EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) what is GDP an indicator of? - Correct Answers ✅the standard of living in a country what is the standard measure of economic growth? - Correct Answers ✅rate of change of GDP what is the difference between total and per capita GDP? - Correct Answers ✅total is the overall GDP for a country and per capita is total GDP/population when does GDP per capita grow? - Correct Answers ✅when national output grows faster than the opoulation what is the difference between real and nominal GDP? - Correct Answers ✅real GDP takes into account inflation but nominal doesn't what is the difference between volume and value? - Correct Answers ✅volume is adjusted for inflation value is monetary value at prices of the day = volume x price what is gross national income? - Correct Answers ✅GDP and net overseas interest and dividends
- starting to be used more due to remittances and aid 1 / 4
EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) what is gross national product? - Correct Answers ✅GDP by any citizens or property of a country anywher e in the world how is growth used to compare over time (2)? - Correct Answers ✅- put figures into context
- make judgements about welfare
what must you use when comparing countries' GDPs and why? - Correct Answers ✅real GDP per capita as population growth varies and inflation would effect it what must you consider when making comparisons in GDP between countries? - Correct Answers ✅must use per capita as total doesn't show living standards and could just increase due to increase in prices what is PPP and how is it measured? - Correct Answers ✅this is an exchange rate which compares how much a typical basket of goods costs in one country why is PPP useful for comparing countries? - Correct Answers ✅takes into account cost of living 2 / 4
EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) what is an example of PPP index? - Correct Answers ✅the big mac index what are the limitations to using GDP to compare standard of
living (6)? - Correct Answers ✅- inaccuracy of data:
inefficient collecting/calculation, black market, home produced services, errors in inflation calculation, no transfer payments
- inequalities: increase in GDP may only benefit wealthy
- quality of g+s: improvement over time not reflected
- comparing currency: converted to US but ppl say u should
use PPP instead
- spending: some doesn't improve living standard but does
GDP e.g. defence
- other factors: like education
how is national happiness measured? - Correct Answers ✅using the measuring national wellbeing report what are the key questions in the national wellbeing report? - Correct Answers ✅life satisfaction, anxiety, happiness and worthwhileness 3 / 4
EDEXCEL: A-Level Economics A - Paper 2
EXAM QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) how are real incomes and subjective happiness related? - Correct Answers ✅they are positively related at low incomes but higher levels of income aren't correlated what is the name for the term suggesting that those on higher incomes aren't happier when their incomes increase? - Correct Answers ✅easterlin paradox what else does income and happiness depend on other than each other? - Correct Answers ✅the people around you - you are happier if you have a higher income than those around you - linked to social status what is the difference between inflation, deflation and
disinflation? - Correct Answers ✅inflation: general increase
of prices in economy
deflation: fall of prices
disinflation: reduction in rate of inflation
what are the most well-known indices for calculating rate of inflation and which is used most? - Correct Answers ✅consumer price index and retail price index, CPI is used how is the CPI calculated ? - Correct Answers ✅living costs and food survey is used
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