How do you calculate index numbers?

by finding the ratio of current value to a base value of 100

What is a nominal value?

The upfront cost without accounting for inflation

What is gross national product?

measures the final value of output or expenditure by uk owned FOP worldwide

What is specialisation?

Concentrating on one particular task or product

What is supply-side policy?

designed to make markets work more efficiently

What is the price relative index?

ratio of a price of a commodity at a time to its price a different time

What is the circular flow of income?

it is the flow of goods, FOP and the payments between households and firms

What is the difference between wealth and income?

wealth is a stock concept and income is a flow concept, income is earning from working and wealth is your total accumulated earning

Which option is not a limitation of GDP to compare living standards?

takes account of what people can buy using their incomes

What is real national GDP?

output of the economy taking into account inflation

What is opportunity cost?

loss of other alternatives when one alternative is chosen

What does gross national income equal?

Overseas investment - foreigners earnings [that are sent home]

state of being in short supply or shortage

What is a capital good?

a good that is used in producing other goods rather than being bought

What is a transition economy?

changing from a centrally planned economy to a market economy

What is a real value?

The value of something accounting fully for inflation at the time

What are economic goods?

made from scarce resources with opportunity cost

How is real GDP calculated?

Sum of{base year prices x current year quantities}

What is the productivity gap?

difference between the productivity levels in the uk and another country

What is fiscal policy?

changes to government taxation, government spending and borrowing

What is the production possibility frontier?

how much an economy can produce giving existing resources

What option is not an assumption made in the simple model of the circular flow of income?

that income is recieved in full

What is a consumer good?

a good sold to the public that is consumed rather then used in production

What is the economic problem?

satisfying infinite wants with limited resources

made from non-scarce resources with no opportunity cost

What is gross domestic product?

sum of all goods and services or output produced in an economy over a time

How do you calculate chain base index?

current variable/previous years variable x 100

What is a free market economy?

buying/selling goods and service that are not under control from government

prolonged downturn in the economy

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A Level AQA Economics

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AQA Macroeconomics and Microeconomics Year 1 questions for A Level with concise and accurate answers.

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Questions 50

Answers

1
How do you calculate index numbers?
by finding the ratio of base value to current value
by finding the ratio of current value to a base value of 100
by finding the ratio of two economic variables together
by finding the ratio of two numbers that are divided by one another
2
Which option is not a factor of production?
enterprise
labour
location
capital
3
What type of economy is the United Kingdom?
a free market economy
a mixed economy
a transition economy
a command economy
4
What is a nominal value?
The upfront cost accounting for inflation
The upfront cost accounting for changes in the countrys GDP
The upfront cost without accounting for inflation
The upfront cost accounting for the GNI per capita
5
What is a tangible good?
a good which costs alot of money
a good which costs little to no money
perceptable by touch
not perceptable by touch
6
Which option is finite?
water
Sunshine
Wind
Space
7
What is investment known as?
Expenditure on consumer goods
Expenditure on capital goods
Expenditure on training
Expenditure on land
8
What is gross national product?
measures the final value of output or expenditure by uk owned FOP worldwide
the sum of only goods produced in an economy over a time
total income added up
sum of all goods and services or output produced in an economy over a time
9
What is specialisation?
Concentrating on no tasks or products
None of the above
Concentrating on numerous tasks or products
Concentrating on one particular task or product
10
What is supply-side policy?
designed to make markets work more efficiently
changes to interest rates and the supply of money
changes to government taxation, government spending and borrowing
the policy of increasing productive output of a country
11
What is the price relative index?
ratio of a countrys GDP to GNP over a given time period
the overall total expenditure within a country
the amount of wealth is tied up in capital goods
ratio of a price of a commodity at a time to its price a different time
12
What is the circular flow of income?
it is the flow of products between cooperation
it is the flow of goods, FOP and the payments between households and firms
the difference between the flow of good and that of the income that arrives
the flow of goods from one country to another with what happens to income
13
What is the difference between wealth and income?
wealth is a stock concept and income is a flow concept
wealth is a flow concept and income is a stock concept
income is earning from working and wealth is your total accumulated earning
income is accumulated income and wealth is earnings from working
14
Which option is not a limitation of GDP to compare living standards?
transactions without a monetary value
economic growth can cause inequality
takes account of what people can buy using their incomes
negative externalities
15
What is real national GDP?
output of the economy without taking into account inflation
output of the economy
income of the entire economy
output of the economy taking into account inflation
16
If the sum of injections is less then the sum of withdrawals what is happening to national income?
It is falling
It stays the same
It is rising
It stays the same in line with inflation
17
What is opportunity cost?
loss of other alternatives when one alternative is chosen
act of choosing between two or more possibilities
opportunity for profit
opportunity for loss on your investment
18
What does gross national income equal?
Overseas investment - foreigners earnings [that are sent home]
foreigners earnings [that are sent home] - overseas investment
foreigners earnings [that are sent home] + overseas investment
Overseas investment + foreigners earnings [that are sent home]
19
What is aggregate demand equal to?
G + I + G + {X-M}
C + I + G + {X-M}
D + I + G + {X-M}
C + I + C + {X-M}
20
Market mechanism - forces of demand and supply determine the price and quantity of goods and services
False
True
21
What is scarcity?
having alot of demand
having little demand
state of having an excess of supply
state of being in short supply or shortage
22
Land is a natural resource used in production
True
False
23
What is a capital good?
a good which is used for ones benefit
a good sold to the public that is consumed rather then used in production
a good that is used in producing other goods rather than being bought
a good which is used to ones disadvantage
24
What is a intangible good?
a good which costs alot of money
perceptable by touch
not perceptable by touch
a good which costs little to no money
25
What is a transition economy?
changing from a centrally planned economy to a market economy
changing between economys
changing from a market economy to a centrally planned economy
changing your beliefs
26
Nominal GDP is calculated by - the sum of the current year prices/current year quantities
False
True
27
What is a real value?
The value of something without fully accounting for inflation at the time
The value which accounts for both GNI and GDP per capita in a country
The value which is recorded in a shop
The value of something accounting fully for inflation at the time
28
What are economic goods?
made from scarce resources with opportunity cost
made from scarce resources with no opportunity cost
made from a non-scarce resource with opportunity cost
made from non-scarce resources with no opportunity cost
29
Per capita income is total income divided by the number of people in a country
False
True
30
How is real GDP calculated?
Sum of{current year prices/current year quantities}
Sum of{base year prices/current year quantities}
Sum of{base year prices x current year quantities}
Sum of{current year prices x current year quantities}
31
What does equitable mean?
Fair
Unfair
The amount of costs that a firm incurs over a given period
The amount of money that a firm earns over a given period
32
What is the productivity gap?
difference between the productivity levels in the uk and another country
difference between price levels of two countrys
difference between the productivity between two people
difference between the GDP of two countrys
33
What is fiscal policy?
designed to make markets work more efficiently
changes to government taxation, government spending and borrowing
the policy of increasing productive output of a country
changes to interest rates and the supply of money
34
What is the production possibility frontier?
how much an economy will develop over the next decade
how much an economy can produce giving existing resources
how much an economy grows in a year
how much a economy can produce with no resources left
35
What is a positive statement?
Based upon opinion
a statement which discourages economic growth
A statement which encourages economic growth
Based upon fact
36
What is consumption known as?
Expenditure on training
Expenditure on land
Expenditure on consumer goods
Expenditure on capital goods
37
Which option does not effect investment?
Interest rates
business confidence
household indeptedness
price of capital
38
What option is not an assumption made in the simple model of the circular flow of income?
firms spend all income on the FOP
households spend all income on goods and services
there is no government intervention
that income is recieved in full
39
What is a consumer good?
a good that is used in producing other goods rather than being bought
a good which is used to ones disadvantage
a good which is used for ones benefit
a good sold to the public that is consumed rather then used in production
40
What is the economic problem?
satisfying resources with wants
satisfying limited wants with infinite resources
satisfying wants with resources
satisfying infinite wants with limited resources
41
Income = input = expenditure
True
False
42
What is a free good?
made from non-scarce resources with no opportunity cost
made from a non-scarce resource with opportunity cost
made from scarce resources with no opportunity cost
made from scarce resources with opportunity cost
43
What is gross domestic product?
measures the final value of output or expenditure by uk owned FOP worldwide
all of the above
the sum of only goods produced in an economy over a time
sum of all goods and services or output produced in an economy over a time
44
Capital intensive production is using large quantities of capital to make labour more productive
False
True
45
How do you calculate chain base index?
previous years variable/current variable x 100
current variable + previous years variable x 100
previous years variable - current variable x 100
current variable/previous years variable x 100
46
What is a free market economy?
the trading of goods with some involvement of others
selling goods under control from the government
buying/selling goods and service that are not under control from government
buying goods which come from abroad
47
What is a recession?
productivty is staying the same
prolonged downturn in the economy
productivity is both rising and falling
prolonged upturn in the economy
48
A increase in Consumption, Investment and Government spending will shift the AD curve which way?
Left
Right
Up
Nowhere
49
Which option is not a leakage from the economy?
imports
exports
savings
taxation
50
Monetary policy is the policy of increasing productive output of a country
False
True

A Level AQA Economics Flashcards | StudBud