AQA ECONOMICS PROFESSIONAL EXAM
PREP QUESTIONS AND ACCURATE
ANSWERS GRADED A+
●● Positive Statements
Answer: A statement of fact that can be tested to see if it is incorrect or
correct
●● Normative Statements
Answer: A statement that includes a value judgement and cannot be
disproved just by looking at evidence
●● Need
Answer: Something that is essential for human survival e.g. food and
water
●● Want
Answer: Something that is desirable e.g. fashionable accessories
●● Economic Welfare
Answer: The economic well-being of an individual, a group within
society, or an economy
,●● Production
Answer: A process, or a set of processes that converts inputs into output
of goods
●● Capital Goods
Answer: Goods used in the production of other goods or services (also
known as a producer good)
●● Consumer Goods
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
●● CELL - the four factors of production
Answer: Capital
Enterprise
Land
Labour
●● Capital
Answer: Equipment used in producing goods and services
,●● Enterprise
Answer: Refers to the decision makers and the risk takers in the firm
●● Labour
Answer: The human input into the production process
●● Land
Answer: The actual land and the natural resources in and on it
●● Interest
Answer: The reward for capital
●● Rent
Answer: The reward for land
●● Wages
Answer: The reward for labour
●● Profit
Answer: The reward for enterprise
, ●● Finite Resources
Answer: Resources which are scarce and run out as they are used, such
as oil (also known as a non-renewable resource)
●● Renewable Resources
Answer: Resources which with careful management can be renewed as
they are used, such as timber
●● 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
●● Fundamental Questions
Answer: What to produce?
How to produce it?
Who to produce it for?
●● Scarcity
Answer: Results from the fact that wants are unlimited but resources to
meet these wants are limited
●● Opportunity Cost
PREP QUESTIONS AND ACCURATE
ANSWERS GRADED A+
●● Positive Statements
Answer: A statement of fact that can be tested to see if it is incorrect or
correct
●● Normative Statements
Answer: A statement that includes a value judgement and cannot be
disproved just by looking at evidence
●● Need
Answer: Something that is essential for human survival e.g. food and
water
●● Want
Answer: Something that is desirable e.g. fashionable accessories
●● Economic Welfare
Answer: The economic well-being of an individual, a group within
society, or an economy
,●● Production
Answer: A process, or a set of processes that converts inputs into output
of goods
●● Capital Goods
Answer: Goods used in the production of other goods or services (also
known as a producer good)
●● Consumer Goods
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
●● CELL - the four factors of production
Answer: Capital
Enterprise
Land
Labour
●● Capital
Answer: Equipment used in producing goods and services
,●● Enterprise
Answer: Refers to the decision makers and the risk takers in the firm
●● Labour
Answer: The human input into the production process
●● Land
Answer: The actual land and the natural resources in and on it
●● Interest
Answer: The reward for capital
●● Rent
Answer: The reward for land
●● Wages
Answer: The reward for labour
●● Profit
Answer: The reward for enterprise
, ●● Finite Resources
Answer: Resources which are scarce and run out as they are used, such
as oil (also known as a non-renewable resource)
●● Renewable Resources
Answer: Resources which with careful management can be renewed as
they are used, such as timber
●● 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
●● Fundamental Questions
Answer: What to produce?
How to produce it?
Who to produce it for?
●● Scarcity
Answer: Results from the fact that wants are unlimited but resources to
meet these wants are limited
●● Opportunity Cost
