AQA ECONOMICS FULL STUDY SHEET
QUESTIONS AND CORRECT ANSWERS
COLLECTION
●● normative statement
Answer: a statement that includes a value judgement and cannot be
refuted just by looking at the evidence
●● 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
●● economic welfare
Answer: the economic well-being of an individual, a group within
society, or an economy
●● production
Answer: a process, or set of processes, that converts inputs into output 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 the
resources needed to meet these wants are limited. people would like to
consume more goods and services than the economy is able to produce
with its limited resources
●● opportunity cost
Answer: the cost of giving up the next best alternative
●● production possibility frontier
Answer: a curve depicting the various combinations of two products (or
types of products) 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 in a period of time
●● full employment
Answer: when all who are willing and able to work are employed
QUESTIONS AND CORRECT ANSWERS
COLLECTION
●● normative statement
Answer: a statement that includes a value judgement and cannot be
refuted just by looking at the evidence
●● 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
●● economic welfare
Answer: the economic well-being of an individual, a group within
society, or an economy
●● production
Answer: a process, or set of processes, that converts inputs into output 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 the
resources needed to meet these wants are limited. people would like to
consume more goods and services than the economy is able to produce
with its limited resources
●● opportunity cost
Answer: the cost of giving up the next best alternative
●● production possibility frontier
Answer: a curve depicting the various combinations of two products (or
types of products) 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 in a period of time
●● full employment
Answer: when all who are willing and able to work are employed
