Aqa A-Level Economics Paper 1 Already Passed

What are positive economics statements? {Ans: Positive economic statements are objective statements that can be tested against facts to be declared either true or false. A positive economic statement does not necessarily have to be true.}What is Economics? {Ans: Economics is the study of how the world's scarce resources are allocated to competing uses to satisfy society's wants. As a social science, Economics attempts to adopt a scientific methodology for observing the behaviour of individuals and groups and then makes predictions based upon these observations. For example, how many more units of a product might an individual buy if the price of that product is reduced by 25%?}What are the three fundamental economic questions that must be considered when deciding how to allocate economic resources? {Ans: 1. What to produce and in what quantities? Goods are usually divided into consumer goods and capital goods. Consumer goods are those that give satisfaction to consumers, such as pizza or a fridge freezer. Capital goods are those used to produce other goods, including machinery and IT equipment. 2. How should goods and services be produced? The basic production decision is between labour-intensive methods (where a high proportion of human capital