AQA ECONOMICS A LEVEL YEAR 1 - MICROECONOMICS EXAM 2025 WITH 100- CORRECT ANSWERS

AQA ECONOMICS A LEVEL YEAR 1 - MICROECONOMICS
EXAM 2025 WITH 100% CORRECT ANSWERS




Allocative Efficiency - correct answer Occurs when the available economic resources are used to produce the
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combination of goods and services that best matches people's tastes and preferences
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Positive Statements - correct answer A statement of fact that can be tested to see if it is incorrect or correct
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Normative Statements - correct answer A statement that includes a value judgement and cannot be disproved
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just by looking at evidence
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Need - correct answer Something that is essential for human survival e.g. food and water
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Want - correct answer Something that is desirable e.g. fashionable accessories
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Economic Welfare - correct answer The economic well-being of an individual, a group within society, or an
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economy

,Production - correct answer A process, or a set of processes that converts inputs into output of goods
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Capital Goods - correct answer Goods used in the production of other goods or services (also known as a
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producer good) v




Consumer Goods - correct answer A good which is consumed by individuals or households to satisfy their
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needs or wants v v




Factors of Production - correct answer Inputs into the production process
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CELL - the four factors of production - correct answer Capital
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Enterprise

Land v




Labour



Capital - correct answer Equipment used in producing goods and services
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Enterprise - correct answer Refers to the decision makers and the risk takers in the firm
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Labour - correct answer The human input into the production process
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Land - correct answer The actual land and the natural resources in and on it
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Interest - correct answer The reward for capital
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Rent - correct answer The reward for land
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Wages - correct answer The reward for labour
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, Profit - correct answer The reward for enterprise
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Finite Resources - correct answer Resources which are scarce and run out as they are used, such as oil (also
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known as a non-renewable resource) v v v v




Renewable Resources - correct answer Resources which with careful management can be renewed as they are
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used, such as timber
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Fundamental Economic Problem - correct answer How best to make decisions about the allocation of scarce
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resources among competing uses so as to improve and maximise human happiness and welfare
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Fundamental Questions - correct answer What to produce? v v v v v v v




How to produce it?
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Who to produce it for?
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Scarcity - correct answer Results from the fact that wants are unlimited but resources to meet these wants are
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limited



Opportunity Cost - correct answer The next best alternative forgone when making a decision
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Good - correct answer A physical and tangible product
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Service - correct answer Intangible things v v v v v




Economic Good - correct answer A good that has an opportunity costs in consumption because it uses up
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scarce resources v




Free Good - correct answer A good that doesn't have an opportunity cost in consumption because it doesn't
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use up scarce resources
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