AQA AS Economics Final Examination
◍ positive statement Answer: An objective statement that can be tested
against facts to be declared either true or false.
◍ normative statement Answer: A subjective opinion, or value
judgement, that cannot be declared either true or false.
◍ Need Answer: something essential for survival such as food or
medical care
◍ Want Answer: something that people desire but that is not necessary
for human survival.
◍ Economic welfare Answer: The economic well-being of an
individual, a group within society, or an economy.
◍ Production Answer: a process, or set of processes, that converts inputs
into output of goods.
◍ Capital good Answer: A good which is used in the production of other
goods or services. Also known as a producer good.
◍ Consumer good Answer: A good which is consumed by individuals or
households to satisfy their needs or wants.
, ◍ factors of production Answer: Inputs the productive process such as
land, labour, capital and enterprise.
◍ Fundamental economic problem Answer: how best to make decisions
about the allocation of scarce resources among competing uses so as to
improve and maximise human happiness and welfare.
◍ Scarcity Answer: results from the fact that people have unlimited
wants but resources to meet these wants are limited. In essence, people
would like to consume more goods and services than the economy is
able to produce with its limited resources.
◍ opportunity cost Answer: the cost of giving up the next best
alternative
◍ Market Answer: A situation where buyers and sellers come together
to engage in trade.
◍ Equilibrium price Answer: the price at which planned demand for a
good or service exactly equals planned supply.
◍ Effective demand Answer: The desire for a good or service backed by
an ability to pay
◍ positive statement Answer: An objective statement that can be tested
against facts to be declared either true or false.
◍ normative statement Answer: A subjective opinion, or value
judgement, that cannot be declared either true or false.
◍ Need Answer: something essential for survival such as food or
medical care
◍ Want Answer: something that people desire but that is not necessary
for human survival.
◍ Economic welfare Answer: The economic well-being of an
individual, a group within society, or an economy.
◍ Production Answer: a process, or set of processes, that converts inputs
into output of goods.
◍ Capital good Answer: A good which is used in the production of other
goods or services. Also known as a producer good.
◍ Consumer good Answer: A good which is consumed by individuals or
households to satisfy their needs or wants.
, ◍ factors of production Answer: Inputs the productive process such as
land, labour, capital and enterprise.
◍ Fundamental economic problem Answer: how best to make decisions
about the allocation of scarce resources among competing uses so as to
improve and maximise human happiness and welfare.
◍ Scarcity Answer: results from the fact that people have unlimited
wants but resources to meet these wants are limited. In essence, people
would like to consume more goods and services than the economy is
able to produce with its limited resources.
◍ opportunity cost Answer: the cost of giving up the next best
alternative
◍ Market Answer: A situation where buyers and sellers come together
to engage in trade.
◍ Equilibrium price Answer: the price at which planned demand for a
good or service exactly equals planned supply.
◍ Effective demand Answer: The desire for a good or service backed by
an ability to pay
