2022 Edition
EXCESS LEARNING
LEARNING
exam success at your fingertips
A-LEVEL ECONOMICS
QUESTIONSEdexcel A
, This workbook includes questions from past exam
papers. They cover all 4 themes, and are arranged
according to topic and in order of appearance in the
specification.
A detailed table of contents has been provided to you.
You should attempt each question 2-3x. Repetition is
key to success.
Focus on questions that cover topics you’re weakest
in first. Once you become more confident with these,
move on to attempt the rest of the workbook.
Key Questions to Note:
• Questions marked with an asterisk (*) are examined
regularly and have appear in exams each year.
• Questions marked with two asterisks (**) indicate
questions tested rigourously, sometimes multple
times within the same paper.
• Solutions to these questions can be found within the
community section on the website:
www.excesslearning.com
1
,CONTENTS
Theme 1:
Introduction to Markets and Market Failure
1.1 Nature of economics
a. Positive and Normative Statements 7
b. Free market economies, mixed economy and command 7
economy
c. Specialisation and division of labour 8
d. Production possibility frontiers * 9
1.2 How markets work *
a. Demand and Supply ** 12
b. Diminishing Marginal Utility 17
c. Price Elasticity of Demand (PED) 18
d. Cross Price Elasticity of Demand (XED) 22
e. Income Elasticity of Demand (YED) 24
f. Price Elasticity of Supply (PES) 25
g. Price Mechanism 26
h. Consumer Surplus 26
i. Producer Surplus 28
j. Taxes ** 28
k. Subsidies ** 32
1.3 Market failure *
a. Externalities 36
b. Public goods 41
c. Information gaps 42
2
, 1.4. Government Intervention **
a. Government intervention in markets
• Indirect taxation (ad valorem and specific) - see 1.2
above
• Subsidies - see 1.2 above
• Maximum and minimum prices 44
b. Other methods of government intervention:
• Trade pollution permits
• State provision of public goods 47
• Provision of information 48
• Regulation 48
c. Government failure
Theme 2:
The UK Economy - Performance and Policies
2.1 Measures of economic performance
a. Growth (GDP, GNI, GNP, PPP) 49
b. Inflation * 56
c. Unemployment 67
d. Balance of Payments 73
2.2 Aggregate demand (AD) ** 78
2.3 Aggregate supply (AS) ** 78
2.4. National Income
a. Circular flow of income 88
b. The multiplier 90
2.5. Economic Growth
a. Output gaps 95
b. Trade (business) cycles 95
3
EXCESS LEARNING
LEARNING
exam success at your fingertips
A-LEVEL ECONOMICS
QUESTIONSEdexcel A
, This workbook includes questions from past exam
papers. They cover all 4 themes, and are arranged
according to topic and in order of appearance in the
specification.
A detailed table of contents has been provided to you.
You should attempt each question 2-3x. Repetition is
key to success.
Focus on questions that cover topics you’re weakest
in first. Once you become more confident with these,
move on to attempt the rest of the workbook.
Key Questions to Note:
• Questions marked with an asterisk (*) are examined
regularly and have appear in exams each year.
• Questions marked with two asterisks (**) indicate
questions tested rigourously, sometimes multple
times within the same paper.
• Solutions to these questions can be found within the
community section on the website:
www.excesslearning.com
1
,CONTENTS
Theme 1:
Introduction to Markets and Market Failure
1.1 Nature of economics
a. Positive and Normative Statements 7
b. Free market economies, mixed economy and command 7
economy
c. Specialisation and division of labour 8
d. Production possibility frontiers * 9
1.2 How markets work *
a. Demand and Supply ** 12
b. Diminishing Marginal Utility 17
c. Price Elasticity of Demand (PED) 18
d. Cross Price Elasticity of Demand (XED) 22
e. Income Elasticity of Demand (YED) 24
f. Price Elasticity of Supply (PES) 25
g. Price Mechanism 26
h. Consumer Surplus 26
i. Producer Surplus 28
j. Taxes ** 28
k. Subsidies ** 32
1.3 Market failure *
a. Externalities 36
b. Public goods 41
c. Information gaps 42
2
, 1.4. Government Intervention **
a. Government intervention in markets
• Indirect taxation (ad valorem and specific) - see 1.2
above
• Subsidies - see 1.2 above
• Maximum and minimum prices 44
b. Other methods of government intervention:
• Trade pollution permits
• State provision of public goods 47
• Provision of information 48
• Regulation 48
c. Government failure
Theme 2:
The UK Economy - Performance and Policies
2.1 Measures of economic performance
a. Growth (GDP, GNI, GNP, PPP) 49
b. Inflation * 56
c. Unemployment 67
d. Balance of Payments 73
2.2 Aggregate demand (AD) ** 78
2.3 Aggregate supply (AS) ** 78
2.4. National Income
a. Circular flow of income 88
b. The multiplier 90
2.5. Economic Growth
a. Output gaps 95
b. Trade (business) cycles 95
3
