10/23/25, 6:10 AM Edexcel A-level Economics Paper 1 EXAM Questions with 100% Correct Answers | Verified | Updated (Actual Exam) 2025\2026 L…
Edexcel A-level Economics Paper 1 EXAM
Questions with 100% Correct Answers | Verified |
Updated (Actual Exam) 2025\2026 LATEST
VERSION!!
Save
Terms in this set (223)
Economics The study of the allocation of scarce resources.
Economic Goods Resources that are scarce.
A time period where at least one factor of production
Short Run
is fixed.
A time period where all factors of production are
Long Run
variable.
Productivity The output per unit of input.
The Economic Problem Resources are scarce but wants are infinite.
The world's resources are limited, there are only
Scarcity limited amounts of land, water, oil, food, etc..
Therefore, resources are scarce.
Goods that are unlimited in supply and therefore have
Free Goods
no opportunity cost.
Consumer, Business and Governments.
Economic Agents
Agents involved in Economic transactions.
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,10/23/25, 6:10 AM Edexcel A-level Economics Paper 1 EXAM Questions with 100% Correct Answers | Verified | Updated (Actual Exam) 2025\2026 L…
The maximum potential output
of a combination of goods an
Production Possibility economy can achieve when all
Frontier its resources are fully and
efficiently employed, given the
level of technology.
Opportunity Cost The next best alternative foregone.
Economic Growth Increase an economy's productive potential.
Goods intended for use in production, rather than by
Capital Goods
consumers.
Consumer Goods Goods designed for use by final consumers.
A resource whose stock level can be replenished
Renewable Resources
naturally over a period of time.
A resource whose stock level decreases over time as
Non-renewable Resources
it is consumed.
'All other things (factors) remaining the same'
The assumption that all other variables within a model
Ceteris Paribus
remain constant whilst the change is being
considered.
A statement based on facts which can be tested as
Positive Statement
true or false and are value-free.
A statement based on value judgements which cannot
Normative Statement
be tested as true or false.
Specialisation of workers on specific tasks in the
Division of Labour
production process.
The process of breaking down the production
process into steps and then each worker is assigned a
Specialisation
step. This would then increase labour productivity
(Output per Worker).
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An exchange of goods/services for other
goods/services.
Barter
- Does not involve money.
- Double coincidence of wants.
Where all resources are privately owned and
Free Market Economy allocated via the price mechanism. There is minimal
government intervention.
Where there is public ownership of resources and
Command Economy
these are allocated by the government.
Where some resources are owned and allocated by
Mixed Economy
the private sector and some by the public sector.
Market A channel where goods and services are exchanged.
The capacity of a good or service to satisfy some
Utility
human want.
Where consumers allocate their expenditure on
Rational Decision Making goods and services to maximize utility, and producers
allocate their resources to maximize profits.
The quantity of goods or services that will be bought
Demand
at any given price over a period of time.
Shows the quantity of a good or
service that would be bought
over a range of different price
Demand Curve levels in a given period of time.
Slopes downward - Price and
Quantity have an inverse
(negative) relationship.
The additional satisfaction that a consumer gains for
Marginal Utility
consuming one additional unit of a product.
Diminishing Marginal As successive units of a good are consumed, the
Utility utility gained from each extra unit will fall.
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Edexcel A-level Economics Paper 1 EXAM
Questions with 100% Correct Answers | Verified |
Updated (Actual Exam) 2025\2026 LATEST
VERSION!!
Save
Terms in this set (223)
Economics The study of the allocation of scarce resources.
Economic Goods Resources that are scarce.
A time period where at least one factor of production
Short Run
is fixed.
A time period where all factors of production are
Long Run
variable.
Productivity The output per unit of input.
The Economic Problem Resources are scarce but wants are infinite.
The world's resources are limited, there are only
Scarcity limited amounts of land, water, oil, food, etc..
Therefore, resources are scarce.
Goods that are unlimited in supply and therefore have
Free Goods
no opportunity cost.
Consumer, Business and Governments.
Economic Agents
Agents involved in Economic transactions.
https://quizlet.com/1097276544/edexcel-a-level-economics-paper-1-exam-questions-with-100-correct-answers-verified-updated-actual-exam-202520… 1/20
,10/23/25, 6:10 AM Edexcel A-level Economics Paper 1 EXAM Questions with 100% Correct Answers | Verified | Updated (Actual Exam) 2025\2026 L…
The maximum potential output
of a combination of goods an
Production Possibility economy can achieve when all
Frontier its resources are fully and
efficiently employed, given the
level of technology.
Opportunity Cost The next best alternative foregone.
Economic Growth Increase an economy's productive potential.
Goods intended for use in production, rather than by
Capital Goods
consumers.
Consumer Goods Goods designed for use by final consumers.
A resource whose stock level can be replenished
Renewable Resources
naturally over a period of time.
A resource whose stock level decreases over time as
Non-renewable Resources
it is consumed.
'All other things (factors) remaining the same'
The assumption that all other variables within a model
Ceteris Paribus
remain constant whilst the change is being
considered.
A statement based on facts which can be tested as
Positive Statement
true or false and are value-free.
A statement based on value judgements which cannot
Normative Statement
be tested as true or false.
Specialisation of workers on specific tasks in the
Division of Labour
production process.
The process of breaking down the production
process into steps and then each worker is assigned a
Specialisation
step. This would then increase labour productivity
(Output per Worker).
https://quizlet.com/1097276544/edexcel-a-level-economics-paper-1-exam-questions-with-100-correct-answers-verified-updated-actual-exam-202520… 2/20
, 10/23/25, 6:10 AM Edexcel A-level Economics Paper 1 EXAM Questions with 100% Correct Answers | Verified | Updated (Actual Exam) 2025\2026 L…
An exchange of goods/services for other
goods/services.
Barter
- Does not involve money.
- Double coincidence of wants.
Where all resources are privately owned and
Free Market Economy allocated via the price mechanism. There is minimal
government intervention.
Where there is public ownership of resources and
Command Economy
these are allocated by the government.
Where some resources are owned and allocated by
Mixed Economy
the private sector and some by the public sector.
Market A channel where goods and services are exchanged.
The capacity of a good or service to satisfy some
Utility
human want.
Where consumers allocate their expenditure on
Rational Decision Making goods and services to maximize utility, and producers
allocate their resources to maximize profits.
The quantity of goods or services that will be bought
Demand
at any given price over a period of time.
Shows the quantity of a good or
service that would be bought
over a range of different price
Demand Curve levels in a given period of time.
Slopes downward - Price and
Quantity have an inverse
(negative) relationship.
The additional satisfaction that a consumer gains for
Marginal Utility
consuming one additional unit of a product.
Diminishing Marginal As successive units of a good are consumed, the
Utility utility gained from each extra unit will fall.
https://quizlet.com/1097276544/edexcel-a-level-economics-paper-1-exam-questions-with-100-correct-answers-verified-updated-actual-exam-202520… 3/20
