10/23/25, 6:07 AM Edexcel A Level Economics Paper 1 Exam Questions & Answers | 100% Verified solutions |Questions with Correct Answers 2025 l…
Edexcel A Level Economics Paper 1 Exam
Questions & Answers | 100% Verified solutions
|Questions with Correct Answers 2025 latest
update!!
Save
Terms in this set (240)
Capital
Enterprise
FOP
Land
Labour
Population
Advertising
Substitutes
Factors affecting demand Income
Fashion/ trends
Interest rates
Complements price
Productivity of labour/ capital
Indirect tax
Number of firms
Factors affecting supply Technology
Subsidies
Weather
CoP
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,10/23/25, 6:07 AM Edexcel A Level Economics Paper 1 Exam Questions & Answers | 100% Verified solutions |Questions with Correct Answers 2025 l…
Allocate (equilibrium)
Price Mechanism Ration (decreased S = increased D)
functions Signalling (excess D/S)
Incentive (increase price)
Elastic
Opposite (P up=TR down)
PED affecting TR
Inelastic
Same (P up=TR up)
Substitutes
Percentage of income
Factors affecting PED Luxury/ necessity
Addictive
Time period (LR elastic)
Production lag
Stocks (more = elastic)
Factors affecting PES Spare capacity (more = elastic)
Substitutability of FoP
Time (LR elastic)
Positive
Substitutes
XED values
Negative
Complements
Positive
Normal
YED values
Negative
Inferior
Price of final product
Demand for final product
Labour demand shifts
Productivity (labour) changes
Change in price of capital
Substitutability of capital for labour
Elasticity of demand for product
PED affecting labour
Cost of labour as a % of TC
Time period
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, 10/23/25, 6:07 AM Edexcel A Level Economics Paper 1 Exam Questions & Answers | 100% Verified solutions |Questions with Correct Answers 2025 l…
Skills required
Training period length
PED affecting supply
Vocational jobs
Time
Love To Suck Boobs
Legal (patents, licences, red tape)
barriers to entry Technical (start up costs, sunk costs, EoS)
Strategic (pricing strategies)
Brand Loyalty
resources are allocated by the price mechanism
Free market economy
(without government intervention)
Person who believes state Friedrich Hayek
control reduces freedom
- automatic system
Advantages of a free - consumer sovereignty (where the desires and needs
market economy of consumers control the output of producers)
- high motivation + competition (productive efficiency)
- higher levels of inequality
Disadvantages of a free - externalities/ monopolies
market economy - lack of merit goods
- little control over demerit goods
All FoP except labour is owned and controlled by the
command economy
state
who believed that Karl Marx
capitalist profits came
from exploiting workers
for their value
- provide a minimum SoL
advantages of command
- reduce wastage of resources (X-inefficiency)
economy
- merit goods are encouraged + v.v.
- bribery + corruption
disadvantages of a
- less motivation + efficiency
command economy
- consumers lose their freedom
https://quizlet.com/1097274845/edexcel-a-level-economics-paper-1-exam-questions-answers-100-verified-solutions-questions-with-correct-answers-… 3/29
Edexcel A Level Economics Paper 1 Exam
Questions & Answers | 100% Verified solutions
|Questions with Correct Answers 2025 latest
update!!
Save
Terms in this set (240)
Capital
Enterprise
FOP
Land
Labour
Population
Advertising
Substitutes
Factors affecting demand Income
Fashion/ trends
Interest rates
Complements price
Productivity of labour/ capital
Indirect tax
Number of firms
Factors affecting supply Technology
Subsidies
Weather
CoP
https://quizlet.com/1097274845/edexcel-a-level-economics-paper-1-exam-questions-answers-100-verified-solutions-questions-with-correct-answers-… 1/29
,10/23/25, 6:07 AM Edexcel A Level Economics Paper 1 Exam Questions & Answers | 100% Verified solutions |Questions with Correct Answers 2025 l…
Allocate (equilibrium)
Price Mechanism Ration (decreased S = increased D)
functions Signalling (excess D/S)
Incentive (increase price)
Elastic
Opposite (P up=TR down)
PED affecting TR
Inelastic
Same (P up=TR up)
Substitutes
Percentage of income
Factors affecting PED Luxury/ necessity
Addictive
Time period (LR elastic)
Production lag
Stocks (more = elastic)
Factors affecting PES Spare capacity (more = elastic)
Substitutability of FoP
Time (LR elastic)
Positive
Substitutes
XED values
Negative
Complements
Positive
Normal
YED values
Negative
Inferior
Price of final product
Demand for final product
Labour demand shifts
Productivity (labour) changes
Change in price of capital
Substitutability of capital for labour
Elasticity of demand for product
PED affecting labour
Cost of labour as a % of TC
Time period
https://quizlet.com/1097274845/edexcel-a-level-economics-paper-1-exam-questions-answers-100-verified-solutions-questions-with-correct-answers-… 2/29
, 10/23/25, 6:07 AM Edexcel A Level Economics Paper 1 Exam Questions & Answers | 100% Verified solutions |Questions with Correct Answers 2025 l…
Skills required
Training period length
PED affecting supply
Vocational jobs
Time
Love To Suck Boobs
Legal (patents, licences, red tape)
barriers to entry Technical (start up costs, sunk costs, EoS)
Strategic (pricing strategies)
Brand Loyalty
resources are allocated by the price mechanism
Free market economy
(without government intervention)
Person who believes state Friedrich Hayek
control reduces freedom
- automatic system
Advantages of a free - consumer sovereignty (where the desires and needs
market economy of consumers control the output of producers)
- high motivation + competition (productive efficiency)
- higher levels of inequality
Disadvantages of a free - externalities/ monopolies
market economy - lack of merit goods
- little control over demerit goods
All FoP except labour is owned and controlled by the
command economy
state
who believed that Karl Marx
capitalist profits came
from exploiting workers
for their value
- provide a minimum SoL
advantages of command
- reduce wastage of resources (X-inefficiency)
economy
- merit goods are encouraged + v.v.
- bribery + corruption
disadvantages of a
- less motivation + efficiency
command economy
- consumers lose their freedom
https://quizlet.com/1097274845/edexcel-a-level-economics-paper-1-exam-questions-answers-100-verified-solutions-questions-with-correct-answers-… 3/29
