age 1 of 454
Edexcel A-Level Economics FINAL EXAM PREP
2025/2026 COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
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.
,age 2 of 454
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.
,age 3 of 454
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.
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)
, age 4 of 454
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.
Edexcel A-Level Economics FINAL EXAM PREP
2025/2026 COMPLETE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<BRAND NEW VERSION>
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.
,age 2 of 454
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.
,age 3 of 454
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.
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)
, age 4 of 454
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.
