AQA A Level Economics 7136 | 200 Essay Words

Use these 200 AQA A Level Economics words to explain mechanisms, apply diagrams and evaluate policy in a 15- or 25-mark response. Each entry gives a meaning and an example of how to use it.

AQA Economics 7136 has three compulsory papers, each lasting two hours and worth 80 marks. Papers 1 and 2 each include a 40-mark Section B essay option. In AQA’s published papers, each option contains a 15-mark explanation and a 25-mark assessment or evaluation question.

The 200-word list

1–20 Microeconomic analysis · 21–40 Macroeconomic analysis · 41–60 Taking a position · 61–80 Using evidence and reasoning · 81–100 Connecting ideas · 101–120 Explaining cause and effect · 121–140 Comparing options and weighing costs · 141–160 Weighing competing priorities · 161–180 Public decisions and evidence · 181–200 Describing scale and change

Exam requirements · Worked response · Worked analysis · Fencing Method · Practice and FAQs · Revision · Practice workshop

1–20 Microeconomic analysis

scarcity — limited resources in relation to wants. scarcity requires a choice.
opportunity cost — the value of the best alternative forgone. evaluate the opportunity cost of a subsidy.
elasticity — responsiveness of one variable to a change in another. price elasticity affects the fall in quantity demanded.
inelastic — relatively unresponsive to a change in a specified variable. inelastic demand for a necessary input.
equilibrium — a position where opposing forces balance in the model. a new market equilibrium.
surplus — an excess or a gain beyond a reference point, depending on context. a fall in consumer surplus.
shortage — an excess of quantity demanded over quantity supplied at a given price. a binding ceiling can create a shortage.
marginal — relating to the next unit or a small additional change. compare marginal social cost with marginal social benefit.
externality — a cost or benefit affecting a third party outside the transaction. congestion can create a negative externality.
incidence — the distribution of an economic burden or benefit. the incidence of a tax depends on relative elasticities.
subsidy — financial assistance that can change incentives or costs. a subsidy reduces the effective cost of an activity.
rationing — allocating a limited quantity among competing users. price rationing allocates available supply.
monopoly — a market with a single seller, or dominant market power in relevant usage. evaluate the consequences of monopoly power.
monopsony — a market with a single buyer, or dominant buyer power in relevant usage. a firm with monopsony power can influence wages.
oligopoly — a market dominated by a few firms. strategic interaction in an oligopoly.
contestability — the extent to which entry and exit can discipline firms. contestability depends partly on sunk costs.
barrier — an obstacle that makes entry or action difficult. a barrier to entry protects incumbents.
welfare — economic wellbeing, often assessed through benefits and costs. evaluate the net welfare effect.
allocative efficiency — allocation where marginal social benefit equals marginal social cost in the standard framework. the tax may move output toward allocative efficiency.
productive efficiency — production at the lowest attainable average cost for the relevant output or at minimum average cost in the standard firm diagram. distinguish productive efficiency from higher output alone.

21–40 Macroeconomic analysis

inflation — a sustained rise in the general price level. distinguish inflation from an individual price rise.
disinflation — a fall in the inflation rate while prices may still be rising. disinflation reduces the rate of price increase.
deflation — a sustained fall in the general price level. deflation can increase the real burden of debt.
unemployment — the condition of being without work while available for and seeking it under the standard measure. cyclical unemployment can rise during a downturn.
productivity — output per unit of input. higher labour productivity can reduce unit costs.
aggregate demand — planned total expenditure on domestically produced output at a given price level. higher investment can raise aggregate demand.
aggregate supply — total output firms are willing to produce at a given price level. higher input costs can reduce short-run aggregate supply.
output gap — the difference between actual and potential output. a negative output gap indicates spare capacity.
multiplier — the ratio of the eventual change in national income to the initial change in an injection. a larger marginal propensity to import can reduce the multiplier.
leakage — a withdrawal from the circular flow, such as saving, taxation or imports. higher imports increase a leakage.
injection — spending entering the circular flow through investment, government spending or exports. a rise in exports is an injection.
fiscal policy — use of government spending and taxation to influence the economy. an expansionary fiscal policy can raise demand.
monetary policy — central-bank action influencing monetary and financial conditions. monetary policy operates through several channels.
transmission — the process through which a policy change affects the economy. the transmission from rates to investment can take time.
exchange rate — the price of one currency in terms of another. the exchange rate can affect import prices.
depreciation — a fall in the value of a currency under a floating exchange-rate system. depreciation can raise the domestic price of imports.
current account — the balance-of-payments account recording trade and primary and secondary income flows. consider the effect on the current account.
crowding out — a reduction in private spending associated with increased public spending or borrowing. crowding out may limit the rise in investment.
capacity — the level of output an economy or producer can sustain with available resources. spare capacity can affect the inflation response.
hysteresis — a lasting effect of a temporary shock on the economy. long unemployment spells can contribute to hysteresis.

41–60 Taking a position

claim — a statement you want the reader to accept. make a claim.
stance — your position on a question. take a clear stance.
thesis — the central position or interpretation your response develops. support the thesis.
premise — an idea the argument starts from. question the premise.
assumption — something treated as true without being established. test the assumption.
assert — state a position firmly. assert that access matters.
argue — give reasons in support of a position. argue for a trial.
maintain — continue to hold or defend a view. maintain that the policy is fair.
contend — put forward a position that can be challenged. contend that the proposal is workable.
justify — give sufficient reasons for a decision or judgement. justify the expense.
advocate — publicly support an action or change. advocate for reform.
defend — answer criticism of a view or choice. defend a decision.
qualify — limit a statement so it applies only where warranted. qualify the conclusion.
concede — acknowledge a valid point made by the other side. concede that costs may rise.
rebut — answer an opposing claim with reasoning or evidence. rebut the objection.
counterargument — a reasoned objection to a position. address a counterargument.
reservation — a concern that makes agreement incomplete. express a reservation.
distinguish — show what makes two things different. distinguish cost from value.
criteria — standards used to judge something. agree on the criteria.
verdict — a final judgement reached after consideration. reach a verdict.

61–80 Using evidence and reasoning

evidence — information that helps establish a claim. draw on evidence.
example — a specific case that makes a general point clearer. give a concrete example.
illustrate — make an idea clearer through a case or detail. illustrate the difficulty.
demonstrate — show how or why something is true. demonstrate a connection.
substantiate — support a claim with convincing information. substantiate the allegation.
corroborate — provide independent support for an existing account. corroborate the witness’s account.
infer — draw a conclusion from available clues. infer a motive from the wording.
imply — suggest a meaning without saying it directly. imply that change is possible.
interpret — explain what something means in context. interpret a figure in context.
analyse — examine how parts work together. analyse the writer’s choices.
evaluate — judge the strength, quality or value of something. evaluate the proposal.
plausible — reasonable enough to believe given what is known. a plausible explanation.
credible — worthy of belief or trust. a credible source.
relevant — directly connected to the issue being considered. relevant to the question.
sufficient — enough for the purpose or conclusion at hand. sufficient for a limited trial.
representative — typical enough to reflect a larger group. a representative sample.
anecdote — a brief account of a particular incident. open with an anecdote.
limitation — something that restricts what a method or claim can establish. acknowledge a limitation.
contradict — state or show something incompatible with another claim. contradict the earlier finding.
synthesise — combine ideas from separate sources into a new account. synthesise competing accounts.

81–100 Connecting ideas

whereas — introduces a clause that contrasts with another. whereas the first option costs less.
although — introduces a fact that qualifies the main statement. although demand may rise.
however — signals a contrast or change in direction. however, costs remain uncertain.
nevertheless — signals that a point still holds despite a difficulty. nevertheless, the trial could go ahead.
conversely — introduces a contrasting relationship in the reverse direction. conversely, lower demand can free capacity.
similarly — points out a meaningful likeness. similarly, smaller groups need space.
likewise — shows that a similar point applies elsewhere. likewise, evening users need lighting.
consequently — introduces a result of what came before. consequently, the queue grew.
therefore — introduces a conclusion or result that follows. therefore, a trial is justified.
furthermore — adds a supporting point. furthermore, the existing room is free.
specifically — narrows the discussion to a precise detail. specifically, the plan would add two sessions.
instead — signals a replacement or different choice. instead, use the current building.
alternatively — introduces another option. alternatively, change the timetable.
otherwise — indicates what happens under different conditions. book early, otherwise places may fill.
provided — introduces a condition when used with a following clause. provided that staffing is adequate.
despite — introduces something that fails to prevent the main outcome. despite the delay.
unlike — marks a difference between two things. unlike the previous scheme.
respectively — matches items with values in the same stated order. costs were $5 and $8, respectively.
overall — signals a judgement about the whole picture. overall, the benefits are modest.
ultimately — identifies what matters after other factors are considered. ultimately, the decision depends on demand.

101–120 Explaining cause and effect

cause — produce or bring about an outcome. cause avoidable delays.
contribute — play a part in bringing about an outcome. contribute to overcrowding.
trigger — set a process or reaction in motion. trigger a review.
accelerate — make a process happen faster. accelerate the transition.
intensify — make something stronger or more severe. intensify competition.
exacerbate — make an existing problem worse. exacerbate existing inequalities.
mitigate — reduce the severity or harmful effect of something. mitigate the harm.
prevent — stop something from happening. prevent further damage.
deter — discourage someone from taking an action. deter people from taking risks.
enable — make an action possible. enable students to attend.
facilitate — make an action or process easier. facilitate access to training.
reinforce — strengthen an effect, belief or behaviour. reinforce an existing pattern.
undermine — weaken something, often gradually. undermine public trust.
sustain — keep something going over time. sustain the improvement.
displace — push something or someone out of an existing place or role. displace smaller operators.
redistribute — change how something is shared. redistribute public funds.
consequence — an outcome that follows an action or event. an unintended consequence.
mechanism — the process through which an effect occurs. identify the mechanism.
correlation — a pattern in which two things vary together. observe a correlation.
constraint — a condition that limits what can be done. work within a budget constraint.

121–140 Comparing options and weighing costs

benefit — a useful or favourable effect. a long-term benefit.
drawback — a feature that makes an option less attractive. a potential drawback.
trade-off — a compromise in which gaining one thing costs another. a trade-off between cost and convenience.
priority — something that deserves attention before competing needs. give priority to public health.
alternative — another way of achieving a goal. offer an alternative to driving.
feasible — possible to carry out with the available resources. a feasible timetable.
viable — capable of working successfully over time. a viable business model.
practical — suited to what can actually be done. a practical solution.
effective — able to produce the intended result. an effective response to congestion.
efficient — able to achieve a result with relatively little waste. efficient use of limited funds.
affordable — within the means of the people expected to pay. affordable childcare.
accessible — easy or possible for the intended users to reach or use. accessible public transport.
equitable — fair in light of differing needs and barriers. equitable access to training.
proportionate — appropriate in scale to the problem. a proportionate penalty.
substantial — large enough to matter. a substantial reduction in waste.
measure — an action taken to address a problem. introduce a temporary measure.
outweigh — be more important than something on the other side. the benefits outweigh the costs.
offset — counterbalance part or all of an effect. offset part of the expense.
allocate — assign money, time or resources to a purpose. allocate funds to local schools.
compromise — an arrangement that meets competing needs only in part. reach a workable compromise.

141–160 Weighing competing priorities

funding — money made available for a purpose. secure funding for a trial.
demand — the amount of interest or need for something. meet growing demand.
supply — the amount of something available for use. increase the supply of rental homes.
discretion — freedom to exercise judgement within a role or set of rules. give teachers discretion.
autonomy — the ability or right to make one’s own decisions. protect personal autonomy.
accountability — responsibility to explain and answer for decisions. increase public accountability.
consensus — broad agreement among a group. build consensus over priorities.
dissent — expressed disagreement with a prevailing view. allow space for dissent.
compliance — acting according to a rule or requirement. monitor compliance with the rule.
enforcement — steps taken to make a rule operate in practice. the cost of enforcement.
disparity — a noticeable difference between groups or outcomes. a disparity in participation.
burden — a cost, duty or difficulty borne by someone. reduce the burden on families.
incentive — a feature that encourages someone to act. create an incentive to volunteer.
deterrent — something that discourages an action. a deterrent to unsafe driving.
feasibility — whether a proposal can be carried out in practice. assess the feasibility of a pilot.
viability — whether a proposal can work or continue successfully. question the long-term viability.
allocation — distribution of limited resources among possible uses. the allocation of public funds.
reciprocity — mutual exchange of benefits, help or obligations. a relationship based on reciprocity.
uptake — the extent to which people start using an offer or service. increase uptake among commuters.
safeguard — a measure designed to protect against a risk. build in a safeguard for applicants.

161–180 Public decisions and evidence

governance — how institutions make and carry out decisions. local governance shapes enforcement.
jurisdiction — the area or matters over which an authority has legal power. within the regulator’s jurisdiction.
access — the ability or opportunity to use something. improve access to online resources.
regressive — placing a larger proportional burden on people with less income in a tax or charging context. a potentially regressive flat charge.
progressive — placing a larger proportional tax burden on higher incomes. a progressive tax schedule.
procurement — the process of buying goods or services, often for an institution. public procurement rules.
requirement — something a person or system needs or must satisfy. meet a minimum requirement.
outcome — the result of an action or process. improve learning outcomes.
levy — an officially imposed charge. a levy on disposable packaging.
exemption — release from a rule or charge. an exemption for emergency vehicles.
substitution — the use of one option in place of another. substitution of rail travel for driving.
displacement — movement of a problem, activity or group elsewhere. displacement of traffic into nearby streets.
rationale — the reasoning behind an action. explain the rationale for a fee.
baseline — a starting measurement for later comparison. collect baseline data before the trial.
causality — the relationship through which one factor produces an effect. a claim about causality needs evidence.
implementation — the process of putting a plan into practice. the implementation depends on local staffing.
legitimacy — acceptance that an institution or action has rightful standing. public scrutiny can strengthen legitimacy.
distributional — relating to how effects are shared across groups. the distributional impact of a transport charge.
option — one choice among several possibilities. offer a lower-cost option.
spillover — an effect that reaches beyond the original activity or area. a spillover into neighbouring districts.

181–200 Describing scale and change

widespread — present across many places or groups. widespread smartphone use.
prevalent — common in a particular group or setting. prevalent among younger adults.
persistent — continuing over a period despite efforts or change. a persistent shortage.
gradual — happening in small steps over time. a gradual decline.
incremental — proceeding through successive small additions or changes. incremental improvements.
temporary — lasting for a limited period. a temporary measure.
permanent — intended or expected to continue indefinitely. a permanent change.
systemic — rooted in the workings of a whole system. a systemic failure.
structural — arising from the organisation of institutions or systems. structural barriers to employment.
localised — limited to a particular area or group. a localised shortage.
uneven — distributed or developing differently across a group. uneven growth across regions.
disproportionate — too large or too small relative to a comparison. a disproportionate burden.
unintended — occurring without being planned. an unintended effect.
preventable — capable of being stopped before it happens. preventable injuries.
measurable — able to be assessed in observable terms. a measurable improvement.
threshold — a point at which a rule, effect or condition begins to apply. reach a minimum threshold.
trajectory — the direction in which change is moving over time. alter the long-term trajectory.
fluctuate — rise and fall irregularly. prices fluctuate over time.
stabilise — become or make something more steady. stabilise demand.
reverse — change an earlier direction or outcome. reverse the decline.

What the three AQA papers assess

Paper 1 covers markets and market failure. Paper 2 covers the national and international economy. Each has a 40-mark data-response section and a 40-mark Section B essay option. Choose one of three essay options in Section B and answer both parts of the chosen option. Paper 3 covers the full specification through 30 marks of multiple choice and a 50-mark case-study section.

For an explanation question, develop the economic mechanism and apply it to the task. For an evaluation question, identify relevant conditions, compare effects and reach a judgement. Useful evaluation names which assumption changes the outcome, such as elasticity, spare capacity, time horizon or how a policy is implemented.

AQA 7136 specification at a glance · AQA 7136 subject content · AQA Paper 1 example showing the 15/25 split

Word list · Worked response

A worked microeconomics paragraph

Original practice task. Evaluate whether an indirect tax is likely to reduce the social cost of traffic congestion. Imagine a charge applied to entering a busy area during peak hours.

A peak-period charge raises the private cost of driving into the area. Some drivers may switch to another time, route or mode of travel. If traffic in the charged area falls, the delays imposed on other road users may also fall. The result depends on how responsive travel is to the charge. Where public transport is limited and journeys are time-sensitive, demand may be relatively inelastic. In that case, the charge could raise revenue while producing a smaller change in traffic.

The paragraph names the action, behavioural response and outcome. It then tests an assumption that matters. A fuller answer could evaluate whether delays are displaced to surrounding streets, whether the charge is targeted at the time when external costs are greatest, and how a better transport alternative might affect the result.

Word list · Exam requirements · Worked analysis

A worked macroeconomics paragraph

Original practice task. Assess whether higher government investment will increase real output without creating much inflation. In the short run, increased government spending can raise aggregate demand. If firms have spare capacity, they may respond by producing more, with a smaller effect on the price level than if capacity is tight. The strength of the increase can also depend on leakages and on the policy response.

In the longer run, the effect of investment depends on what it produces. Infrastructure that reduces business costs could help expand productive capacity. A delayed project would have a different timing. Distinguish the initial demand effect from the possible supply-side effect. If you draw a diagram, label the relevant curve and explain why it shifts. Make the axes and the change in equilibrium part of the written reasoning.

Word list · Worked response · Fencing Method

How to fence an economics word

1. Base. Demand may be inelastic. 2. Detail. Peak-time demand for driving may be price inelastic. 3. Tone. Drivers with few substitutes may respond only slightly to a charge. 4. Logic. If many trips cannot change time or mode, the charge may reduce traffic less than expected. 5. Transfer. Demand for a necessary medicine may be less price responsive when there is no close substitute.

Practise distinguishing a movement along a demand curve from a shift of the curve. A change in the good’s own price changes quantity demanded along the curve in the standard model. A change in a determinant such as income or preferences can shift demand. Explain which one your example uses.

The eduKate Fencing Method for Vocabulary

Word list · Worked analysis · Practice and FAQs

Practise the 15-mark and 25-mark moves

For an explanation exercise, show how a subsidy changes an incentive and what happens to the relevant equilibrium in a simple model. Then write an evaluation version. Compare the benefit with the fiscal cost and ask who receives the benefit. Consider how relative elasticities and the policy’s target affect the result.

What is the Section B option worth? Forty marks. Is every paper arranged the same way? Papers 1 and 2 have data and essay sections. Paper 3 has multiple choice and a case study. Do I need a diagram in every paragraph? Use a relevant model when it helps explain the mechanism or when asked. Explain what the diagram shows.

Word list · Fencing Method · Revision

A timed revision routine

Read the introduction and identify the measure you are judging. Then underline the mechanism in each paragraph. Mark an assumption that the mechanism depends on. If the conclusion says only that there are advantages and disadvantages, compare their importance under a named condition.

Finish by checking terminology. A fall in inflation is disinflation when the inflation rate falls while prices still rise. It is different from deflation. An increase in the amount bought when price falls is a change in quantity demanded. Such distinctions improve the accuracy of the argument without requiring a longer essay.

Word list · Practice and FAQs

Practice workshop

Use an economic definition inside the reasoning

Define the term that matters to the question, then apply it. If you discuss a negative externality, name the third party and the cost they bear. A congestion example might identify time lost by other road users. This makes the definition part of the argument and gives the policy a clear outcome to address.

Explain tax incidence without confusing it with collection

A tax can be remitted by one party while its economic burden is shared. Explain how buyers and sellers adjust and why relative elasticities matter. Use a diagram if it makes the price paid, price received and quantity clearer. Then connect the burden back to the group the question asks about.

Check diagram labels against the claim

Write one sentence saying which curve shifts, why it shifts and what changes in equilibrium. Then check the axes and the initial and new positions. A diagram should help the reader follow the mechanism you are explaining. If the written response describes a different change, fix the mismatch before adding a second model.

Compare short-run and long-run effects

A transport charge might have a small immediate effect when travellers have few alternatives. Over time, firms or households may adjust locations, schedules or travel modes. Explain which assumptions make this plausible. Then decide whether the short-run effect or long-run adjustment matters more to the question.

Use spare capacity in a macro judgement

If aggregate demand rises when resources are underused, output may respond more strongly than prices. Near capacity the effect can differ. Name the condition and explain why it changes the balance. Avoid promising a specific result unless the evidence or model supports it. Use the condition to shape the conclusion.

Distinguish an increase in demand from a rise in output

The response to an injection depends on the economy’s circumstances. Draw the link from the spending decision to demand, then to output or prices. Explain a leakage that can limit the effect. If you switch from a short-run demand argument to an argument about productive capacity, make the timing and mechanism explicit.

Give one alternative policy a fair comparison

If you recommend a charge to manage congestion, compare it with improving public transport. A charge changes the cost of a trip. Better transport can make switching easier. Decide whether the policies work separately or reinforce one another. Explain which condition, such as capacity or speed of implementation, matters most.

Make the final judgement specific

State the objective and the circumstance in which the policy is most likely to achieve it. Then identify a condition that would change your recommendation. A judgement about congestion might depend on the availability of substitutes and the design of the charging area. Avoid introducing new theory in the final sentence.

Use case-study evidence in an essay-style judgement

Suppose a case study says travel demand peaks during a short interval and the alternative service is already full. Use those details to qualify an argument for road pricing. The timing could support a targeted charge, while limited capacity could make switching harder. Explain both links and decide what that combination means for the likely result.

Then write a comparison with a setting where public transport has spare capacity. Show how the same policy could have a different effect. This gives the conclusion a condition rooted in the evidence.

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Top 200 Vocabulary Word List for AQA A Level Economics (7136) | Essay Writing