EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
what is GDP an indicator of? - Correct Answers ✅the
standard of living in a country
what is the standard measure of economic growth? - Correct
Answers ✅rate of change of GDP
what is the difference between total and per capita GDP? -
Correct Answers ✅total is the overall GDP for a country
and per capita is total GDP/population
when does GDP per capita grow? - Correct Answers ✅when
national output grows faster than the opoulation
what is the difference between real and nominal GDP? -
Correct Answers ✅real GDP takes into account inflation but
nominal doesn't
what is the difference between volume and value? - Correct
Answers ✅volume is adjusted for inflation
value is monetary value at prices of the day = volume x price
what is gross national income? - Correct Answers ✅GDP
and net overseas interest and dividends
- starting to be used more due to remittances and aid
,EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
what is gross national product? - Correct Answers ✅GDP by
any citizens or property of a country anywher e in the world
how is growth used to compare over time (2)? - Correct
Answers ✅- put figures into context
- make judgements about welfare
what must you use when comparing countries' GDPs and
why? - Correct Answers ✅real GDP per capita as
population growth varies and inflation would effect it
what must you consider when making comparisons in GDP
between countries? - Correct Answers ✅must use per
capita as total doesn't show living standards and could just
increase due to increase in prices
what is PPP and how is it measured? - Correct Answers
✅this is an exchange rate which compares how much a
typical basket of goods costs in one country
why is PPP useful for comparing countries? - Correct
Answers ✅takes into account cost of living
,EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
what is an example of PPP index? - Correct Answers ✅the
big mac index
what are the limitations to using GDP to compare standard of
living (6)? - Correct Answers ✅- inaccuracy of data:
inefficient collecting/calculation, black market, home
produced services, errors in inflation calculation, no transfer
payments
- inequalities: increase in GDP may only benefit wealthy
- quality of g+s: improvement over time not reflected
- comparing currency: converted to US but ppl say u should
use PPP instead
- spending: some doesn't improve living standard but does
GDP e.g. defence
- other factors: like education
how is national happiness measured? - Correct Answers
✅using the measuring national wellbeing report
what are the key questions in the national wellbeing report? -
Correct Answers ✅life satisfaction, anxiety, happiness and
worthwhileness
, EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
how are real incomes and subjective happiness related? -
Correct Answers ✅they are positively related at low
incomes but higher levels of income aren't correlated
what is the name for the term suggesting that those on
higher incomes aren't happier when their incomes increase? -
Correct Answers ✅easterlin paradox
what else does income and happiness depend on other than
each other? - Correct Answers ✅the people around you -
you are happier if you have a higher income than those
around you - linked to social status
what is the difference between inflation, deflation and
disinflation? - Correct Answers ✅inflation: general increase
of prices in economy
deflation: fall of prices
disinflation: reduction in rate of inflation
what are the most well-known indices for calculating rate of
inflation and which is used most? - Correct Answers
✅consumer price index and retail price index, CPI is used
how is the CPI calculated ? - Correct Answers ✅living costs
and food survey is used
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
what is GDP an indicator of? - Correct Answers ✅the
standard of living in a country
what is the standard measure of economic growth? - Correct
Answers ✅rate of change of GDP
what is the difference between total and per capita GDP? -
Correct Answers ✅total is the overall GDP for a country
and per capita is total GDP/population
when does GDP per capita grow? - Correct Answers ✅when
national output grows faster than the opoulation
what is the difference between real and nominal GDP? -
Correct Answers ✅real GDP takes into account inflation but
nominal doesn't
what is the difference between volume and value? - Correct
Answers ✅volume is adjusted for inflation
value is monetary value at prices of the day = volume x price
what is gross national income? - Correct Answers ✅GDP
and net overseas interest and dividends
- starting to be used more due to remittances and aid
,EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
what is gross national product? - Correct Answers ✅GDP by
any citizens or property of a country anywher e in the world
how is growth used to compare over time (2)? - Correct
Answers ✅- put figures into context
- make judgements about welfare
what must you use when comparing countries' GDPs and
why? - Correct Answers ✅real GDP per capita as
population growth varies and inflation would effect it
what must you consider when making comparisons in GDP
between countries? - Correct Answers ✅must use per
capita as total doesn't show living standards and could just
increase due to increase in prices
what is PPP and how is it measured? - Correct Answers
✅this is an exchange rate which compares how much a
typical basket of goods costs in one country
why is PPP useful for comparing countries? - Correct
Answers ✅takes into account cost of living
,EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
what is an example of PPP index? - Correct Answers ✅the
big mac index
what are the limitations to using GDP to compare standard of
living (6)? - Correct Answers ✅- inaccuracy of data:
inefficient collecting/calculation, black market, home
produced services, errors in inflation calculation, no transfer
payments
- inequalities: increase in GDP may only benefit wealthy
- quality of g+s: improvement over time not reflected
- comparing currency: converted to US but ppl say u should
use PPP instead
- spending: some doesn't improve living standard but does
GDP e.g. defence
- other factors: like education
how is national happiness measured? - Correct Answers
✅using the measuring national wellbeing report
what are the key questions in the national wellbeing report? -
Correct Answers ✅life satisfaction, anxiety, happiness and
worthwhileness
, EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025)
how are real incomes and subjective happiness related? -
Correct Answers ✅they are positively related at low
incomes but higher levels of income aren't correlated
what is the name for the term suggesting that those on
higher incomes aren't happier when their incomes increase? -
Correct Answers ✅easterlin paradox
what else does income and happiness depend on other than
each other? - Correct Answers ✅the people around you -
you are happier if you have a higher income than those
around you - linked to social status
what is the difference between inflation, deflation and
disinflation? - Correct Answers ✅inflation: general increase
of prices in economy
deflation: fall of prices
disinflation: reduction in rate of inflation
what are the most well-known indices for calculating rate of
inflation and which is used most? - Correct Answers
✅consumer price index and retail price index, CPI is used
how is the CPI calculated ? - Correct Answers ✅living costs
and food survey is used
