Aqa A-Level Economics Paper 1 Already Passed

What are four factors causing an outward shift of the PPC? {Ans: • Technological improvements that lead to increased productivity of capital equipment. • Discovery of new resources, e.g. oil and gas. • Improvements in education and training that lead to a more productive workforce. • Changes that lead to an increase in working population, e.g. increases in immigration or a raised retirement age.}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%?}Which of the following would be classed as a normative economic statement? A. An increase in price usually leads to a fall in the quantity demanded of a good. B. The government should spend more money on improving public transport. C. A reduction in income tax will lead to more people choosing to work. D. An increase in price usually leads to a