AQA AS LEVEL MAY JUNE 2025 ECONOMICS PAPER 1
QUESTION PAPER
positive statement - An objective statement that can be tested against facts to be declared either true or
false.
normative statement - A subjective opinion, or value judgement, that cannot be declared either true or
false.
Need - something essential for survival such as food or medical care
Want - something that people desire but that is not necessary for human survival.
Economic welfare - The economic well-being of an individual, a group within society, or an economy.
Production - a process, or set of processes, that converts inputs into output of goods.
Capital good - A good which is used in the production of other goods or services. Also known as a
producer good.
Consumer good - A good which is consumed by individuals or households to satisfy their needs or wants.
factors of production - Inputs the productive process such as land, labor, capital and enterprise.
Fundamental economic problem - how best to make decisions about the allocation of scarce resources
among competing uses so as to improve and maximize human happiness and welfare.
Scarcity - results from the fact that people have unlimited wants but resources to meet these wants are
limited. In essence, people would like to consume more goods and services than the economy is able to
produce with its limited resources.
opportunity cost - the cost of giving up the next best alternative
, Market - A situation where buyers and sellers come together to engage in trade.
Equilibrium price - the price at which planned demand for a good or service exactly equals planned
supply.
Effective demand - The desire for a good or service backed by an ability to pay
market demand - The quantity of a good or service that all the consumers in a market are willing and
able to buy at different market prices.
Conditions of demand - a determinant of demand, other than the good's own price, that fixes the
position of the demand curve
increase in demand - a rightward shift of the demand curve
decrease in demand - a leftward shift of the demand curve
Normal good - a good for which the demand increases as income rises and decreases as income falls
Inferior good - A good for which demand decreases as income rises and demand increases as income
falls. For example, as income rises demand for bud travel falls as more people can afford cars.
Elasticity - The proportionate responsiveness of a second variable to an initial change in the first
variable.
price elasticity of demand - The responsiveness of the quantity demanded of a good to a change in price.
Percentage change formula - change/original x 100
QUESTION PAPER
positive statement - An objective statement that can be tested against facts to be declared either true or
false.
normative statement - A subjective opinion, or value judgement, that cannot be declared either true or
false.
Need - something essential for survival such as food or medical care
Want - something that people desire but that is not necessary for human survival.
Economic welfare - The economic well-being of an individual, a group within society, or an economy.
Production - a process, or set of processes, that converts inputs into output of goods.
Capital good - A good which is used in the production of other goods or services. Also known as a
producer good.
Consumer good - A good which is consumed by individuals or households to satisfy their needs or wants.
factors of production - Inputs the productive process such as land, labor, capital and enterprise.
Fundamental economic problem - how best to make decisions about the allocation of scarce resources
among competing uses so as to improve and maximize human happiness and welfare.
Scarcity - results from the fact that people have unlimited wants but resources to meet these wants are
limited. In essence, people would like to consume more goods and services than the economy is able to
produce with its limited resources.
opportunity cost - the cost of giving up the next best alternative
, Market - A situation where buyers and sellers come together to engage in trade.
Equilibrium price - the price at which planned demand for a good or service exactly equals planned
supply.
Effective demand - The desire for a good or service backed by an ability to pay
market demand - The quantity of a good or service that all the consumers in a market are willing and
able to buy at different market prices.
Conditions of demand - a determinant of demand, other than the good's own price, that fixes the
position of the demand curve
increase in demand - a rightward shift of the demand curve
decrease in demand - a leftward shift of the demand curve
Normal good - a good for which the demand increases as income rises and decreases as income falls
Inferior good - A good for which demand decreases as income rises and demand increases as income
falls. For example, as income rises demand for bud travel falls as more people can afford cars.
Elasticity - The proportionate responsiveness of a second variable to an initial change in the first
variable.
price elasticity of demand - The responsiveness of the quantity demanded of a good to a change in price.
Percentage change formula - change/original x 100
