Economics AQA A Level Paper 1 Study Guide Exam with Questions and Answers
– 100% Solved
Average cost - ✔✔✔-total cost of production divided by output
Average Cost Formula - ✔✔✔-Average cost= average fixed cost + average variable cost
Average Cost Formula - ✔✔✔-total cost/output
average revenue - ✔✔✔-total revenue divided by output; in a single-product firm, average
revenue equals the price of the product
average revenue formula - ✔✔✔-total revenue / output
barriers to entry - ✔✔✔-business practices or conditions that make it difficult for new firms to
enter the market
Capital good - ✔✔✔-A good which is used in the production of other goods or services. Also
known as a producer good.
Capital productivity - ✔✔✔-Output per unit of capital
Competing supply - ✔✔✔-when raw materials are used to produce one good they cannot be
used to produce another good
Complementary good - ✔✔✔-A good in joint demand, or a good which is demanded at the
same time as another
Composite demand - ✔✔✔-Demand for a good which has more than one use. E.g Demand for
wheat which can be used in biofuel and food.
, Economics AQA A Level Paper 1 Study Guide Exam with Questions and Answers
– 100% Solved
Conditions of demand - ✔✔✔-a determinant of demand, other than the good's own price, that
fixes the position of the demand curve
Conditions of supply - ✔✔✔-determinants of supply, other than the good's own price, that fix
the position of the supply curve
Consumer good - ✔✔✔-A good which is consumed by individuals or households to satisfy their
needs or wants.
consumer sovereignty - ✔✔✔-Through exercising their spending power, consumers collectively
determine what is produced in a market. Consumer sovereignty is strongest in a perfectly
competitive market
Cross Elasticity of Demand (XED) - ✔✔✔-The responsiveness of the demand for a product
following a change in price in another product.
cross elasticity of demand formula - ✔✔✔-% change in quantity demanded of product X / %
change in price of product Y
decrease in demand - ✔✔✔-a leftward shift of the demand curve
Decrease in supply - ✔✔✔-a leftward shift of the supply curve
Derived demand - ✔✔✔-Demand for a good which is an input into the production of another
good. E.g machinery to help produce consumer goods.
Diseconomy of scale - ✔✔✔-as output increases, long-run average cost rises
– 100% Solved
Average cost - ✔✔✔-total cost of production divided by output
Average Cost Formula - ✔✔✔-Average cost= average fixed cost + average variable cost
Average Cost Formula - ✔✔✔-total cost/output
average revenue - ✔✔✔-total revenue divided by output; in a single-product firm, average
revenue equals the price of the product
average revenue formula - ✔✔✔-total revenue / output
barriers to entry - ✔✔✔-business practices or conditions that make it difficult for new firms to
enter the market
Capital good - ✔✔✔-A good which is used in the production of other goods or services. Also
known as a producer good.
Capital productivity - ✔✔✔-Output per unit of capital
Competing supply - ✔✔✔-when raw materials are used to produce one good they cannot be
used to produce another good
Complementary good - ✔✔✔-A good in joint demand, or a good which is demanded at the
same time as another
Composite demand - ✔✔✔-Demand for a good which has more than one use. E.g Demand for
wheat which can be used in biofuel and food.
, Economics AQA A Level Paper 1 Study Guide Exam with Questions and Answers
– 100% Solved
Conditions of demand - ✔✔✔-a determinant of demand, other than the good's own price, that
fixes the position of the demand curve
Conditions of supply - ✔✔✔-determinants of supply, other than the good's own price, that fix
the position of the supply curve
Consumer good - ✔✔✔-A good which is consumed by individuals or households to satisfy their
needs or wants.
consumer sovereignty - ✔✔✔-Through exercising their spending power, consumers collectively
determine what is produced in a market. Consumer sovereignty is strongest in a perfectly
competitive market
Cross Elasticity of Demand (XED) - ✔✔✔-The responsiveness of the demand for a product
following a change in price in another product.
cross elasticity of demand formula - ✔✔✔-% change in quantity demanded of product X / %
change in price of product Y
decrease in demand - ✔✔✔-a leftward shift of the demand curve
Decrease in supply - ✔✔✔-a leftward shift of the supply curve
Derived demand - ✔✔✔-Demand for a good which is an input into the production of another
good. E.g machinery to help produce consumer goods.
Diseconomy of scale - ✔✔✔-as output increases, long-run average cost rises
