AQA ECONOMICS PAPER 3 MARK SCHEME
COMPREHENSIVE TEST SCRIPT
⩥ Market disequilibrium. Answer: Exists at any price other than the
equilibrium price. When the market is in disequilibrium there is either
excess demand or excess supply.
⩥ Excess supply. Answer: when firms wish to sell more than consumers
wish to buy, with the price above the equilibrium price
⩥ excess demand. Answer: When consumers wish to buy more than
firms wish to sell, with the price below the equilibrium price.
⩥ Joint supply. Answer: when one good is produced, another good is
also produced from the same raw materials
⩥ Competing supply. Answer: when raw materials are used to produce
one good they cannot be used to produce another good
⩥ Complementary good. Answer: A good in joint demand, or a good
which is demanded at the same time as another
, ⩥ substitute good. Answer: A good in competitions demand, namely a
good which can be used in place of the other good.
⩥ Composite demand. Answer: Demand for a good which has more than
one use. E.g Demand for wheat which can be used in biofuel and food.
⩥ Derived demand. Answer: Demand for a good which is an input into
the production of another good. E.g machinery to help produce
consumer goods.
⩥ Production. Answer: Converts inputs or factor services into outputs of
goods and services
⩥ short run production. Answer: occurs when a firm adds variable
factors of production to fixed factors of production
⩥ long run production. Answer: Occurs when a firm changes the scale of
all the factors of production
⩥ variable costs. Answer: Cost of production which changes the amount
that is produced, even in the short run.
COMPREHENSIVE TEST SCRIPT
⩥ Market disequilibrium. Answer: Exists at any price other than the
equilibrium price. When the market is in disequilibrium there is either
excess demand or excess supply.
⩥ Excess supply. Answer: when firms wish to sell more than consumers
wish to buy, with the price above the equilibrium price
⩥ excess demand. Answer: When consumers wish to buy more than
firms wish to sell, with the price below the equilibrium price.
⩥ Joint supply. Answer: when one good is produced, another good is
also produced from the same raw materials
⩥ Competing supply. Answer: when raw materials are used to produce
one good they cannot be used to produce another good
⩥ Complementary good. Answer: A good in joint demand, or a good
which is demanded at the same time as another
, ⩥ substitute good. Answer: A good in competitions demand, namely a
good which can be used in place of the other good.
⩥ Composite demand. Answer: Demand for a good which has more than
one use. E.g Demand for wheat which can be used in biofuel and food.
⩥ Derived demand. Answer: Demand for a good which is an input into
the production of another good. E.g machinery to help produce
consumer goods.
⩥ Production. Answer: Converts inputs or factor services into outputs of
goods and services
⩥ short run production. Answer: occurs when a firm adds variable
factors of production to fixed factors of production
⩥ long run production. Answer: Occurs when a firm changes the scale of
all the factors of production
⩥ variable costs. Answer: Cost of production which changes the amount
that is produced, even in the short run.
