Economics Aqa A level Paper 1
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1. positive statement: An objective statement that can be tested against facts to be
declared either true or false.
2. normative statement: A subjective opinion, or value judgement, that cannot be
declared either true or false.
3. Need: something essential for survival such as food or medical care
4. Want: something that people desire but that is not necessary for human survival.
5. Economic welfare: The economic well-being of an individual, a group within
society, or an economy.
6. Production: a process, or set of processes, that converts inputs into output of
goods.
7. Capital good: A good which is used in the production of other goods or services.
Also known as a producer good.
8. Consumer good: A good which is consumed by individuals or households to
satisfy their needs or wants.
9. factors of production: Inputs the productive process such as land, labour, capital
and enterprise.
10. Fundamental economic problem: how best to make decisions about the allo-
cation of scarce resources among competing uses so as to improve and maximise
human happiness and welfare.
11. Scarcity: results from the fact that people have unlimited wants but resources
to meet these wants are limited. In essence, people would like to consume more
goods and services than the economy is able to produce with its limited resources.
12. opportunity cost: the cost of giving up the next best alternative
13. Market: A situation where buyers and sellers come together to engage in trade.
14. Equilibrium price: the price at which planned demand for a good or service
exactly equals planned supply.
15. Effective demand: The desire for a good or service backed by an ability to pay
16. market demand: The quantity of a good or service that all the consumers in a
market are willing and able to buy at different market prices.
17. Conditions of demand: a determinant of demand, other than the good's own
price, that fixes the position of the demand curve
18. increase in demand: a rightward shift of the demand curve
19. decrease in demand: a leftward shift of the demand curve
20. Normal good: a good for which the demand increases as income rises and
decreases as income falls
21. Inferior good: A good for which demand decreases as income rises and de-
mand increases as income falls. For example as income rises demand for bud travel
falls as more people can afford cars.
1/4
Study online at https://quizlet.com/_bidq6m
1. positive statement: An objective statement that can be tested against facts to be
declared either true or false.
2. normative statement: A subjective opinion, or value judgement, that cannot be
declared either true or false.
3. Need: something essential for survival such as food or medical care
4. Want: something that people desire but that is not necessary for human survival.
5. Economic welfare: The economic well-being of an individual, a group within
society, or an economy.
6. Production: a process, or set of processes, that converts inputs into output of
goods.
7. Capital good: A good which is used in the production of other goods or services.
Also known as a producer good.
8. Consumer good: A good which is consumed by individuals or households to
satisfy their needs or wants.
9. factors of production: Inputs the productive process such as land, labour, capital
and enterprise.
10. Fundamental economic problem: how best to make decisions about the allo-
cation of scarce resources among competing uses so as to improve and maximise
human happiness and welfare.
11. Scarcity: results from the fact that people have unlimited wants but resources
to meet these wants are limited. In essence, people would like to consume more
goods and services than the economy is able to produce with its limited resources.
12. opportunity cost: the cost of giving up the next best alternative
13. Market: A situation where buyers and sellers come together to engage in trade.
14. Equilibrium price: the price at which planned demand for a good or service
exactly equals planned supply.
15. Effective demand: The desire for a good or service backed by an ability to pay
16. market demand: The quantity of a good or service that all the consumers in a
market are willing and able to buy at different market prices.
17. Conditions of demand: a determinant of demand, other than the good's own
price, that fixes the position of the demand curve
18. increase in demand: a rightward shift of the demand curve
19. decrease in demand: a leftward shift of the demand curve
20. Normal good: a good for which the demand increases as income rises and
decreases as income falls
21. Inferior good: A good for which demand decreases as income rises and de-
mand increases as income falls. For example as income rises demand for bud travel
falls as more people can afford cars.
1/4
