory point concerns the nature 
of the data itself. Again, two types can be recognised:
1
Discrete data:
 
The simplest way to imagine this is in terms 
of values which are shown as whole numbers, e.g., number 
of people or number of cars. In this case, there is a distinct 
jump from one value to another. There cannot be, for 
example, 2.6 cars.