2026 AQA A LEVEL ECONOMICS EXAMPREP
MATERIAL SOLVED QUESTIONS AND VERIFIED
SOLUTIONS PREMIUM COLLECTION
◉ Positive Statement. Answer: a statement that is objective and can
be tested by referring to the evidence available and so can be
scientifically proven
◉ Normative Statement. Answer: a statement that is subjective as it
includes a value judgement, therefore not possible to test as it is based
on opinion
◉ Need. Answer: something that is necessary for human survival,
such as food, clothing, warmth or shelter
◉ Want. Answer: something that is desirable such as fashionable
clothing, but is not necessary for human survival
◉ The basic economic problem. Answer: There are a limited amount
of resources to fulfil our infinite number of wants
◉ Economic Welfare. Answer: the economic well-being of an
individual, a group within society, or an economy. It is maximised
when scarce resources are allocated efficiently in economic activity to
produce a good people want/need
,◉ Production. Answer: a process, or set of processes, that converts
inputs into outputs of goods
◉ Capital Good. Answer: a good which is used in the production of
other goods or services. Also known as a producer good
◉ Consumer Good. Answer: a good which is consumed by
individuals or households to satisfy their needs or wants
◉ Factors of Production. Answer: inputs into the production process,
such as land, labour, capital and enterprise
◉ Finite Resource. Answer: a resource, such as oil, which is scarce
and runs out as it is used. Also known as a non-renewable resource
◉ Renewable Resource. Answer: a resource, such as timber, that with
careful management can be renewed as it is used
◉ Fundamental Economic Problem. Answer: how best to make
decisions about the allocation of scarce resources among competing
uses so as to improve and maximise human happiness and welfare
◉ Scarcity. Answer: results from the fact that people have unlimited
wants but resources to meet these wants are limited. In essence,
people would like to consume more goods and services than the
economy is able to produce with its limited resources
, ◉ Opportunity Cost. Answer: is the cost be the next best alternative
foregone when a decision is made
◉ Production Possibility Curve (PPC). Answer: combinations of two
products (or types of product) that can be produced when all the
available resources are fully and efficiently employed
◉ Economic Growth. Answer: the increase in the potential level of
real output the economy can produce over a period of time
◉ Full Employment. Answer: when all who are able and willing to
work are employed at the current wage rate
◉ Unemployment. Answer: when not all those who are able and
willing to work are employed
◉ Resource Allocation. Answer: the process through which the
available factors of production are assigned to produce different
goods and services
◉ Productive Efficiency. Answer: for the economy as a whole occurs
when it is impossible to produce more of one good without producing
less of another. For a firm it occurs when the average total cost of
production is minimised
MC=AC producing at the bottom of the ATC
MATERIAL SOLVED QUESTIONS AND VERIFIED
SOLUTIONS PREMIUM COLLECTION
◉ Positive Statement. Answer: a statement that is objective and can
be tested by referring to the evidence available and so can be
scientifically proven
◉ Normative Statement. Answer: a statement that is subjective as it
includes a value judgement, therefore not possible to test as it is based
on opinion
◉ Need. Answer: something that is necessary for human survival,
such as food, clothing, warmth or shelter
◉ Want. Answer: something that is desirable such as fashionable
clothing, but is not necessary for human survival
◉ The basic economic problem. Answer: There are a limited amount
of resources to fulfil our infinite number of wants
◉ Economic Welfare. Answer: the economic well-being of an
individual, a group within society, or an economy. It is maximised
when scarce resources are allocated efficiently in economic activity to
produce a good people want/need
,◉ Production. Answer: a process, or set of processes, that converts
inputs into outputs of goods
◉ Capital Good. Answer: a good which is used in the production of
other goods or services. Also known as a producer good
◉ Consumer Good. Answer: a good which is consumed by
individuals or households to satisfy their needs or wants
◉ Factors of Production. Answer: inputs into the production process,
such as land, labour, capital and enterprise
◉ Finite Resource. Answer: a resource, such as oil, which is scarce
and runs out as it is used. Also known as a non-renewable resource
◉ Renewable Resource. Answer: a resource, such as timber, that with
careful management can be renewed as it is used
◉ Fundamental Economic Problem. Answer: how best to make
decisions about the allocation of scarce resources among competing
uses so as to improve and maximise human happiness and welfare
◉ Scarcity. Answer: results from the fact that people have unlimited
wants but resources to meet these wants are limited. In essence,
people would like to consume more goods and services than the
economy is able to produce with its limited resources
, ◉ Opportunity Cost. Answer: is the cost be the next best alternative
foregone when a decision is made
◉ Production Possibility Curve (PPC). Answer: combinations of two
products (or types of product) that can be produced when all the
available resources are fully and efficiently employed
◉ Economic Growth. Answer: the increase in the potential level of
real output the economy can produce over a period of time
◉ Full Employment. Answer: when all who are able and willing to
work are employed at the current wage rate
◉ Unemployment. Answer: when not all those who are able and
willing to work are employed
◉ Resource Allocation. Answer: the process through which the
available factors of production are assigned to produce different
goods and services
◉ Productive Efficiency. Answer: for the economy as a whole occurs
when it is impossible to produce more of one good without producing
less of another. For a firm it occurs when the average total cost of
production is minimised
MC=AC producing at the bottom of the ATC
