AQA A Level Economics Questions to test Understanding
What is the difference between positive and normative statements? - Positive statements can be tested
to see if they are correct, whereas normative statements cannot.
Machinery is an example of what factor of production? - Capital
Why are value judgements important? - So you can choose between options in a way most people think
is fair
Why does the fundamental economic problem exist? - People have unlimited wants but resources are
scarce to make these goods
People choose to _________ something - maximise
When a choice must be made, what do people choose? - People choose what they think at the time is
the best alternative
What is the opportunity cost? - The cost of giving up the next best alternative
Can someone act rationally and be wrong? - Yes, but they are only rational if they don't make the same
mistake again
If a point on a PPD moves closer to the PPF, what is this? - Short-run economic growth
What are all the points on the PPF? - productively efficient
Are all the points on the PPF allocatively efficient? - Not necessarily, as it may not be what people want.
Allocative efficiency requires value judgements.
