ECONOMICS AQA A LEVEL PAPER 1 EXAM | QUESTIONS AND
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | LATEST
EXAM
positive statement - CORRECT ANSWER- An objective statement that can be
tested against facts to be declared either true or false.
normative statement - CORRECT ANSWER- A subjective opinion, or value
judgement, that cannot be declared either true or false.
Need - CORRECT ANSWER- something essential for survival such as food or
medical care
Want - CORRECT ANSWER- something that people desire but that is not
necessary for human survival.
Economic welfare - CORRECT ANSWER- The economic well-being of an
individual, a group within society, or an economy.
Production - CORRECT ANSWER- a process, or set of processes, that
converts inputs into output of goods.
Capital good - CORRECT ANSWER- A good which is used in the production
of other goods or services. Also known as a producer good.
Consumer good - CORRECT ANSWER- A good which is consumed by
individuals or households to satisfy their needs or wants.
, factors of production - CORRECT ANSWER- Inputs the productive process
such as land, labour, capital and enterprise.
Fundamental economic problem - CORRECT 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 - CORRECT 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 - CORRECT ANSWER- the cost of giving up the next best
alternative
Market - CORRECT ANSWER- A situation where buyers and sellers come
together to engage in trade.
Equilibrium price - CORRECT ANSWER- the price at which planned demand
for a good or service exactly equals planned supply.
Effective demand - CORRECT ANSWER- The desire for a good or service
backed by an ability to pay
market demand - CORRECT ANSWER- The quantity of a good or service that
all the consumers in a market are willing and able to buy at different market
prices.
Conditions of demand - CORRECT ANSWER- a determinant of demand,
other than the good's own price, that fixes the position of the demand curve
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | LATEST
EXAM
positive statement - CORRECT ANSWER- An objective statement that can be
tested against facts to be declared either true or false.
normative statement - CORRECT ANSWER- A subjective opinion, or value
judgement, that cannot be declared either true or false.
Need - CORRECT ANSWER- something essential for survival such as food or
medical care
Want - CORRECT ANSWER- something that people desire but that is not
necessary for human survival.
Economic welfare - CORRECT ANSWER- The economic well-being of an
individual, a group within society, or an economy.
Production - CORRECT ANSWER- a process, or set of processes, that
converts inputs into output of goods.
Capital good - CORRECT ANSWER- A good which is used in the production
of other goods or services. Also known as a producer good.
Consumer good - CORRECT ANSWER- A good which is consumed by
individuals or households to satisfy their needs or wants.
, factors of production - CORRECT ANSWER- Inputs the productive process
such as land, labour, capital and enterprise.
Fundamental economic problem - CORRECT 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 - CORRECT 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 - CORRECT ANSWER- the cost of giving up the next best
alternative
Market - CORRECT ANSWER- A situation where buyers and sellers come
together to engage in trade.
Equilibrium price - CORRECT ANSWER- the price at which planned demand
for a good or service exactly equals planned supply.
Effective demand - CORRECT ANSWER- The desire for a good or service
backed by an ability to pay
market demand - CORRECT ANSWER- The quantity of a good or service that
all the consumers in a market are willing and able to buy at different market
prices.
Conditions of demand - CORRECT ANSWER- a determinant of demand,
other than the good's own price, that fixes the position of the demand curve
