AQA ECONOMICS COMPREHENSIVE EXAM 2025/2026
QUESTIONS AND SOLUTIONS MARKED A+
✔✔Index Numbers - ✔✔A weighted average of a group of items compared to a given
base value of 100.
✔✔Indirect Tax - ✔✔A tax on spending.
✔✔Inferior Goods - ✔✔Goods or services that will see demand fall when income rises.
✔✔Inflation - ✔✔A persistent increase in the level of prices.
✔✔Inflationary Pressure - ✔✔Occurrences that are likely to lead to increased prices.
✔✔Injections - ✔✔Money that originates outside the circular flow and so will increase
national income/output/expenditure.
✔✔Interest Rate - ✔✔The cost of borrowing or the reward for saving.
✔✔Investment - ✔✔Spending by firms on buildings, machinery and improving the skills
of the labour force.
✔✔Investment Good - ✔✔A product that will increase in value over time.
✔✔Invisibles - ✔✔Intangibles such as the provision of insurance or banking services.
✔✔Joint Supply - ✔✔When the production of one good also results in the production of
another.
✔✔Keynesian - ✔✔The view of John Maynard Keynes, a very influential UK economist
who suggested how governments could cure mass unemployment.
✔✔Labour Market - ✔✔An example of a factor market, in this case where labour is
bought and sold.
✔✔Law of Unintended Consequences - ✔✔When the actions of consumers, producers
and governments have effects that are unanticipated.
✔✔Long-run Aggregate Supply - ✔✔The economy's productive capacity.
✔✔Marginal External Benefit - ✔✔The spillover benefit to third parties of an economic
transaction.
, ✔✔Marginal External Cost - ✔✔The spillover costs to third parties of an economic
transaction.
✔✔Marginal Private Benefit - ✔✔The benefit to an individual or firm of an economic
transaction.
✔✔Marginal Private Cost - ✔✔The cost to an individual or firm of an economic
transaction.
✔✔Marginal Social Benefit - ✔✔The full benefit to society of an economic transaction,
including private and external benefits.
✔✔Marginal Social Cost - ✔✔The full cost to society of an economic transaction,
including private and external costs.
✔✔Market-clearing Price - ✔✔The price at which all goods that are supplied will be
demanded.
✔✔Market Demand - ✔✔Total demand in a market for a good, the sum of all individuals
demand, at each given price.
✔✔Market Failure - ✔✔Where the market fails to produce what consumers require at
the lowest possible cost.
✔✔Market Supply - ✔✔The sum of all individual firm's supply curves at each given
price.
✔✔Maximum Price - ✔✔A price ceiling above which the price of a good or service is not
allowed to increase.
✔✔Merit Good - ✔✔A good that would be under-consumed in a free market, as
individuals do not fully perceive the benefits obtained from consumption, e.g. education.
✔✔Minimum Price - ✔✔A price floor below which the price of a good or service is not
allowed to decrease.
✔✔Monetary Policy - ✔✔Controlling the macroeconomy via changes in monetary
variables such as the money supply or interest rates.
✔✔Monetary Policy Committee - ✔✔A committee of economists and central bankers
who meet monthly and decide whether or not to change the rate of interest.
✔✔Money Supply - ✔✔The total amount of money in an economy.
QUESTIONS AND SOLUTIONS MARKED A+
✔✔Index Numbers - ✔✔A weighted average of a group of items compared to a given
base value of 100.
✔✔Indirect Tax - ✔✔A tax on spending.
✔✔Inferior Goods - ✔✔Goods or services that will see demand fall when income rises.
✔✔Inflation - ✔✔A persistent increase in the level of prices.
✔✔Inflationary Pressure - ✔✔Occurrences that are likely to lead to increased prices.
✔✔Injections - ✔✔Money that originates outside the circular flow and so will increase
national income/output/expenditure.
✔✔Interest Rate - ✔✔The cost of borrowing or the reward for saving.
✔✔Investment - ✔✔Spending by firms on buildings, machinery and improving the skills
of the labour force.
✔✔Investment Good - ✔✔A product that will increase in value over time.
✔✔Invisibles - ✔✔Intangibles such as the provision of insurance or banking services.
✔✔Joint Supply - ✔✔When the production of one good also results in the production of
another.
✔✔Keynesian - ✔✔The view of John Maynard Keynes, a very influential UK economist
who suggested how governments could cure mass unemployment.
✔✔Labour Market - ✔✔An example of a factor market, in this case where labour is
bought and sold.
✔✔Law of Unintended Consequences - ✔✔When the actions of consumers, producers
and governments have effects that are unanticipated.
✔✔Long-run Aggregate Supply - ✔✔The economy's productive capacity.
✔✔Marginal External Benefit - ✔✔The spillover benefit to third parties of an economic
transaction.
, ✔✔Marginal External Cost - ✔✔The spillover costs to third parties of an economic
transaction.
✔✔Marginal Private Benefit - ✔✔The benefit to an individual or firm of an economic
transaction.
✔✔Marginal Private Cost - ✔✔The cost to an individual or firm of an economic
transaction.
✔✔Marginal Social Benefit - ✔✔The full benefit to society of an economic transaction,
including private and external benefits.
✔✔Marginal Social Cost - ✔✔The full cost to society of an economic transaction,
including private and external costs.
✔✔Market-clearing Price - ✔✔The price at which all goods that are supplied will be
demanded.
✔✔Market Demand - ✔✔Total demand in a market for a good, the sum of all individuals
demand, at each given price.
✔✔Market Failure - ✔✔Where the market fails to produce what consumers require at
the lowest possible cost.
✔✔Market Supply - ✔✔The sum of all individual firm's supply curves at each given
price.
✔✔Maximum Price - ✔✔A price ceiling above which the price of a good or service is not
allowed to increase.
✔✔Merit Good - ✔✔A good that would be under-consumed in a free market, as
individuals do not fully perceive the benefits obtained from consumption, e.g. education.
✔✔Minimum Price - ✔✔A price floor below which the price of a good or service is not
allowed to decrease.
✔✔Monetary Policy - ✔✔Controlling the macroeconomy via changes in monetary
variables such as the money supply or interest rates.
✔✔Monetary Policy Committee - ✔✔A committee of economists and central bankers
who meet monthly and decide whether or not to change the rate of interest.
✔✔Money Supply - ✔✔The total amount of money in an economy.
