AS-Level EDEXCEL 2024 Economics A
Paper 1 Mark Scheme
Economics - Correct Answer-✔✔The study of the allocation of scarce
resources.
Economic Goods - Correct Answer-✔✔Resources that are scarce.
Short Run - Correct Answer-✔✔A time period where at least one factor of
production is fixed.
Long Run - Correct Answer-✔✔A time period where all factors of
production are variable.
Productivity - Correct Answer-✔✔The output per unit of input.
The Economic Problem - Correct Answer-✔✔Resources are scarce but
wants are infinite.
Scarcity - Correct Answer-✔✔The world's resources are limited, there are
only limited amounts of land, water, oil, food, etc..
Therefore, resources are scarce.
Free Goods - Correct Answer-✔✔Goods that are unlimited in supply and
therefore have no opportunity cost.
Economic Agents - Correct Answer-✔✔Consumer, Business and
Governments.
,Agents involved in Economic transactions.
Production Possibility Frontier - Correct Answer-✔✔The maximum potential
output of a combination of goods an economy can achieve when all its
resources are fully and efficiently employed, given the level of technology.
Opportunity Cost - Correct Answer-✔✔The next best alternative foregone.
Economic Growth - Correct Answer-✔✔Increase an economy's productive
potential.
Capital Goods - Correct Answer-✔✔Goods intended for use in production,
rather than by consumers.
Consumer Goods - Correct Answer-✔✔Goods designed for use by final
consumers.
Renewable Resources - Correct Answer-✔✔A resource whose stock level
can be replenished naturally over a period of time.
Non-renewable Resources - Correct Answer-✔✔A resource whose stock
level decreases over time as it is consumed.
Ceteris Paribus - Correct Answer-✔✔'All other things (factors) remaining
the same'
The assumption that all other variables within a model remain constant
whilst the change is being considered.
, Positive Statement - Correct Answer-✔✔A statement based on facts which
can be tested as true or false and are value-free.
Normative Statement - Correct Answer-✔✔A statement based on value
judgements which cannot be tested as true or false.
Adam Smith - Correct Answer-✔✔The Father of Economics;
- The Invisible Hand (workings of the Price Mechanism)
- Specialisation
- Division of Labour
Division of Labour - Correct Answer-✔✔Specialisation of workers on
specific tasks in the production process.
Specialisation - Correct Answer-✔✔The process of breaking down the
production process into steps and then each worker is assigned a step.
This would then increase labour productivity (Output per Worker).
Barter - Correct Answer-✔✔An exchange of goods/services for other
goods/services.
- Does not involve money.
- Double coincidence of wants.
Money - Correct Answer-✔✔Anything which is acceptable to a wide
number of people and organisations as payment for goods and services.
Paper 1 Mark Scheme
Economics - Correct Answer-✔✔The study of the allocation of scarce
resources.
Economic Goods - Correct Answer-✔✔Resources that are scarce.
Short Run - Correct Answer-✔✔A time period where at least one factor of
production is fixed.
Long Run - Correct Answer-✔✔A time period where all factors of
production are variable.
Productivity - Correct Answer-✔✔The output per unit of input.
The Economic Problem - Correct Answer-✔✔Resources are scarce but
wants are infinite.
Scarcity - Correct Answer-✔✔The world's resources are limited, there are
only limited amounts of land, water, oil, food, etc..
Therefore, resources are scarce.
Free Goods - Correct Answer-✔✔Goods that are unlimited in supply and
therefore have no opportunity cost.
Economic Agents - Correct Answer-✔✔Consumer, Business and
Governments.
,Agents involved in Economic transactions.
Production Possibility Frontier - Correct Answer-✔✔The maximum potential
output of a combination of goods an economy can achieve when all its
resources are fully and efficiently employed, given the level of technology.
Opportunity Cost - Correct Answer-✔✔The next best alternative foregone.
Economic Growth - Correct Answer-✔✔Increase an economy's productive
potential.
Capital Goods - Correct Answer-✔✔Goods intended for use in production,
rather than by consumers.
Consumer Goods - Correct Answer-✔✔Goods designed for use by final
consumers.
Renewable Resources - Correct Answer-✔✔A resource whose stock level
can be replenished naturally over a period of time.
Non-renewable Resources - Correct Answer-✔✔A resource whose stock
level decreases over time as it is consumed.
Ceteris Paribus - Correct Answer-✔✔'All other things (factors) remaining
the same'
The assumption that all other variables within a model remain constant
whilst the change is being considered.
, Positive Statement - Correct Answer-✔✔A statement based on facts which
can be tested as true or false and are value-free.
Normative Statement - Correct Answer-✔✔A statement based on value
judgements which cannot be tested as true or false.
Adam Smith - Correct Answer-✔✔The Father of Economics;
- The Invisible Hand (workings of the Price Mechanism)
- Specialisation
- Division of Labour
Division of Labour - Correct Answer-✔✔Specialisation of workers on
specific tasks in the production process.
Specialisation - Correct Answer-✔✔The process of breaking down the
production process into steps and then each worker is assigned a step.
This would then increase labour productivity (Output per Worker).
Barter - Correct Answer-✔✔An exchange of goods/services for other
goods/services.
- Does not involve money.
- Double coincidence of wants.
Money - Correct Answer-✔✔Anything which is acceptable to a wide
number of people and organisations as payment for goods and services.
