AS-LEVEL EDEXCEL ECONOMICS A PAPER EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Absolute advantage - (answer)When a country's output of a product per unit of input is greater than
that of any other country.
Absolute poverty - (answer)When a person does not have the income or wealth to fulfil their basic
needs.
Aggregate Demand (AD) - (answer)The total demand/spending in an economy at a given price level over
a given period of time. Made up of consumption, investment, government spending and net external
demand.
Aggregate Supply (AS) - (answer)The total amount of goods and services that can be supplied in an
economy at a given price level over a given period of time.
Aid - (answer)The transfer of resources from one country to another.
Allocative efficiency - (answer)Where the price of a good is equal to the price consumers are willing to
pay. This occurs when all resources are allocated efficiently.
Asymmetric information - (answer)Where buyers have more information than sellers in a market, or vice
versa.
Automatic stabilisers - (answer)Parts of fiscal policy that automatically react to changes in the economic
cycle.
Average Cost (AC) - (answer)The cost of production per unit of output.
Average Revenue (AR) - (answer)The revenue per unit sold.
Backward vertical integration - (answer)Where a firm merges with or takes over a firm further back in
the production process.
,AS-LEVEL EDEXCEL ECONOMICS A PAPER EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Balance of payments - (answer)A record of the international transactions of an economy.
Bank rate - (answer)The official rate of interest set by the central bank (e.g. by the Monetary Policy
Committee of the Bank of England)
Barriers to entry - (answer)Potential difficulties that make it hard for firms to enter a market.
Barriers to exit - (answer)Potential difficulties that make it hard for firms to leave a market.
Black market - (answer)Economic activity that occurs without taxation and government intervention.
Budget deficit - (answer)When government spending exceeds tax revenues.
Budget surplus - (answer)When tax revenues exceed government spending.
Capital account of the balance of payments - (answer)A part of the balance of payments that shows
transfers of non-monetary and fixed assets into and out of the economy.
Cartel - (answer)A group of products who collude to limit output in order to keep prices high.
Central bank - (answer)The institution responsible for issuing banknotes in an economy, acting as a
lender of last resort, and implementing monetary policy.
Ceteris paribus - (answer)All other things remaining equal
Circular flow of income - (answer)The flow of national output, income and expenditure between firms
and households.
,AS-LEVEL EDEXCEL ECONOMICS A PAPER EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Command economy - (answer)An economy where only the government determines the allocation of
resources.
Comparative advantage - (answer)When the opportunity cost of producing a good or service is lower
than that of any other country.
Competition policy - (answer)Government policy aimed at reducing monopoly power in order to
increase efficiency and to ensure fairness for consumers.
Concentration ratio - (answer)A measure of the dominance of firms in a market.
Conglomerate integration - (answer)Where a firm merges with or takes over a firm in a completely
different market.
Consumer surplus - (answer)The difference between the price a consumer pays and the price they were
willing to pay.
Consumption - (answer)The purchase of goods and services.
Contestability - (answer)The degree to which new entrants find it easy to enter the market.
Cost-push inflation - (answer)Inflation caused by rising costs of production.
Cross elasticity of demand (XED) - (answer)A measure of the responsiveness of demand of one
good/service to a change in price of another good/service.
Current account of the balance of payments - (answer)A part of the balance of payments that consists
of: trade in goods, trade in services, primary income and secondary income.
, AS-LEVEL EDEXCEL ECONOMICS A PAPER EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Cyclical unemployment - (answer)Unemployment caused by a lack of demand in the economy.
Deflation - (answer)The sustained fall in the average price of goods and services in an economy over a
period of time.
Demand-pull inflation - (answer)Inflation caused by increased demand in the economy.
Demand-side policy - (answer)Government policy that aims to alter aggregate demand in the economy.
Demerger - (answer)Where a firm sells of a part/parts of its business to create separate firms.
Deregulation - (answer)Removing government legislation that could restrict competition.
Derived demand - (answer)The demand for a good or service due to its use in making another good or
service.
Developed countries - (answer)Relatively rich, industrialised countries with a high GDP per capita.
Developing countries - (answer)Relatively poor countries that tend to rely on labour-intensive industries,
with a low GDP per capita.
Diseconomies of scale - (answer)Where average cost rises as output rises.
Disinflation - (answer)A fall in the rate of inflation.
Disposable income - (answer)Income available for households to spend after their tax obligations are
fulfilled.
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Absolute advantage - (answer)When a country's output of a product per unit of input is greater than
that of any other country.
Absolute poverty - (answer)When a person does not have the income or wealth to fulfil their basic
needs.
Aggregate Demand (AD) - (answer)The total demand/spending in an economy at a given price level over
a given period of time. Made up of consumption, investment, government spending and net external
demand.
Aggregate Supply (AS) - (answer)The total amount of goods and services that can be supplied in an
economy at a given price level over a given period of time.
Aid - (answer)The transfer of resources from one country to another.
Allocative efficiency - (answer)Where the price of a good is equal to the price consumers are willing to
pay. This occurs when all resources are allocated efficiently.
Asymmetric information - (answer)Where buyers have more information than sellers in a market, or vice
versa.
Automatic stabilisers - (answer)Parts of fiscal policy that automatically react to changes in the economic
cycle.
Average Cost (AC) - (answer)The cost of production per unit of output.
Average Revenue (AR) - (answer)The revenue per unit sold.
Backward vertical integration - (answer)Where a firm merges with or takes over a firm further back in
the production process.
,AS-LEVEL EDEXCEL ECONOMICS A PAPER EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Balance of payments - (answer)A record of the international transactions of an economy.
Bank rate - (answer)The official rate of interest set by the central bank (e.g. by the Monetary Policy
Committee of the Bank of England)
Barriers to entry - (answer)Potential difficulties that make it hard for firms to enter a market.
Barriers to exit - (answer)Potential difficulties that make it hard for firms to leave a market.
Black market - (answer)Economic activity that occurs without taxation and government intervention.
Budget deficit - (answer)When government spending exceeds tax revenues.
Budget surplus - (answer)When tax revenues exceed government spending.
Capital account of the balance of payments - (answer)A part of the balance of payments that shows
transfers of non-monetary and fixed assets into and out of the economy.
Cartel - (answer)A group of products who collude to limit output in order to keep prices high.
Central bank - (answer)The institution responsible for issuing banknotes in an economy, acting as a
lender of last resort, and implementing monetary policy.
Ceteris paribus - (answer)All other things remaining equal
Circular flow of income - (answer)The flow of national output, income and expenditure between firms
and households.
,AS-LEVEL EDEXCEL ECONOMICS A PAPER EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Command economy - (answer)An economy where only the government determines the allocation of
resources.
Comparative advantage - (answer)When the opportunity cost of producing a good or service is lower
than that of any other country.
Competition policy - (answer)Government policy aimed at reducing monopoly power in order to
increase efficiency and to ensure fairness for consumers.
Concentration ratio - (answer)A measure of the dominance of firms in a market.
Conglomerate integration - (answer)Where a firm merges with or takes over a firm in a completely
different market.
Consumer surplus - (answer)The difference between the price a consumer pays and the price they were
willing to pay.
Consumption - (answer)The purchase of goods and services.
Contestability - (answer)The degree to which new entrants find it easy to enter the market.
Cost-push inflation - (answer)Inflation caused by rising costs of production.
Cross elasticity of demand (XED) - (answer)A measure of the responsiveness of demand of one
good/service to a change in price of another good/service.
Current account of the balance of payments - (answer)A part of the balance of payments that consists
of: trade in goods, trade in services, primary income and secondary income.
, AS-LEVEL EDEXCEL ECONOMICS A PAPER EXAM WITH QUESTIONS AND CORRECT
VERIFIED ANSWERS GRADED A+ GUARANTEED 100% PASS
Cyclical unemployment - (answer)Unemployment caused by a lack of demand in the economy.
Deflation - (answer)The sustained fall in the average price of goods and services in an economy over a
period of time.
Demand-pull inflation - (answer)Inflation caused by increased demand in the economy.
Demand-side policy - (answer)Government policy that aims to alter aggregate demand in the economy.
Demerger - (answer)Where a firm sells of a part/parts of its business to create separate firms.
Deregulation - (answer)Removing government legislation that could restrict competition.
Derived demand - (answer)The demand for a good or service due to its use in making another good or
service.
Developed countries - (answer)Relatively rich, industrialised countries with a high GDP per capita.
Developing countries - (answer)Relatively poor countries that tend to rely on labour-intensive industries,
with a low GDP per capita.
Diseconomies of scale - (answer)Where average cost rises as output rises.
Disinflation - (answer)A fall in the rate of inflation.
Disposable income - (answer)Income available for households to spend after their tax obligations are
fulfilled.
