EdExcEl A-lEvEl Economics PAPEr 3 ExAm
with AccurAtE AnswErs & ExPlAnAtions |
GuArAntEEd PAss | lAtEst vErsion 2026
1. Demand - ANSWER The quantity of a good/service that consumers are
willing and able to buy at a given price in a given time period.
2. Collusion - ANSWER two or more businesses agreeing to a restrictive
practice such as price fixing.
3. Contract of Employment - ANSWER A written agreement between an
employer and an employee in which each has certain obligations
4. Discrimination - ANSWER favouring one person over another on grounds
such as race, religion or sexuality.
5. employment tribunal - ANSWER A court that deals with cases involving
disputes between employers and employees
6. National minimum wage - ANSWER A wage rate set by the government
below which it is illegal to pay people at work
7. unfair dismissal - ANSWER The illegal dismissal of a worker by a business
8. Equal Pay Act - ANSWER made it illegal for employers to pay female
workers less than men for the same job
,9. Colluding - ANSWER In business, where several businesses (or countries)
make agreements among themselves which benefit them at the expense of
either rival businesses or customers
10.Market Structures - ANSWER The characteristics of a market, such as the
size of the barriers to entry to the market, the number of businesses in the
market or whether they produce identical products, which determine the
behaviour of businesses within the market
11.Niche Market - ANSWER A smaller part of a larger market in which
customers have more specific needs and wants
12.Mass Market - ANSWER all possible customers in a market, regardless of
the differences in their specific needs and wants
13.Investment Appraisal - ANSWER The evaluation of an investment project to
determine whether or not it is likely to be worthwhile
14.Average Rate of Return (ARR) - ANSWER Measures the annual net return
on an investment as a percentage of its initial cost
15.Capital Cost - ANSWER The amount of money spent when setting up a new
venture
16.Discounted Cash Flow (DCF) - ANSWER A method of investment appraisal
that takes interest rates into account by calculating the present value of
future income
,17.Investment - ANSWER the purchase of new capital goods
18.Net Cash Flow - ANSWER cash inflows - cash outflows
19.Net Present Value (NPV) - ANSWER the sum of the present values of
expected future cash flows from an investment, minus the cost of that
investment
20.Payback Period - ANSWER the amount of time it takes to recover the initial
investment of a business
21.Present Value - ANSWER The value today of a sum of money available in
the future
22.Average Rate of Return Formula - ANSWER Net return (profit) per annum /
Capital Outlay (cost) x 100
23.Ethical Considerations - ANSWER the social and environmental
consequences of a financial decision
24.Risk - ANSWER Degree of uncertainty of return on an asset; in business, the
likelihood of loss or reduced profit.
25.Shareholder - ANSWER A person who invests in a company by buying
shares and is a partial owner
, 26.Dividend - ANSWER A financial reward paid out to shareholders for their
investment in the company. It is often (but not always) paid annually and is
taken from a small percentage of the company profits.
27.Stakeholder - ANSWER An individual, group, or organization who hold a
perceived interest in the activities of a company e.g. local residents,
governments or financial institutions.
28.External Stakeholders - ANSWER Groups outside a business with an
interest in its activities e.g. local community
29.Internal Stakeholders - ANSWER Groups inside a business with an interest
in its activities e.g. employees and managers
30.shareholder value - ANSWER A measure of company performance that
combines the size of dividends with the share price
31.Stakeholder conflict - ANSWER When different stakeholder groups have
different aims and objectives, which can be difficult for a business to satisfy
at the same time.
32.Stakeholder Approach - ANSWER firms work to meet the demands of
multiple stakeholders—employees, suppliers, and the community.
33.Shareholder Approach - ANSWER the firm exists to maximize the wealth of
its owners e.g. shareholders
with AccurAtE AnswErs & ExPlAnAtions |
GuArAntEEd PAss | lAtEst vErsion 2026
1. Demand - ANSWER The quantity of a good/service that consumers are
willing and able to buy at a given price in a given time period.
2. Collusion - ANSWER two or more businesses agreeing to a restrictive
practice such as price fixing.
3. Contract of Employment - ANSWER A written agreement between an
employer and an employee in which each has certain obligations
4. Discrimination - ANSWER favouring one person over another on grounds
such as race, religion or sexuality.
5. employment tribunal - ANSWER A court that deals with cases involving
disputes between employers and employees
6. National minimum wage - ANSWER A wage rate set by the government
below which it is illegal to pay people at work
7. unfair dismissal - ANSWER The illegal dismissal of a worker by a business
8. Equal Pay Act - ANSWER made it illegal for employers to pay female
workers less than men for the same job
,9. Colluding - ANSWER In business, where several businesses (or countries)
make agreements among themselves which benefit them at the expense of
either rival businesses or customers
10.Market Structures - ANSWER The characteristics of a market, such as the
size of the barriers to entry to the market, the number of businesses in the
market or whether they produce identical products, which determine the
behaviour of businesses within the market
11.Niche Market - ANSWER A smaller part of a larger market in which
customers have more specific needs and wants
12.Mass Market - ANSWER all possible customers in a market, regardless of
the differences in their specific needs and wants
13.Investment Appraisal - ANSWER The evaluation of an investment project to
determine whether or not it is likely to be worthwhile
14.Average Rate of Return (ARR) - ANSWER Measures the annual net return
on an investment as a percentage of its initial cost
15.Capital Cost - ANSWER The amount of money spent when setting up a new
venture
16.Discounted Cash Flow (DCF) - ANSWER A method of investment appraisal
that takes interest rates into account by calculating the present value of
future income
,17.Investment - ANSWER the purchase of new capital goods
18.Net Cash Flow - ANSWER cash inflows - cash outflows
19.Net Present Value (NPV) - ANSWER the sum of the present values of
expected future cash flows from an investment, minus the cost of that
investment
20.Payback Period - ANSWER the amount of time it takes to recover the initial
investment of a business
21.Present Value - ANSWER The value today of a sum of money available in
the future
22.Average Rate of Return Formula - ANSWER Net return (profit) per annum /
Capital Outlay (cost) x 100
23.Ethical Considerations - ANSWER the social and environmental
consequences of a financial decision
24.Risk - ANSWER Degree of uncertainty of return on an asset; in business, the
likelihood of loss or reduced profit.
25.Shareholder - ANSWER A person who invests in a company by buying
shares and is a partial owner
, 26.Dividend - ANSWER A financial reward paid out to shareholders for their
investment in the company. It is often (but not always) paid annually and is
taken from a small percentage of the company profits.
27.Stakeholder - ANSWER An individual, group, or organization who hold a
perceived interest in the activities of a company e.g. local residents,
governments or financial institutions.
28.External Stakeholders - ANSWER Groups outside a business with an
interest in its activities e.g. local community
29.Internal Stakeholders - ANSWER Groups inside a business with an interest
in its activities e.g. employees and managers
30.shareholder value - ANSWER A measure of company performance that
combines the size of dividends with the share price
31.Stakeholder conflict - ANSWER When different stakeholder groups have
different aims and objectives, which can be difficult for a business to satisfy
at the same time.
32.Stakeholder Approach - ANSWER firms work to meet the demands of
multiple stakeholders—employees, suppliers, and the community.
33.Shareholder Approach - ANSWER the firm exists to maximize the wealth of
its owners e.g. shareholders
