England · AQAQ&A
EconomicsQ&A by dot point
A short Q&A bank for every England Economics syllabus dot point. Each question and answer is drawn directly from our worked dot-point page, so you can scan key concepts before opening the long-form answer.
3.1 How markets work
- The benefits of competition, monopoly and market power, the causes of market failure including externalities, merit and demerit goods and public goods, and how government intervenes to correct it.2Q&A pairs
- The objectives of firms, fixed, variable and total costs, average cost, total and average revenue, and how profit is calculated and why it matters for producers.2Q&A pairs
- The law of demand, why the demand curve slopes downwards, the difference between a movement along and a shift of demand, and the factors that shift demand.2Q&A pairs
- Economies of scale and why they lower average cost, the difference between internal and external economies, diseconomies of scale, and the costs and benefits of business growth.2Q&A pairs
- The four factors of production (land, labour, capital and enterprise), the rewards to each factor, and how the quantity and quality of factors affect what an economy can produce.2Q&A pairs
- Market equilibrium, how the interaction of demand and supply sets the equilibrium price and quantity, how surpluses and shortages are cleared, and how shifts in demand or supply change the equilibrium.3Q&A pairs
- Price elasticity of demand and supply, how each is calculated, the meaning of elastic and inelastic, the factors that affect elasticity, and the link between elasticity and revenue.2Q&A pairs
- Production and productivity, the division of labour and specialisation, the advantages and disadvantages of specialising, and the role of exchange in a specialised economy.2Q&A pairs
- How markets allocate resources through the price mechanism, the rationing, signalling and incentive functions of price, and the primary, secondary and tertiary sectors of the economy.2Q&A pairs
- The law of supply, why the supply curve slopes upwards, the difference between a movement along and a shift of supply, and the factors that shift supply.2Q&A pairs
- The economic problem of scarcity, the difference between needs and wants, opportunity cost, and why choices have to be made by consumers, producers and government.2Q&A pairs
- The demand for and supply of labour, how the equilibrium wage is set, why wages differ between jobs, and the meaning of derived demand in the labour market.2Q&A pairs
- What a market is, the different types of market, the functions of money, the characteristics of money, and how money and markets allow specialisation and exchange to take place.2Q&A pairs
3.2 How the economy works
- The distribution of income and the causes of inequality, how the government redistributes income, and the difference between progressive, proportional and regressive taxes.2Q&A pairs
- What economic growth is, the causes of growth, the stages of the economic cycle, and the benefits and costs of economic growth.3Q&A pairs
- The four main macroeconomic objectives, what gross domestic product (GDP) measures, how living standards are judged, and the possible conflicts between objectives.2Q&A pairs
- What unemployment is and how it is measured, the main types and causes of unemployment, the costs of unemployment, and the meaning of full employment.2Q&A pairs
- Fiscal policy through government spending and taxation, monetary policy through interest rates and the money supply, the role of the Bank of England, and how these policies are used to meet macroeconomic objectives.2Q&A pairs
- What globalisation is, its causes, the role of multinational companies, and the benefits and drawbacks of globalisation for countries, firms and workers.3Q&A pairs
- The main sources of government income, the main types of government spending, the difference between a budget deficit and surplus, and the meaning of the national debt.2Q&A pairs
- What inflation is and how it is measured by the CPI, the causes of inflation, the effects of inflation, and the meaning of deflation.2Q&A pairs
- The reasons for international trade, the meaning of imports and exports, the balance of payments, the role of exchange rates, and the benefits and drawbacks of trade.3Q&A pairs
- What supply-side policies are, the main examples such as education and training, tax and benefit reform and infrastructure, how they aim to raise productive capacity, and their strengths and limits.2Q&A pairs
- The role of money in the wider economy, the functions of commercial banks and the central bank, the importance of financial markets, and how the financial sector supports households and firms.2Q&A pairs