AQA A-Level Economics Paper 1 June 2022 Explain the difference between complete and partial market failure. (15 marks) Complete market failure occurs when the free market fails to provide a good entirely, resulting in a missing market. This happens in the case of public goods, which are goods that

AQA A-Level Economics Paper 1 June 2021 Explain how rules of thumb and irrationality can affect consumers’ demand for goods and services. (June 2019) Firstly, consumers' demand can be affected by bounded rationality despite the assumption that all agents are rational. This happens due to a lack of

AQA A-Level Economics Paper 1 June 2024 Explain why imperfect and asymmetric information may lead to market failure in the market for food. (June 2024) Market failure is when there is a misallocation of resources. Imperfect information occurs when economic agents are unable to easily access all the information

AQA A-Level Economics Paper 1 June 2021 Explain how a firm may benefit from both internal and external economies of scale. (15 marks) Economies of scale are when long run average costs fall as output increases. Internal economies of scale occur when a specific firm's long run

AQA A-Level Economics Paper 2 June 2022 Explain the main problems for an economy of having a large positive output gap. (15 marks) A positive output gap is when the actual rate of economic growth is greater than the trend rate of economic growth, which relates to the capacity

AQA A-Level Economics Paper 1 June 2017 Explain why, in a free market, sugary drinks may be overconsumed. (15 marks) A market is a place where buyers and sellers meet to exchange goods and services. A free market has no government intervention so price and quantity is determined by

AQA A-Level Economics Paper 1 June 2019 Explain the factors a profit-maximising firm will take into account when deciding whether to shut down or to carry on operating, both in the short run and in the long run. (15 marks) 1. The short-run shutdown condition is AR

AQA A-Level Economics Paper 1 June 2017 Explain how price and output are determined for a firm in a monopolistically competitive market, in both the short run and the long run. (15 marks) 1. Monopolistic competition is a market structure with low barriers to entry and slight product differentiation.

AQA A-Level Economics Paper 1 June 2023 Explain why, in long-run equilibrium, monopolistically competitive markets are neither productively nor allocatively efficient. (15 marks) 1. Monopolistic competition is a market structure with low barriers to entry and slight product differentiation.  2. The diagram below shows a firm’s cost

AQA A-Level Economics Paper 2 June 2019 Explain why the value of a currency may fall in a floating exchange rate system. (15 marks) Exchange rates are the price of a currency in terms of another. A floating exchange rate is when the exchange rate is determined by market

AQA A-Level Economics Paper 2 June 2020 Explain how an appreciation of its currency is likely to affect a country’s rate of economic growth. Exchange rates are the value of one currency in terms of another. A currency appreciation means that the price of the currency has increased.

AQA A-Level Economics Paper 2 June 2018 Explain how fiscal policy can be used to try to improve the supply side of an economy. (15 marks) 1. Fiscal policy is the manipulation of government spending and taxation. 2. Usually, this is done to influence the level of aggregate demand

AQA A-Level Economics Paper 1 June 2021 Explain how perfect competition should lead to outcomes which are both productively and allocatively efficient. (15 marks) Perfect competition is a market structure that is characterised by many buyers and sellers, firms selling identical products, perfect information, and no barriers to entry

AQA A-Level Economics Paper 1 June 2022 Explain how the price mechanism allocates resources in a market economy. (15 marks) In the free market, equilibrium is the price and quantity at which demand meets supply. The price mechanism has three functions (ration, incentive and signal) and this solves the

AQA A-Level Economics Paper 2 June 2024 Explain how the multiplier and accelerator affect the overall level of economic activity. (15 marks) 1. The overall level of economic activity could be measured as the level of output, income or expenditure. 2. Real GDP measures the total value of goods