Economics AQA A-Level Exam Revision Study Guide with Practice Questions Latest Edition (2026)

ECONOMICS AQA A LEVEL EXAM, REVISION
QUESTIONS WITH CORRECT AND VERIFIED ANSWERS
LATEST EDITION

Positive Statement - ans-A statement that can be tested to see if it's correct or not
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Normative Statement - ans- ws ws ws


A statement that has a value judgement and can't be refuted by looking at evidence
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Need - ans-Something necessary for human survival
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Want - ans-Something that is desirable
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Economic welfare - ans-The economic wellbeing of an individual or group of people
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(Human happiness) ws




Capital good - ans-A good used in the production of other good and services
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Factors of production - ans-Land, Labour, Capital, Enterprise
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Fundamental Economic Problem is - ans- ws ws ws ws ws


scarcity and that it results from limited resources and unlimited wants
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Scarcity - ans- ws ws


Choices have to made how scarce resources are going to be allocated
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Opportunity cost - ans-The cost of giving up the next best alternative
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Productive efficiency - ans-When the average total costs of production is minimised
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A llocative efficiency - ans- ws ws ws


A vailable resources are used to produce the best combination of goods and services
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that best match people's preferences
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Demand - ans- ws ws


The quantity of a good or service that consumers are willing and able to buy at a gi
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ven time ws




Normal good - ans-A good for which demand increases when income increases
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, IED > 1 ws ws




Inferior good - ans-A good for which demand increases when income falls
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IED < 1 ws ws




Price elasticity of demand - ans-
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Measures the extent to which the demand of a good changes in response to a chan
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ge in the price of that good
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%QD/%P

Income elasticity of demand - ans-
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Measures the extent to which the demand of good changes in response to a chang
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e in income
ws ws




%QD/%Y

Cross elasticity of demand - ans-
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Measures the extent in which the demand of a good changes in response to a chan
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ge in the price of another
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Price elasticity of supply - ans-
ws ws ws ws ws


Measures the extent to which the supply of a good changes in response to a chang
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e in price of that good
ws ws ws ws ws




Market equilibrium - ans- ws ws ws


Planned demand = planned supply. No excess demand or supply, and no reason for
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the price to change
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Joint supply - ans- ws ws ws


When one good is produced, another good is produced from the same raw material
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Eg. Beef and Leather
ws ws ws




Competing supply - ans- ws ws ws


When raw material is used to produce one good CANT be used to produce another
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Eg. Biofuels and Wheat
ws ws ws




Joint demand - ans-occurs when demand for two goods is interdependent.
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E.g. it is no good having a printer without the ink to go with it
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Complementary good - ans- ws ws ws


A good in joint demand, or demanded at the same time as another
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