AQA A Level Economics Study Bundle Updated 2024!!.

Positive Statement - Answer A statement that can be tested to see if it's correct or not Normative Statement - Answer A statement that has a value judgement and can't be refuted by looking at evidence Need - Answer Something necessary for human survival Want - Answer Something tha...

Methods of dealing with over-consumption/under consumption of merit/demerit goods - Answer 1. Information Provision Left shift in demand long term fashion and trends Outreach may not be extensive enough May not impact e.g. demerit, inferior goods-necessary when people poor/habit forming goods ...

Allocative Efficiency - Answer Occurs when the available economic resources are used to produce the combination of goods and services that best matches people's tastes and preferences Positive Statements - Answer A statement of fact that can be tested to see if it is incorrect or correct ...

Composite Demand - Answer when a good is demanded for two or more distinct uses Derived Demand - Answer when the demand for one good is the result of (or derived from) another good Inferior Good - Answer a good where demand falls as income increase i.e negative YeD Normal Good - Answe...

perfect competition - Answer a market structure in which a large number of firms all produce the same product Perfectly competitive market Characteristics - Answer 1. infinite number of suppler and consumers 2. each firm is a price taker 3. consumers have perfect information 4. producer...

Economic Activity - Answer The combination of resources to produce an output of goods or services Resources ( = factors of production) - Answer Inputs to the production process: land, labour, capital and enterprise Land - Answer Resources found in the natural environment Labour - Answ...

macroeconomics - Answer involves the study of the whole economy at the aggregate level policy objective - Answer a target or goal that policy-makers aim to 'hit' short-run economic growth - Answer Growth of real output resulting from using idle resources, including labour, thereby taki...

How does government failure occur? - Answer Government failure occurs when government intervention in the economy leads to a misallocation of resources What does government failure lead to? - Answer It leads to a loss of both economic and social welfare. What may the policies cause? - Answ...

What is the difference between positive and normative statements? - Answer Positive statements can be tested to see if they are correct, whereas normative statements cannot. Machinery is an example of what factor of production? - Answer Capital Why are value judgements important? - Answer ...

Accelerator Effect - Answer The relation between the change in new investment and the rate of change of national income. Actual Supply - Answer The amount that producers in fact produce. This may differ from planned supply for a variety of reasons such as breakdowns in production, staff absen...

Allocative efficiency - Answer This occurs when the available economic resources are used to produce the combination of goods and services that best matches peoples' tastes and preferences. Division of labour - Answer The specialisation of individuals through the separation of tasks in the p...

Fiscal Policy - Answer the use of government spending and revenue collection to influence the economy what fiscal policy involves - Answer the government changing the levels of taxation and government spending in order to influence Aggregate Demand (AD) and the level of economic activity. ...

GDP - Answer Total value of goods and services produced within a country within a year GDP per capita - Answer Total value of goods and services produced within a country within a year divided by the population The Economic Cycle - Answer Fluctuations in economic activity as measured by ...

positive statement - Answer An objective statement that can be tested against facts to be declared either true or false. normative statement - Answer A subjective opinion, or value judgement, that cannot be declared either true or false. Need - Answer something essential for survival suc...