Assessment Objectives — Edexcel A-Level Economics A
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Assessment Objectives explained
AO1 rewards accurate recall and correct use of economic terminology, concepts, theories and models, applied to how economic agents behave.
Read the full explanation
Agents include consumers, firms, workers, households and government. Demonstrating knowledge means defining terms precisely, for example distinguishing a movement along a demand curve from a shift, and using models such as supply and demand, the circular flow or the multiplier correctly. Showing understanding means explaining how agents are affected by an issue and how they respond: a rise in interest rates raises borrowing costs, so firms may postpone investment and households may save more. In multiple-choice questions this is tested by selecting the option that uses the concept correctly and matches the behaviour described, rather than the option that merely sounds plausible.
Your focus
- Define and correctly use key economic terms and concepts in context.
- Apply an appropriate economic theory or model to a described situation.
- Explain how specified economic agents are affected by an issue and how they respond.
Assessment Objectives exam tips
Examiner Tips
- 💡Read the stem to identify which agent and which concept are being tested before looking at the options.
- 💡Eliminate options that misuse terminology, even if the economic outcome they describe seems plausible.
- 💡Where an option names a model, check that the mechanism described matches that model's assumptions.
Common Mistakes
- Confusing a movement along a curve with a shift of the curve: correction — a price change causes movement along the curve, while a change in a non-price determinant shifts it.
- Using a term loosely, for example calling any price rise inflation: correction — inflation is a sustained rise in the general price level, not a single price increase.
- Naming a model without applying it to the agents in the scenario: correction — state which agent is affected, through which mechanism, and what response follows.
- Assuming all agents respond identically: correction — consumers, firms and government face different incentives and constraints, so responses differ.