Economics Aqa A level Paper 1 Study Guide
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1). Positive statement
Ans: An objective statement that can be tested against facts to be declared either true
or false.
2). Normative statement
Ans: A subjective opinion, or value judgement, that cannot be declared either true or
false.
3). Need
Ans: something essential for survival such as food or medical care
4). Want
Ans: something that people desire but that is not necessary for human survival.
5). Economic welfare
Ans: The economic well-being of an individual, a group within society, or an economy.
6). Production
Ans: a process, or set of processes, that converts inputs into output of goods.
7). Capital good
Ans: A good which is used in the production of other goods or services. Also known as
a producer good.
8). Consumer good
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, Ans: A good which is consumed by individuals or households to satisfy their needs or
wants.
9). Factors of production
Ans: Inputs the productive process such as land, labour, capital and enterprise.
10). Fundamental economic problem
Ans: how best to make decisions about the allocation of scarce resources among
competing uses so as to improve and maximise human happiness and welfare.
11). Scarcity
Ans: 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.
12). Opportunity cost
Ans: the cost of giving up the next best alternative
13). Market
Ans: A situation where buyers and sellers come together to engage in trade.
14). Equilibrium price
Ans: the price at which planned demand for a good or service exactly equals planned
supply.
15). Effective demand
Ans: The desire for a good or service backed by an ability to pay
16). Market demand
Ans: The quantity of a good or service that all the consumers in a market are willing
and able to buy at different market prices.
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Rated A+
1). Positive statement
Ans: An objective statement that can be tested against facts to be declared either true
or false.
2). Normative statement
Ans: A subjective opinion, or value judgement, that cannot be declared either true or
false.
3). Need
Ans: something essential for survival such as food or medical care
4). Want
Ans: something that people desire but that is not necessary for human survival.
5). Economic welfare
Ans: The economic well-being of an individual, a group within society, or an economy.
6). Production
Ans: a process, or set of processes, that converts inputs into output of goods.
7). Capital good
Ans: A good which is used in the production of other goods or services. Also known as
a producer good.
8). Consumer good
PaperStoc.com Page 1 of 10
, Ans: A good which is consumed by individuals or households to satisfy their needs or
wants.
9). Factors of production
Ans: Inputs the productive process such as land, labour, capital and enterprise.
10). Fundamental economic problem
Ans: how best to make decisions about the allocation of scarce resources among
competing uses so as to improve and maximise human happiness and welfare.
11). Scarcity
Ans: 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.
12). Opportunity cost
Ans: the cost of giving up the next best alternative
13). Market
Ans: A situation where buyers and sellers come together to engage in trade.
14). Equilibrium price
Ans: the price at which planned demand for a good or service exactly equals planned
supply.
15). Effective demand
Ans: The desire for a good or service backed by an ability to pay
16). Market demand
Ans: The quantity of a good or service that all the consumers in a market are willing
and able to buy at different market prices.
PaperStoc.com Page 2 of 10
