AQA AS ECONOMICS 7135 2 PAPER 2 EXAM
SCRIPT 2026 TESTED QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
◉ what is the standard measure of economic growth? Answer: rate
of change of GDP
◉ what is the difference between total and per capita GDP? Answer:
total is the overall GDP for a country and per capita is total
GDP/population
◉ when does GDP per capita grow? Answer: when national output
grows faster than the opoulation
◉ what is the difference between real and nominal GDP? Answer:
real GDP takes into account inflation but nominal doesn't
◉ what is the difference between volume and value? Answer:
volume is adjusted for inflation
value is monetary value at prices of the day = volume x price
◉ what is gross national income? Answer: GDP and net overseas
interest and dividends
,- starting to be used more due to remittances and aid
◉ what is gross national product? Answer: GDP by any citizens or
property of a country anywher e in the world
◉ how is growth used to compare over time (2)? Answer: - put
figures into context
- make judgements about welfare
◉ what must you use when comparing countries' GDPs and why?
Answer: real GDP per capita as population growth varies and
inflation would effect it
◉ what must you consider when making comparisons in GDP
between countries? Answer: 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? Answer: 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? Answer: takes into
account cost of living
,◉ what is an example of PPP index? Answer: the big mac index
◉ what are the limitations to using GDP to compare standard of
living (6)? Answer: - 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? Answer: using the
measuring national wellbeing report
◉ what are the key questions in the national wellbeing report?
Answer: life satisfaction, anxiety, happiness and worthwhileness
◉ how are real incomes and subjective happiness related? Answer:
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? Answer:
easterlin paradox
◉ what else does income and happiness depend on other than each
other? Answer: 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? Answer: 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? Answer: consumer price index and
retail price index, CPI is used
◉ how is the CPI calculated ? Answer: living costs and food survey is
used
weighted basket of goods
measures average price change of goods
update annually
SCRIPT 2026 TESTED QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
◉ what is the standard measure of economic growth? Answer: rate
of change of GDP
◉ what is the difference between total and per capita GDP? Answer:
total is the overall GDP for a country and per capita is total
GDP/population
◉ when does GDP per capita grow? Answer: when national output
grows faster than the opoulation
◉ what is the difference between real and nominal GDP? Answer:
real GDP takes into account inflation but nominal doesn't
◉ what is the difference between volume and value? Answer:
volume is adjusted for inflation
value is monetary value at prices of the day = volume x price
◉ what is gross national income? Answer: GDP and net overseas
interest and dividends
,- starting to be used more due to remittances and aid
◉ what is gross national product? Answer: GDP by any citizens or
property of a country anywher e in the world
◉ how is growth used to compare over time (2)? Answer: - put
figures into context
- make judgements about welfare
◉ what must you use when comparing countries' GDPs and why?
Answer: real GDP per capita as population growth varies and
inflation would effect it
◉ what must you consider when making comparisons in GDP
between countries? Answer: 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? Answer: 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? Answer: takes into
account cost of living
,◉ what is an example of PPP index? Answer: the big mac index
◉ what are the limitations to using GDP to compare standard of
living (6)? Answer: - 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? Answer: using the
measuring national wellbeing report
◉ what are the key questions in the national wellbeing report?
Answer: life satisfaction, anxiety, happiness and worthwhileness
◉ how are real incomes and subjective happiness related? Answer:
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? Answer:
easterlin paradox
◉ what else does income and happiness depend on other than each
other? Answer: 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? Answer: 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? Answer: consumer price index and
retail price index, CPI is used
◉ how is the CPI calculated ? Answer: living costs and food survey is
used
weighted basket of goods
measures average price change of goods
update annually
