EDEXCEL A-LEVEL ECONOMICS Paper 3
Exam Questions with Accurate Answers &
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1. Demand - ANSWER The quantity of a good/service that consumers are
willing and able to buy at a given price in a given time period.
2. Collusion - ANSWER two or more businesses agreeing to a restrictive
practice such as price fixing.
3. Contract of Employment - ANSWER A written agreement between an
employer and an employee in which each has certain obligations
4. Discrimination - ANSWER favouring one person over another on grounds
such as race, religion or sexuality.
5. employment tribunal - ANSWER A court that deals with cases involving
disputes between employers and employees
6. National minimum wage - ANSWER A wage rate set by the government
below which it is illegal to pay people at work
7. unfair dismissal - ANSWER The illegal dismissal of a worker by a business
,8. Equal Pay Act - ANSWER made it illegal for employers to pay female
workers less than men for the same job
,9. Colluding - ANSWER In business, where several businesses (or countries)
make agreements among themselves which benefit them at the expense of
either rival businesses or customers
10. Market Structures - ANSWER The characteristics of a market, such as the
size of the barriers to entry to the market, the number of businesses in the
market or whether they produce identical products, which determine the
behaviour of businesses within the market
11. Niche Market - ANSWER A smaller part of a larger market in which
customers have more specific needs and wants
12. Mass Market - ANSWER all possible customers in a market, regardless of
the differences in their specific needs and wants
13. Investment Appraisal - ANSWER The evaluation of an investment project to
determine whether or not it is likely to be worthwhile
14. Average Rate of Return (ARR) - ANSWER Measures the annual net return
on an investment as a percentage of its initial cost
15. Capital Cost - ANSWER The amount of money spent when setting up a new
venture
, 16. Discounted Cash Flow (DCF) - ANSWER A method of investment appraisal
that takes interest rates into account by calculating the present value of
future income
Exam Questions with Accurate Answers &
Explanations Guaranteed Pass Latest Version
2026 Top Rated
1. Demand - ANSWER The quantity of a good/service that consumers are
willing and able to buy at a given price in a given time period.
2. Collusion - ANSWER two or more businesses agreeing to a restrictive
practice such as price fixing.
3. Contract of Employment - ANSWER A written agreement between an
employer and an employee in which each has certain obligations
4. Discrimination - ANSWER favouring one person over another on grounds
such as race, religion or sexuality.
5. employment tribunal - ANSWER A court that deals with cases involving
disputes between employers and employees
6. National minimum wage - ANSWER A wage rate set by the government
below which it is illegal to pay people at work
7. unfair dismissal - ANSWER The illegal dismissal of a worker by a business
,8. Equal Pay Act - ANSWER made it illegal for employers to pay female
workers less than men for the same job
,9. Colluding - ANSWER In business, where several businesses (or countries)
make agreements among themselves which benefit them at the expense of
either rival businesses or customers
10. Market Structures - ANSWER The characteristics of a market, such as the
size of the barriers to entry to the market, the number of businesses in the
market or whether they produce identical products, which determine the
behaviour of businesses within the market
11. Niche Market - ANSWER A smaller part of a larger market in which
customers have more specific needs and wants
12. Mass Market - ANSWER all possible customers in a market, regardless of
the differences in their specific needs and wants
13. Investment Appraisal - ANSWER The evaluation of an investment project to
determine whether or not it is likely to be worthwhile
14. Average Rate of Return (ARR) - ANSWER Measures the annual net return
on an investment as a percentage of its initial cost
15. Capital Cost - ANSWER The amount of money spent when setting up a new
venture
, 16. Discounted Cash Flow (DCF) - ANSWER A method of investment appraisal
that takes interest rates into account by calculating the present value of
future income
