A LEVEL ECONOMICS (AQA) NEWEST EXAM
2025 WITH MULTIPLE CHOICE OF QUESTIONS
AND DETAILED SOLVED SOLUTIONS
ALREADY GRADED A+ AND 100% GUARANTEE
PASS (JUST RELEASED!!!!!!!)
Price Elasticity of Demand - CORRECT ANSWER-a measure of how
much the quantity demanded of a good responds to a change in
the price of that good.
Income Elasticity of Demand - CORRECT ANSWER-a measure of the
responsiveness of the quantity demanded to changes in income.
Cross Price Elasticity of Demand - CORRECT ANSWER-measures the
response of demand for one good to changes in the price of
another good
PED Formula - CORRECT ANSWER-% change in quantity demanded /
% change in price
YED Formula - CORRECT ANSWER-% change in quantity demanded /
% change in income
XED Formula - CORRECT ANSWER-% change in quantity demanded
of good X / % change in price of good Y
,Luxury Good - CORRECT ANSWER-a good with an income elasticity
greater than 1 for which demand rises by a greater amount than
the rise in income.
Normal Good - CORRECT ANSWER-a good for which the demand
increases as income rises and decreases as income falls
Veblen Good - CORRECT ANSWER-A good with a positively sloped
demand curve. As price increases people buy more of these
goods to demonstrate their social status.
Inferior Good - CORRECT ANSWER-a good for which, other things
being equal, an increase in income leads to a decrease in
demand
Substitute Good - CORRECT ANSWER-A good that can be used in
place of another good
Complementary Good - CORRECT ANSWER-Products and services
that are used together. When the price of one falls, the demand
for the other increases (and conversely).
Positive Economic Statement - CORRECT ANSWER-A statement that
can be proved or disproved by reference to facts
Normative Economic Statement - CORRECT ANSWER-A statement
that reflects on opinion, which cannot be proved or disproved
by reference to the facts.
, Production Possibilities Frontier (PPF) - CORRECT ANSWER-a
diagram that shows the productively efficient combinations of
two products that an economy can produce given the resources
it has available
Opportunity Cost - CORRECT ANSWER-The cost of the next best
alternative forgone.
Scarcity - CORRECT ANSWER-A situation in which unlimited wants
exceed the limited resources available to fulfill those wants
The Basic Economic Problem - CORRECT ANSWER-Resources have to
be allocated between competing uses because wants are infinite
whilst resources are scarce
Value Judgement - CORRECT ANSWER-An opinion based on a
person's individual values and beliefs
Productive Efficiency - CORRECT ANSWER-Goods are being produced
at lowest possible cost. To be productively efficient means the
economy must be producing on its production possibility
frontier.
Allocative Efficiency - CORRECT ANSWER-When the mix of goods
being produced represents the mix that society most desires. A
more precise definition of is at an output level where the price
equals the Marginal Cost (MC) of production. This is because
the price that consumers are willing to pay is equivalent to the
marginal utility that they get
2025 WITH MULTIPLE CHOICE OF QUESTIONS
AND DETAILED SOLVED SOLUTIONS
ALREADY GRADED A+ AND 100% GUARANTEE
PASS (JUST RELEASED!!!!!!!)
Price Elasticity of Demand - CORRECT ANSWER-a measure of how
much the quantity demanded of a good responds to a change in
the price of that good.
Income Elasticity of Demand - CORRECT ANSWER-a measure of the
responsiveness of the quantity demanded to changes in income.
Cross Price Elasticity of Demand - CORRECT ANSWER-measures the
response of demand for one good to changes in the price of
another good
PED Formula - CORRECT ANSWER-% change in quantity demanded /
% change in price
YED Formula - CORRECT ANSWER-% change in quantity demanded /
% change in income
XED Formula - CORRECT ANSWER-% change in quantity demanded
of good X / % change in price of good Y
,Luxury Good - CORRECT ANSWER-a good with an income elasticity
greater than 1 for which demand rises by a greater amount than
the rise in income.
Normal Good - CORRECT ANSWER-a good for which the demand
increases as income rises and decreases as income falls
Veblen Good - CORRECT ANSWER-A good with a positively sloped
demand curve. As price increases people buy more of these
goods to demonstrate their social status.
Inferior Good - CORRECT ANSWER-a good for which, other things
being equal, an increase in income leads to a decrease in
demand
Substitute Good - CORRECT ANSWER-A good that can be used in
place of another good
Complementary Good - CORRECT ANSWER-Products and services
that are used together. When the price of one falls, the demand
for the other increases (and conversely).
Positive Economic Statement - CORRECT ANSWER-A statement that
can be proved or disproved by reference to facts
Normative Economic Statement - CORRECT ANSWER-A statement
that reflects on opinion, which cannot be proved or disproved
by reference to the facts.
, Production Possibilities Frontier (PPF) - CORRECT ANSWER-a
diagram that shows the productively efficient combinations of
two products that an economy can produce given the resources
it has available
Opportunity Cost - CORRECT ANSWER-The cost of the next best
alternative forgone.
Scarcity - CORRECT ANSWER-A situation in which unlimited wants
exceed the limited resources available to fulfill those wants
The Basic Economic Problem - CORRECT ANSWER-Resources have to
be allocated between competing uses because wants are infinite
whilst resources are scarce
Value Judgement - CORRECT ANSWER-An opinion based on a
person's individual values and beliefs
Productive Efficiency - CORRECT ANSWER-Goods are being produced
at lowest possible cost. To be productively efficient means the
economy must be producing on its production possibility
frontier.
Allocative Efficiency - CORRECT ANSWER-When the mix of goods
being produced represents the mix that society most desires. A
more precise definition of is at an output level where the price
equals the Marginal Cost (MC) of production. This is because
the price that consumers are willing to pay is equivalent to the
marginal utility that they get
