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AQA AS-LEVEL ECONOMICS PAPER 2 EXAM QUESTIONS AND CORRECT
ANSWERS LATEST EDITION 2026
AQA AS-LEVEL ECONOMICS PAPER 2
200 Original Questions with Answers and Rationales
SECTION A: MULTIPLE CHOICE
Questions 1–100
TOPIC 1: MEASUREMENT OF MACROECONOMIC PERFORMANCE
1. What is the primary measure of a country's economic output?
• A) Consumer Price Index
• B) Gross Domestic Product
• C) Balance of Payments
• D) Unemployment rate
Answer: B) Gross Domestic Product
Rationale: GDP measures the total value of goods and services produced in an economy over a
period.
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2. Real GDP differs from nominal GDP because real GDP:
• A) Includes inflation
• B) Adjusts for inflation
• C) Excludes exports
• D) Includes only manufactured goods
Answer: B) Adjusts for inflation
Rationale: Real GDP is adjusted for price changes to show true economic growth.
3. GDP per capita is calculated by:
• A) GDP × population
• B) GDP ÷ population
• C) GDP + population
• D) GDP − population
Answer: B) GDP ÷ population
Rationale: GDP per capita divides total GDP by the population to measure average income.
4. Which of the following is NOT a macroeconomic objective?
• A) Economic growth
• B) Low unemployment
• C) Price stability
• D) Maximising firm profits
Answer: D) Maximising firm profits
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Rationale: Maximising firm profits is a microeconomic objective, not a macroeconomic one.
5. The Consumer Price Index (CPI) measures:
• A) Changes in the cost of living
• B) Changes in GDP
• C) Changes in unemployment
• D) Changes in exports
Answer: A) Changes in the cost of living
Rationale: CPI tracks changes in the prices of a basket of goods and services.
6. Which of the following is included in the CPI basket?
• A) Only food and drink
• B) A representative basket of goods and services
• C) Only luxury goods
• D) Only imported goods
Answer: B) A representative basket of goods and services
Rationale: CPI uses a weighted basket representing typical consumer spending.
7. An index number of 120 in Year 2 (base Year 1 = 100) means:
• A) Prices have fallen by 20%
• B) Prices have risen by 20%
• C) Prices are unchanged
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• D) Prices have risen by 120%
Answer: B) Prices have risen by 20%
Rationale: An index of 120 represents a 20% increase from the base year.
8. Which of the following is a withdrawal from the circular flow of income?
• A) Investment
• B) Government spending
• C) Savings
• D) Exports
Answer: C) Savings
Rationale: Savings are a withdrawal (leakage) from the circular flow.
9. Which of the following is an injection into the circular flow of income?
• A) Taxation
• B) Imports
• C) Savings
• D) Investment
Answer: D) Investment
Rationale: Investment is an injection into the circular flow.
10. The multiplier effect refers to:
• A) The effect of inflation on GDP
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AQA AS-LEVEL ECONOMICS PAPER 2 EXAM QUESTIONS AND CORRECT
ANSWERS LATEST EDITION 2026
AQA AS-LEVEL ECONOMICS PAPER 2
200 Original Questions with Answers and Rationales
SECTION A: MULTIPLE CHOICE
Questions 1–100
TOPIC 1: MEASUREMENT OF MACROECONOMIC PERFORMANCE
1. What is the primary measure of a country's economic output?
• A) Consumer Price Index
• B) Gross Domestic Product
• C) Balance of Payments
• D) Unemployment rate
Answer: B) Gross Domestic Product
Rationale: GDP measures the total value of goods and services produced in an economy over a
period.
1|Page
,Page 2 of 56
2. Real GDP differs from nominal GDP because real GDP:
• A) Includes inflation
• B) Adjusts for inflation
• C) Excludes exports
• D) Includes only manufactured goods
Answer: B) Adjusts for inflation
Rationale: Real GDP is adjusted for price changes to show true economic growth.
3. GDP per capita is calculated by:
• A) GDP × population
• B) GDP ÷ population
• C) GDP + population
• D) GDP − population
Answer: B) GDP ÷ population
Rationale: GDP per capita divides total GDP by the population to measure average income.
4. Which of the following is NOT a macroeconomic objective?
• A) Economic growth
• B) Low unemployment
• C) Price stability
• D) Maximising firm profits
Answer: D) Maximising firm profits
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Rationale: Maximising firm profits is a microeconomic objective, not a macroeconomic one.
5. The Consumer Price Index (CPI) measures:
• A) Changes in the cost of living
• B) Changes in GDP
• C) Changes in unemployment
• D) Changes in exports
Answer: A) Changes in the cost of living
Rationale: CPI tracks changes in the prices of a basket of goods and services.
6. Which of the following is included in the CPI basket?
• A) Only food and drink
• B) A representative basket of goods and services
• C) Only luxury goods
• D) Only imported goods
Answer: B) A representative basket of goods and services
Rationale: CPI uses a weighted basket representing typical consumer spending.
7. An index number of 120 in Year 2 (base Year 1 = 100) means:
• A) Prices have fallen by 20%
• B) Prices have risen by 20%
• C) Prices are unchanged
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• D) Prices have risen by 120%
Answer: B) Prices have risen by 20%
Rationale: An index of 120 represents a 20% increase from the base year.
8. Which of the following is a withdrawal from the circular flow of income?
• A) Investment
• B) Government spending
• C) Savings
• D) Exports
Answer: C) Savings
Rationale: Savings are a withdrawal (leakage) from the circular flow.
9. Which of the following is an injection into the circular flow of income?
• A) Taxation
• B) Imports
• C) Savings
• D) Investment
Answer: D) Investment
Rationale: Investment is an injection into the circular flow.
10. The multiplier effect refers to:
• A) The effect of inflation on GDP
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