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
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, Economics Aqa paper 2
The size of the workforce
Natural resources
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
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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
1/7
, Economics Aqa paper 2
The size of the workforce
Natural resources
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
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