3.1.1 Economic Methodology And The
Economic Problem - AQA A-Level Year
1 Economics Questions With Accurate
Responces
3.1.1.1 vEconomic vmethodology v- vCORRECT✅✅--Content v
Economics vas va vsocial vscience.
Similarities vto vand vdifferences vin vmethodology vfrom vnatural vand vother vsciences.
The vdifference vbetween vpositive vand vnormative vstatements.
How vvalue vjudgements vinfluence veconomic vdecision vmaking vand vpolicy.
People's vviews vconcerning vthe vbest voption vare vinfluenced vby vthe vpositive
vconsequences vof vdifferent vdecisions vand vby vmoral vand vpolitical vjudgements.
--Additional vinformation
Students vshould vunderstand vhow vthinking vas van veconomist vmay vdiffer vfrom vother
vforms vof vscientific venquiry.
Economics v- vCORRECT✅✅A vsocial vscience vthat vstudies vhow vwe vuse vour vscarce
v(limited) vresources vsuch vas vthe vmoney vwe vhave, vthe vskills vwe vhave vand vour
vtime.
Hypothesis v- vCORRECT✅✅A vsupposition vor vproposed vexplanation vmade von vthe
vbasis vof vlimited vevidence vas va vstarting vpoint vfor vfurther vinvestigation.
Social vScience v- vCORRECT✅✅The vscientific vstudy vof vhuman vsociety vand vsocial
vrelationships.
Positive vstatement v- vCORRECT✅✅A vstatement vof vfact vthat vcan vor vcould vbe
vtested vto vsee vif vit vis vcorrect vor vincorrect.
Normative vstatement v- vCORRECT✅✅A vstatement vthat vincludes vvalue vjudgement.
vIts vcorrectness vdepends von vyour vindividual vbeliefs vand vvalues.
Value vjudgements v- vCORRECT✅✅An vassessment vof vsomething vbased von vyour
vindividual vbeliefs vand vvalues.
Value vjudgements vcan vinfluence v- vCORRECT✅✅Economic vdecision vmaking vand
vpolicy. vDifferent veconomists vmay vmake vdifferent vjudgements vfrom vthe vsame
vstatistic.
, The vdifference vbetween vEconomics vand vsciences vsuch vas vBiology v-
vCORRECT✅✅Economists vcannot vconduct vscientific vexperiments, vlike vin vnatural
vsciences, vso vmodels vare vdevised. vEconomists vthen vuse vreal-life vscenarios vto vbuild
vthese vmodels vupon, vand vassumptions vare vmade vwith vthe vmodels.
Scientific vMethod v- vCORRECT✅✅
Ceteris vParibus v- vCORRECT✅✅A vLatin vphrase vthat vmeans v"all vother vthings vheld
vconstant"
Study vtip v1 v- vCORRECT✅✅Make vsure vyou vunderstand vthe vdifference vbetween va
vpositive vand vnormative vstatement.
How vvalue vjudgements vinfluence veconomic vdecision vmaking vand vpolicy v-
vCORRECT✅✅Economists vcan vdistinguish vbetween vnormative vand vpositive, vbut
vthey vtend vto voverlook vthe vdecision vto vstudy vone vstatement vover vthe vother vwhich
vis vin vitself va vvalue vjudgment, vthis vis vknown vas va vnormative vdecision.
3.1.1.2 vThe vnature vand vpurpose vof veconomic vactivity v- vCORRECT✅✅--Content
The vcentral vpurpose vof veconomic vactivity vis vthe vproduction vof vgoods vand vservices
vto vsatisfy vneeds vand vwants.
The vkey veconomic vdecisions vare: vwhat vto vproduce, vhow vto vproduce, vand vwho vis
vto vbenefit vfrom vthe vgoods vand vservices vproduced.
--Additional vinformation
Needs v- vCORRECT✅✅Things vthat vare vnecessary vfor vhuman vsurvival, vsuch vas
vfood, vclothing, vwarmth vor vshelter.
Why vpeople vhave vneeds v- vCORRECT✅✅A vneed vis vsomething vthat vpeople vhave
vto vhave, vsomething vthat vthey vcannot vdo vwithout. vFor vexample, vfood, vwithout vfood
vpeople vwill vstarve vand vif vyou vstarve, vyou vwill veventually vdie.
Wants v- vCORRECT✅✅Things vthat vare vdesirable, vsuch vas vfashionable vclothing,
vbut vis vnot vnecessary vfor vhuman vsurvival.
Economic vwelfare v- vCORRECT✅✅The veconomic vwell-being vof van vindividual, va
vgroup vwithin vsociety, vor van veconomy.
How vneeds vand vwants vcan vimprove veconomic vwelfare. v- vCORRECT✅✅When
vpeople's vwants vand vneeds vare vsatisfied, veconomic vwelfare vis vimproved. vWelfare vis
va vconcept vthat vbandied vabout va vlot vby veconomists. vWelfare vbasically vmeans
vhuman vhappiness v- vanything vthat vimproves vhuman vhappiness vimproves vwelfare.
3.1.1.3 vEconomic vresources v- vCORRECT✅✅--Content
The veconomists' vclassification vof veconomic vresources vinto vland, vlabour, vcapital vand
venterprise, vwhich vare vthe vfactors vof vproduction.
Economic Problem - AQA A-Level Year
1 Economics Questions With Accurate
Responces
3.1.1.1 vEconomic vmethodology v- vCORRECT✅✅--Content v
Economics vas va vsocial vscience.
Similarities vto vand vdifferences vin vmethodology vfrom vnatural vand vother vsciences.
The vdifference vbetween vpositive vand vnormative vstatements.
How vvalue vjudgements vinfluence veconomic vdecision vmaking vand vpolicy.
People's vviews vconcerning vthe vbest voption vare vinfluenced vby vthe vpositive
vconsequences vof vdifferent vdecisions vand vby vmoral vand vpolitical vjudgements.
--Additional vinformation
Students vshould vunderstand vhow vthinking vas van veconomist vmay vdiffer vfrom vother
vforms vof vscientific venquiry.
Economics v- vCORRECT✅✅A vsocial vscience vthat vstudies vhow vwe vuse vour vscarce
v(limited) vresources vsuch vas vthe vmoney vwe vhave, vthe vskills vwe vhave vand vour
vtime.
Hypothesis v- vCORRECT✅✅A vsupposition vor vproposed vexplanation vmade von vthe
vbasis vof vlimited vevidence vas va vstarting vpoint vfor vfurther vinvestigation.
Social vScience v- vCORRECT✅✅The vscientific vstudy vof vhuman vsociety vand vsocial
vrelationships.
Positive vstatement v- vCORRECT✅✅A vstatement vof vfact vthat vcan vor vcould vbe
vtested vto vsee vif vit vis vcorrect vor vincorrect.
Normative vstatement v- vCORRECT✅✅A vstatement vthat vincludes vvalue vjudgement.
vIts vcorrectness vdepends von vyour vindividual vbeliefs vand vvalues.
Value vjudgements v- vCORRECT✅✅An vassessment vof vsomething vbased von vyour
vindividual vbeliefs vand vvalues.
Value vjudgements vcan vinfluence v- vCORRECT✅✅Economic vdecision vmaking vand
vpolicy. vDifferent veconomists vmay vmake vdifferent vjudgements vfrom vthe vsame
vstatistic.
, The vdifference vbetween vEconomics vand vsciences vsuch vas vBiology v-
vCORRECT✅✅Economists vcannot vconduct vscientific vexperiments, vlike vin vnatural
vsciences, vso vmodels vare vdevised. vEconomists vthen vuse vreal-life vscenarios vto vbuild
vthese vmodels vupon, vand vassumptions vare vmade vwith vthe vmodels.
Scientific vMethod v- vCORRECT✅✅
Ceteris vParibus v- vCORRECT✅✅A vLatin vphrase vthat vmeans v"all vother vthings vheld
vconstant"
Study vtip v1 v- vCORRECT✅✅Make vsure vyou vunderstand vthe vdifference vbetween va
vpositive vand vnormative vstatement.
How vvalue vjudgements vinfluence veconomic vdecision vmaking vand vpolicy v-
vCORRECT✅✅Economists vcan vdistinguish vbetween vnormative vand vpositive, vbut
vthey vtend vto voverlook vthe vdecision vto vstudy vone vstatement vover vthe vother vwhich
vis vin vitself va vvalue vjudgment, vthis vis vknown vas va vnormative vdecision.
3.1.1.2 vThe vnature vand vpurpose vof veconomic vactivity v- vCORRECT✅✅--Content
The vcentral vpurpose vof veconomic vactivity vis vthe vproduction vof vgoods vand vservices
vto vsatisfy vneeds vand vwants.
The vkey veconomic vdecisions vare: vwhat vto vproduce, vhow vto vproduce, vand vwho vis
vto vbenefit vfrom vthe vgoods vand vservices vproduced.
--Additional vinformation
Needs v- vCORRECT✅✅Things vthat vare vnecessary vfor vhuman vsurvival, vsuch vas
vfood, vclothing, vwarmth vor vshelter.
Why vpeople vhave vneeds v- vCORRECT✅✅A vneed vis vsomething vthat vpeople vhave
vto vhave, vsomething vthat vthey vcannot vdo vwithout. vFor vexample, vfood, vwithout vfood
vpeople vwill vstarve vand vif vyou vstarve, vyou vwill veventually vdie.
Wants v- vCORRECT✅✅Things vthat vare vdesirable, vsuch vas vfashionable vclothing,
vbut vis vnot vnecessary vfor vhuman vsurvival.
Economic vwelfare v- vCORRECT✅✅The veconomic vwell-being vof van vindividual, va
vgroup vwithin vsociety, vor van veconomy.
How vneeds vand vwants vcan vimprove veconomic vwelfare. v- vCORRECT✅✅When
vpeople's vwants vand vneeds vare vsatisfied, veconomic vwelfare vis vimproved. vWelfare vis
va vconcept vthat vbandied vabout va vlot vby veconomists. vWelfare vbasically vmeans
vhuman vhappiness v- vanything vthat vimproves vhuman vhappiness vimproves vwelfare.
3.1.1.3 vEconomic vresources v- vCORRECT✅✅--Content
The veconomists' vclassification vof veconomic vresources vinto vland, vlabour, vcapital vand
venterprise, vwhich vare vthe vfactors vof vproduction.
