Economics Aqa A level Paper 1
positive statement - An objective statement that can be tested against facts to be declared either true or
false.
normative statement - A subjective opinion, or value judgement, that cannot be declared either true or
false.
Need - something essential for survival such as food or medical care
Want - something that people desire but that is not necessary for human survival.
Economic welfare - The economic well-being of an individual, a group within society, or an economy.
Production - a process, or set of processes, that converts inputs into output of goods.
Capital good - A good which is used in the production of other goods or services. Also known as a
producer good.
Consumer good - A good which is consumed by individuals or households to satisfy their needs or wants.
factors of production - Inputs the productive process such as land, labour, capital and enterprise.
Fundamental economic problem - how best to make decisions about the allocation of scarce resources
among competing uses so as to improve and maximise human happiness and welfare.
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.
