Economics Aqa paper 2
1. What are the roles of money: medium of exchange, store of value, unit of
account and a mean of deferred payment
2. What is meant by money being a mean of deferred payment: Allows it to
be widely accepted way to value a debt allowing you to acquire goods now
and pay in the future
3. What is meant by money being a store of value: Referring to an asset that
it's value can be retrieved at a later date as money allows purchasing power to
be transferred from the present to the future
4. What is meant by money being a unit of account: Allows money to give
thing a value that can be expressed in an understandable way e.g. a bar of
chocolate is £3
5. What are the criteria of money: Durable
Portable
Must be divisible
Accepted by everyone
Limited in quantity
Complex enough to prevent counterfeit
6. What is economic growth: Growth in GDP over time
7. What is GDP: The total market value of goods and services produced in an
economy in a year
8. How is the rate of economic growth calculated?: Rate of Economic growth
=
(change in GDP between year 1 and year 2 /GDP in year 1) x 100
9. How do you calculate GDP per capita: GDP divided by population
10. What does GDP per capita measure?: The average income of each person
in the country and helps to compare living standards between countries
11. What is real GDP: GDP adjusted for inflation
12. What are causes of economic growth: Investment in capital goods
Technological development
Education and training
Labour productivity
The size of the workforce
Natural resources
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, 13. What are benefits of economic growth: a rise in material living standards, a
reduction in poverty, a rise in the welfare of the population, a rise in
employment and a fall in unemployment
14. What are the costs of economic growth: -environmental costs
-inflation
-inequalities in income and wealth
-Loss of renewable resources
15 What are the main government objectives: A balance of payments
Low levels of unemployment
Sustainable levels of economic growth
Price stability
16. What is the reward for labour: Wages
17. What is unemployment?: It occurs when workers who are willing and able to
work at the current wage rate arent in work
18. What is the labour force: All the people in work and those that are registered
as unemployed
19. What type of unemployment is it when people are moving between jobs:
-
Frictional unemployment
20. How is the rate of unemployment calculated?: No of unemployed/ labour
force x100
21. How can unemployment be measured: Claimant count and labour force
survey
22. What is seasonal unemployment?: Results from changes in demand for
labour at different parts
23. What is structural unemployment: About the immobility of labour where
either there is occupational immobile and geographical immobile .
Occupational immobile is when workers have skills that can't be transferred to
other jobs and the industry they are in.
Geographically immobile is when workers cannot move to seek work due to
changes in the industry they are in
24. What is cyclical unemployment?: When there is a lack of demand in for
labour due to a fall in aggregate demand
25. What type of demand is the demand for labour?: derived demand
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1. What are the roles of money: medium of exchange, store of value, unit of
account and a mean of deferred payment
2. What is meant by money being a mean of deferred payment: Allows it to
be widely accepted way to value a debt allowing you to acquire goods now
and pay in the future
3. What is meant by money being a store of value: Referring to an asset that
it's value can be retrieved at a later date as money allows purchasing power to
be transferred from the present to the future
4. What is meant by money being a unit of account: Allows money to give
thing a value that can be expressed in an understandable way e.g. a bar of
chocolate is £3
5. What are the criteria of money: Durable
Portable
Must be divisible
Accepted by everyone
Limited in quantity
Complex enough to prevent counterfeit
6. What is economic growth: Growth in GDP over time
7. What is GDP: The total market value of goods and services produced in an
economy in a year
8. How is the rate of economic growth calculated?: Rate of Economic growth
=
(change in GDP between year 1 and year 2 /GDP in year 1) x 100
9. How do you calculate GDP per capita: GDP divided by population
10. What does GDP per capita measure?: The average income of each person
in the country and helps to compare living standards between countries
11. What is real GDP: GDP adjusted for inflation
12. What are causes of economic growth: Investment in capital goods
Technological development
Education and training
Labour productivity
The size of the workforce
Natural resources
1/7
, 13. What are benefits of economic growth: a rise in material living standards, a
reduction in poverty, a rise in the welfare of the population, a rise in
employment and a fall in unemployment
14. What are the costs of economic growth: -environmental costs
-inflation
-inequalities in income and wealth
-Loss of renewable resources
15 What are the main government objectives: A balance of payments
Low levels of unemployment
Sustainable levels of economic growth
Price stability
16. What is the reward for labour: Wages
17. What is unemployment?: It occurs when workers who are willing and able to
work at the current wage rate arent in work
18. What is the labour force: All the people in work and those that are registered
as unemployed
19. What type of unemployment is it when people are moving between jobs:
-
Frictional unemployment
20. How is the rate of unemployment calculated?: No of unemployed/ labour
force x100
21. How can unemployment be measured: Claimant count and labour force
survey
22. What is seasonal unemployment?: Results from changes in demand for
labour at different parts
23. What is structural unemployment: About the immobility of labour where
either there is occupational immobile and geographical immobile .
Occupational immobile is when workers have skills that can't be transferred to
other jobs and the industry they are in.
Geographically immobile is when workers cannot move to seek work due to
changes in the industry they are in
24. What is cyclical unemployment?: When there is a lack of demand in for
labour due to a fall in aggregate demand
25. What type of demand is the demand for labour?: derived demand
2/7
