AQA ECONOMICS A EVALUATION 2026 EXAM QUESTIONS
AND ANSWERS RATED A+
✔✔Good - ✔✔A physical and tangible product
✔✔Service - ✔✔Intangible things
✔✔Economic Good - ✔✔A good that has an opportunity costs in consumption because
it uses up scarce resources
✔✔Free Good - ✔✔A good that doesn't have an opportunity cost in consumption
because it doesn't use up scarce resources
✔✔Production Possibility Frontier - ✔✔A curve that depicts the various combinations of
two products that can be produced when all the available resources are fully and
efficiently employed
✔✔Economic Growth - ✔✔The increase in the potential level of real output that the
economy can produce over a period of time
✔✔Causes of shifts in the PPF - ✔✔Technological improvements - leads to increased
productivity
Discovery of new resources /run out of existing resources
Changes in the working population that increase/decrease it
Economic shocks
Economic Growth
✔✔Trade-off - ✔✔Where you have to choose between conflicting objectives because
you can't achieve them all at the same time. It involves compromising and aiming to
achieve each of your objectives a bit.
✔✔Full Employment - ✔✔When all who are able and willing to work are employed
✔✔Unemployment - ✔✔When not all of those who are able and willing to work are
employed
✔✔Productive Efficiency - for an economy - ✔✔Occurs when it is impossible to produce
more of one good without producing less of another
✔✔Productive Efficiency - for a firm - ✔✔Occurs when the average total cost of
production is minimised
✔✔Economic Agents - ✔✔Producers
Consumers
, Governments
✔✔Aim of Producers - ✔✔To maximise profits
✔✔Aim of Consumers - ✔✔To maximise utility
✔✔Aim of Governments - ✔✔To maximise welfare
✔✔Planned Economy - ✔✔Scarce resources are owned and allocated by the
government
✔✔Market Economy - ✔✔Scarce resources are allocated through the price mechanism,
with limited government intervention.
✔✔Mixed Economy - ✔✔Some scarce resources are allocated by the government and
others are allocated by the price mechanism
✔✔Competitive Market - ✔✔A market in which there are a large number of buyers and
sellers. They all ask possess good market information and can easily enter or leave the
market.
✔✔Market - ✔✔Where buyers and sellers meet to exchange goods and services
✔✔Equilibrium Price - ✔✔The price at which planned demand for a good or service
equals planned supply
✔✔Supply - ✔✔The quantity of a good or service that producers are willing and able to
sell at a given price in a given period of time
✔✔Demand - ✔✔The quantity of a good or service that consumers are willing and able
to buy at a given period of time. For economists, demand is always effective demand
✔✔Effective Demand - ✔✔The desire for a good or service to be backed up with the
ability to pay
✔✔Market Demand - ✔✔The quantity of a good or service that all the consumers in a
market are able and willing to buy at different market prices
✔✔Market Supply - ✔✔The quantity of a good or service that all firms plan to sell at
given process in a given period
✔✔Increase in Demand - ✔✔A shift to the right of the demand curve
✔✔Decrease in Demand - ✔✔A shift to the left of the demand curve
AND ANSWERS RATED A+
✔✔Good - ✔✔A physical and tangible product
✔✔Service - ✔✔Intangible things
✔✔Economic Good - ✔✔A good that has an opportunity costs in consumption because
it uses up scarce resources
✔✔Free Good - ✔✔A good that doesn't have an opportunity cost in consumption
because it doesn't use up scarce resources
✔✔Production Possibility Frontier - ✔✔A curve that depicts the various combinations of
two products that can be produced when all the available resources are fully and
efficiently employed
✔✔Economic Growth - ✔✔The increase in the potential level of real output that the
economy can produce over a period of time
✔✔Causes of shifts in the PPF - ✔✔Technological improvements - leads to increased
productivity
Discovery of new resources /run out of existing resources
Changes in the working population that increase/decrease it
Economic shocks
Economic Growth
✔✔Trade-off - ✔✔Where you have to choose between conflicting objectives because
you can't achieve them all at the same time. It involves compromising and aiming to
achieve each of your objectives a bit.
✔✔Full Employment - ✔✔When all who are able and willing to work are employed
✔✔Unemployment - ✔✔When not all of those who are able and willing to work are
employed
✔✔Productive Efficiency - for an economy - ✔✔Occurs when it is impossible to produce
more of one good without producing less of another
✔✔Productive Efficiency - for a firm - ✔✔Occurs when the average total cost of
production is minimised
✔✔Economic Agents - ✔✔Producers
Consumers
, Governments
✔✔Aim of Producers - ✔✔To maximise profits
✔✔Aim of Consumers - ✔✔To maximise utility
✔✔Aim of Governments - ✔✔To maximise welfare
✔✔Planned Economy - ✔✔Scarce resources are owned and allocated by the
government
✔✔Market Economy - ✔✔Scarce resources are allocated through the price mechanism,
with limited government intervention.
✔✔Mixed Economy - ✔✔Some scarce resources are allocated by the government and
others are allocated by the price mechanism
✔✔Competitive Market - ✔✔A market in which there are a large number of buyers and
sellers. They all ask possess good market information and can easily enter or leave the
market.
✔✔Market - ✔✔Where buyers and sellers meet to exchange goods and services
✔✔Equilibrium Price - ✔✔The price at which planned demand for a good or service
equals planned supply
✔✔Supply - ✔✔The quantity of a good or service that producers are willing and able to
sell at a given price in a given period of time
✔✔Demand - ✔✔The quantity of a good or service that consumers are willing and able
to buy at a given period of time. For economists, demand is always effective demand
✔✔Effective Demand - ✔✔The desire for a good or service to be backed up with the
ability to pay
✔✔Market Demand - ✔✔The quantity of a good or service that all the consumers in a
market are able and willing to buy at different market prices
✔✔Market Supply - ✔✔The quantity of a good or service that all firms plan to sell at
given process in a given period
✔✔Increase in Demand - ✔✔A shift to the right of the demand curve
✔✔Decrease in Demand - ✔✔A shift to the left of the demand curve
