EDEXCEL A-LEVEL ECONOMICS
2025/2026 EXAM QUESTIONS AND
VERIFIED SOLUTIONS GRADED A+
100% PASS
Absolute advantage
When a country's output of a product per unit of input is greater than that of any other country.
Absolute poverty
When a person does not have the income or wealth to fulfil their basic needs.
Aggregate Demand (AD)
The total demand/spending in an economy at a given price level over a given period of time.
Made up of consumption, investment, government spending and net external demand.
Aggregate Supply (AS)
The total amount of goods and services that can be supplied in an economy at a given price level
over a given period of time.
Aid
The transfer of resources from one country to another.
, Allocative efficiency
Where the price of a good is equal to the price consumers are willing to pay. This occurs when
all resources are allocated efficiently.
Asymmetric information
Where buyers have more information than sellers in a market, or vice versa.
Automatic stabilisers
Parts of fiscal policy that automatically react to changes in the economic cycle.
Average Cost (AC)
The cost of production per unit of output.
Average Revenue (AR)
The revenue per unit sold.
Backward vertical integration
Where a firm merges with or takes over a firm further back in the production process.
Balance of payments
A record of the international transactions of an economy.
2025/2026 EXAM QUESTIONS AND
VERIFIED SOLUTIONS GRADED A+
100% PASS
Absolute advantage
When a country's output of a product per unit of input is greater than that of any other country.
Absolute poverty
When a person does not have the income or wealth to fulfil their basic needs.
Aggregate Demand (AD)
The total demand/spending in an economy at a given price level over a given period of time.
Made up of consumption, investment, government spending and net external demand.
Aggregate Supply (AS)
The total amount of goods and services that can be supplied in an economy at a given price level
over a given period of time.
Aid
The transfer of resources from one country to another.
, Allocative efficiency
Where the price of a good is equal to the price consumers are willing to pay. This occurs when
all resources are allocated efficiently.
Asymmetric information
Where buyers have more information than sellers in a market, or vice versa.
Automatic stabilisers
Parts of fiscal policy that automatically react to changes in the economic cycle.
Average Cost (AC)
The cost of production per unit of output.
Average Revenue (AR)
The revenue per unit sold.
Backward vertical integration
Where a firm merges with or takes over a firm further back in the production process.
Balance of payments
A record of the international transactions of an economy.
