AQA ECONOMICS EVALUATION EXAM 2025/2026
QUESTIONS AND SOLUTIONS MARKED A+
✔✔Demand Pull Inflation - ✔✔Where aggregate demand exceeds aggregate supply
leading to an increase in the level of prices.
✔✔Demand-side Fiscal Policy - ✔✔Changes in the level or structure of government
spending and taxation aimed at influencing one or more of the components of
aggregate demand.
✔✔Demerit Good - ✔✔A good that would be over-consumed in a free market, as it
brings less overall benefit to consumers than they realise, eg tobacco.
✔✔Deregulation - ✔✔The process of removing government controls from markets.
✔✔Derived Demand - ✔✔When the demand for one good or service comes from the
demand for another good or service . The demand for cars stimulates the demand for
steel, therefore the demand for steel is derived demand.
✔✔Discouraged Workers - ✔✔Workers who leave the labour market because despite
numerous attempts they are unable to find a job.
✔✔Discretionary Fiscal Policy - ✔✔The deliberate manipulation of government
spending and taxation to influence the economy.
✔✔Diseconomies of Scale - ✔✔Where an increase in the scale of production leads to
increases in average total costs for firms.
✔✔Disequilibrium - ✔✔A situation within the market where supply does not equal
demand.
✔✔Disposable Income - ✔✔Income available to households after the payment of
income tax and national insurance contribution.
✔✔Division of Labour - ✔✔Breaking the production process down into a sequence of
tasks, with workers assigned to particular tasks.
✔✔Economic Goods - ✔✔Good that are scarce and therefore have an opportunity cost.
✔✔Economic Growth - ✔✔The capacity of the economy to produce more goods and
services over time.
✔✔Economic Indicators - ✔✔Economic statistics that provide information about the
expansions and contractions of business cycles.
, ✔✔Economic Models - ✔✔These are used to show the essential characteristics of
complicated economic conditions in order to analyse them and predict the result of
changes of variables.
✔✔Economic Welfare - ✔✔Refers to the benefit or satisfaction an individual or society
gets from the allocation of resources. We can attempt to measure the welfare of
individuals but really we want to understand the overall effects on society as a whole.
this will include how well off people feel, how much money they have but also might
consider other factors such as their environment and standard of living - their physical
well-being, although this is hard to define.
✔✔Economies of Scale - ✔✔Where an increase in the scale of production leads to
reductions in the average total cost for firms.
✔✔Effective Demand - ✔✔Demand supported by the ability to pay for a good or service.
✔✔Employment - ✔✔Where labour is actively engaged in a productive activity usually in
exchange for payments such as wages.
✔✔Equilibrium - ✔✔The price at which demand is equal to supply and there is no
tendency for change.
✔✔Excess Demand - ✔✔When demand is greater than supply at a given price.
✔✔Excess Supply - ✔✔When supply at a particular price is greater than demand, this
should signal to producers to lower prices.
✔✔Exchange Rate - ✔✔The price at which one currency, e.g. the pound, exchanges for
another e.g the US dollar.
✔✔Expansionary Fiscal Policy - ✔✔Increasing levels of government spending relative
to tax revenue. appropriate to stimulating aggregate demand during a downturn in
economic activity.
✔✔Exporting - ✔✔The sale of goods or services to a foreign country - generates
income for the home country.
✔✔Exports - ✔✔Goods or services sold abroad.
✔✔Extension in Supply - ✔✔When there is an increase in supply because the market
price has risen.
✔✔Extensions in Demand - ✔✔Increases in demand caused by changes (falls) in price.
QUESTIONS AND SOLUTIONS MARKED A+
✔✔Demand Pull Inflation - ✔✔Where aggregate demand exceeds aggregate supply
leading to an increase in the level of prices.
✔✔Demand-side Fiscal Policy - ✔✔Changes in the level or structure of government
spending and taxation aimed at influencing one or more of the components of
aggregate demand.
✔✔Demerit Good - ✔✔A good that would be over-consumed in a free market, as it
brings less overall benefit to consumers than they realise, eg tobacco.
✔✔Deregulation - ✔✔The process of removing government controls from markets.
✔✔Derived Demand - ✔✔When the demand for one good or service comes from the
demand for another good or service . The demand for cars stimulates the demand for
steel, therefore the demand for steel is derived demand.
✔✔Discouraged Workers - ✔✔Workers who leave the labour market because despite
numerous attempts they are unable to find a job.
✔✔Discretionary Fiscal Policy - ✔✔The deliberate manipulation of government
spending and taxation to influence the economy.
✔✔Diseconomies of Scale - ✔✔Where an increase in the scale of production leads to
increases in average total costs for firms.
✔✔Disequilibrium - ✔✔A situation within the market where supply does not equal
demand.
✔✔Disposable Income - ✔✔Income available to households after the payment of
income tax and national insurance contribution.
✔✔Division of Labour - ✔✔Breaking the production process down into a sequence of
tasks, with workers assigned to particular tasks.
✔✔Economic Goods - ✔✔Good that are scarce and therefore have an opportunity cost.
✔✔Economic Growth - ✔✔The capacity of the economy to produce more goods and
services over time.
✔✔Economic Indicators - ✔✔Economic statistics that provide information about the
expansions and contractions of business cycles.
, ✔✔Economic Models - ✔✔These are used to show the essential characteristics of
complicated economic conditions in order to analyse them and predict the result of
changes of variables.
✔✔Economic Welfare - ✔✔Refers to the benefit or satisfaction an individual or society
gets from the allocation of resources. We can attempt to measure the welfare of
individuals but really we want to understand the overall effects on society as a whole.
this will include how well off people feel, how much money they have but also might
consider other factors such as their environment and standard of living - their physical
well-being, although this is hard to define.
✔✔Economies of Scale - ✔✔Where an increase in the scale of production leads to
reductions in the average total cost for firms.
✔✔Effective Demand - ✔✔Demand supported by the ability to pay for a good or service.
✔✔Employment - ✔✔Where labour is actively engaged in a productive activity usually in
exchange for payments such as wages.
✔✔Equilibrium - ✔✔The price at which demand is equal to supply and there is no
tendency for change.
✔✔Excess Demand - ✔✔When demand is greater than supply at a given price.
✔✔Excess Supply - ✔✔When supply at a particular price is greater than demand, this
should signal to producers to lower prices.
✔✔Exchange Rate - ✔✔The price at which one currency, e.g. the pound, exchanges for
another e.g the US dollar.
✔✔Expansionary Fiscal Policy - ✔✔Increasing levels of government spending relative
to tax revenue. appropriate to stimulating aggregate demand during a downturn in
economic activity.
✔✔Exporting - ✔✔The sale of goods or services to a foreign country - generates
income for the home country.
✔✔Exports - ✔✔Goods or services sold abroad.
✔✔Extension in Supply - ✔✔When there is an increase in supply because the market
price has risen.
✔✔Extensions in Demand - ✔✔Increases in demand caused by changes (falls) in price.
