AQA · Microeconomics · Economic methodology and the economic problem

AQA Economics past paper questions: Economic methodology and the economic problem

Every AQA question on Economic methodology and the economic problem from 2016 to 2025: 2 essays, 8 data response questions and 46 multiple choice questions. It covers PPB / PPC, Scarcity & choice, Positive & normative, Opportunity cost and Specialisation & division of labour. Each question links to its paper, mark scheme and examiner report.

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SubtopicsPPB / PPC 19Scarcity & choice 12Positive & normative 10Opportunity cost 9Specialisation & division of labour 7Economic systems 6Inequality & poverty 3Productivity & efficiency 2Commodity markets 1Demand & supply 1Technological change 1Externalities 1Trade & comparative advantage 1

Essay questions on economic methodology and the economic problem

A-level Paper 1, June 2022, Q9Explain15 marks
Explain how the price mechanism allocates resources in a market economy.

Examiner insight

What to cover
The price mechanism allocates resources through three functions. Signalling: price changes show where demand has shifted. Incentive: higher prices reward firms that supply more. Rationing: higher prices reduce quantity demanded to match scarce supply.
Watch out
Explain all three functions with one worked example.
Question paper p.6Mark scheme p.16Examiner report p.6Marked student answers p.35Open in the tool
A-level Paper 1, November 2020, Q11Explain15 marks
Explain how a production possibility diagram can be used to illustrate some features of the fundamental economic problem.

Examiner insight

What to cover
A production possibility diagram shows scarcity (the frontier limits output), choice (points on the frontier), opportunity cost (the slope, and the output given up when moving along it), unemployment (points inside) and growth (the frontier shifts out).
Watch out
Explain opportunity cost with numbers from your own diagram. Several features are needed for the top level.
Question paper p.6Mark scheme p.18Examiner report p.4Open in the toolDraw it: PPF diagram

Data response questions on economic methodology and the economic problem

AS Paper 1, June 2024, Q24Draw4 marks

Context 1: Tourism in the UK

A local authority has limited resources to allocate to two services, ‘cleaning beaches’ and ‘other local government services’. Draw a production possibility diagram showing the potential provision of these two services. Assuming these resources remain fully employed, show on this diagram the effect of allocating more resources to cleaning beaches.
Question paper p.16Mark scheme p.9Insert p.1Open in the toolDraw it: PPF diagram
AS Paper 1, June 2024, Q30Draw4 marks

Context 2: Eye care in the UK

Extract F (lines 9–10) states: ‘As well as affecting a person’s quality of life and adding to health care costs, eyesight problems can lead to lower productivity.’ Draw a production possibility diagram showing the output of two products, ‘goods’ and ‘services’. Show on this diagram the effect of a fall in productivity due to more people having eyesight problems.
Question paper p.26Mark scheme p.15Insert p.1Open in the toolDraw it: PPF diagram

Multiple choice questions

  1. A-level Paper 3, June 2025, Q2

    Figure 1 shows a production possibility diagram for an economy where goods and services are produced in the private and public sectors. The economy is currently producing at point Y. Figure 1 Following a change in government, it is decided…

  2. A-level Paper 3, June 2025, Q3

    Which one of the following best describes how a social scientist would develop an economic theory?

  3. A-level Paper 3, June 2025, Q24

    Country X and Country Y have identical amounts of the factors of production that can be used to produce either canoes or rowing boats. Figure 7 shows the production possibility frontiers (PPFs) for the two countries. Figure 7 Which one of…

  4. AS Paper 1, June 2025, Q1

    Which one of the following would not be classified by an economist as a factor of production?

  5. AS Paper 1, June 2025, Q2

    The central purpose of economic activity is the production of goods and services to satisfy needs and wants. Which of the following is one of the three key decisions that has to be taken to achieve this?

  6. AS Paper 1, June 2025, Q13

    In Figure 3, the curve XX shows the initial production possibility boundary (PPB) for a toy manufacturer producing trains and buses. Figure 3 Which one of the following combinations is most likely to explain why the firm’s PPB has shifted…

  7. AS Paper 1, June 2025, Q16

    Developed economies, such as the UK, are characterised by high levels of specialisation which involve workers concentrating on a specific task or occupation. This specialisation is possible because in such economies

  8. A-level Paper 3, June 2024, Q1

    Which one of the following is a consequence of the basic economic problem of limited resources and unlimited wants?

  9. A-level Paper 3, June 2024, Q3

    Figure 1 shows the production possibility boundary for petrol-powered cars and electric- powered cars in a country's car industry. Figure 1 If production has moved from Point A to Point B, which one of the following must be true?

  10. AS Paper 1, June 2024, Q1

    Which one of the following is a function of prices in a market economy?

  11. AS Paper 1, June 2024, Q2

    Which one of the following is a normative statement? The price of petrol

  12. AS Paper 1, June 2024, Q12

    Kim has £100 to spend and is considering three options. She would rather spend the money on clothes than shoes but believes she would gain most benefit from spending £100 on an evening out. Assuming that she spends the money to gain the…

  13. A-level Paper 3, June 2023, Q2

    The environment is a scarce resource. A consequence of this is that

  14. A-level Paper 3, June 2023, Q22

    Table 3 below shows the amount of coffee or tea that two countries can produce with a given amount of resources. Table 3 Coffee Tea (tonnes) (tonnes) Country X 80 000 100 000 Country Y 50 000 75 000 Which one of the following statements is…

  15. AS Paper 1, June 2023, Q1

    Which one of the following gives rise to opportunity cost?

  16. AS Paper 1, June 2023, Q14

    Which one of the following is the most likely outcome of greater division of labour in a tractor factory?

  17. AS Paper 1, June 2023, Q19

    Figure 5 shows the production possibility curve for an economy producing boots and bicycles. The initial combination of boots and bicycles produced is shown by point E. Figure 5 A change in consumer preferences causes the boot industry to…

  18. A-level Paper 3, June 2022, Q1

    A positive statement

  19. A-level Paper 3, June 2022, Q3

    Figure 1 shows the production possibility diagram for an economy producing capital goods and consumer goods. Figure 1 The opportunity cost of producing an additional unit of capital goods is

  20. AS Paper 1, June 2022, Q1

    Choice is central to the economic problem because

  21. AS Paper 1, June 2022, Q8

    An economist puts forward a hypothesis, collects evidence to test it, and then accepts, modifies, or rejects the hypothesis. This is an example of

  22. AS Paper 1, June 2022, Q14

    The price mechanism allocates resources by

  23. A-level Paper 3, November 2021, Q6

    Figure 2 shows the production possibility curve for an economy producing capital and consumer goods. Figure 2 The opportunity cost of increasing the output of capital goods from G1 to G2 is shown by

  24. A-level Paper 3, November 2020, Q1

    Economics is a social science because

  25. A-level Paper 3, November 2020, Q14

    Increased output results from specialisation and the division of labour because they enable

  26. AS Paper 1, June 2020, Q1

    A resource must be scarce if

  27. AS Paper 1, June 2020, Q7

    Figure 2 shows the production possibility frontier for an economy producing only two goods: chickens and cabbages. Figure 2 Which one of the following statements is true?

  28. AS Paper 1, June 2020, Q19

    A firm makes more use of division of labour when organising its workforce. The most likely result will be

  29. A-level Paper 3, June 2019, Q16

    The table below shows the value of the Gini coefficient for a country between 2012 and 2016. Over the five year period, the government has used progressive taxation to change the distribution of income. Year Gini coefficient 2012 0.60 2013…

  30. AS Paper 1, June 2019, Q1

    Which one of the following best describes the basic economic problem?

  31. AS Paper 1, June 2019, Q19

    ‘Large pay bonuses received by top executives have caused income inequality to increase.’ This statement

  32. AS Paper 1, June 2019, Q20

    An economy produces racing cars and robots. The economy’s initial production possibility frontier (PPF1) is shown in the diagram below. The economy’s production possibility frontier shifts to PPF2 and as a result of this change the

  33. A-level Paper 3, June 2018, Q3

    The diagram below shows the production possibility frontier for an economy that produces consumer goods and capital goods. The economy is initially operating at point X within its frontier. If the economy now moves from point X to point Y…

  34. AS Paper 1, June 2018, Q1

    The central purpose of the production of goods and services is to

  35. AS Paper 1, June 2018, Q6

    Which one of the following is most likely to reduce the benefits of specialisation?

  36. AS Paper 1, June 2018, Q8

    Which one of the following is an example of the economic resource capital?

  37. A-level Paper 3, June 2017, Q1

    Economic decision making and policies are influenced by value judgements because

  38. AS Paper 1, June 2017, Q3

    The following diagram shows the production possibility frontier for an economy that produces bread and honey. If the economy is initially at point W, then the opportunity cost of moving to point X is

  39. AS Paper 1, June 2017, Q6

    An economist puts forward a hypothesis which is assessed against evidence. As a result of this, the hypothesis is accepted, rejected or modified. This is an example of

  40. AS Paper 1, June 2016, Q1

    In a free market economy, the economic problem of what goods should be produced is usually solved by

  41. AS Paper 1, June 2016, Q2

    The diagram below shows a production possibility boundary for an economy that produces goods and services. From the diagram it can be concluded that

  42. A-level Paper 3, Specimen, Q29

    A farmer can produce two types of grain on his farm, wheat and barley. The production possibility boundary below shows the different quantities of the two grains that can be produced on the farm in a single year. It can be deduced from the…

  43. AS Paper 1, Specimen, Q6

    The table below shows the production possibilities for a firm producing butter and cheese. Output of butter Output of cheese (million kilos) (million kilos) 0 100 1 2 3 4 It can be concluded from the table that, as production of butter…

  44. AS Paper 1, Specimen, Q10

    Which one of the following statements about money and specialisation is correct?

  45. AS Paper 1, Specimen, Q14

    Which one of these is a function of the market mechanism?

  46. AS Paper 1, Specimen, Q16

    Which one of the following is a positive economic statement?

Question text is quoted from the question papers, © AQA, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.