Specification Map & Revision Checklist

Applies to: all three papers. Paper 1 draws on specification section 4.1 (micro), Paper 2 on 4.2 (macro), and Paper 3 (synoptic) on both. This lesson is your master revision map — it covers every assessable area and the AO1 knowledge (definitions, formulae, diagrams) on which the higher-order AO2/AO3/AO4 skills are built.

This lesson maps the entire AQA A-Level Economics specification, provides a revision checklist for every topic, lists the essential diagrams and definitions, sets out the key formulae you must know in exam-ready form, identifies cross-topic links that examiners love to test, and gives you a practical exam strategy and timing plan. Use this as your master revision guide in the weeks before the exam.

How to use it: do not read it once and move on. Work down the checklists, RAG-rating each line red/amber/green, and return to your red items. The single most reliable predictor of a grade is not how many hours you revised but whether you closed your specific knowledge gaps — and you cannot close a gap you have not first identified. The tables below let you find those gaps systematically.

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Full AQA A-Level Economics Specification Map

The AQA A-Level Economics specification is divided into two main sections, each assessed by its own paper (plus the synoptic Paper 3 which covers both):

Section 4.1: Individuals, Firms, Markets and Market Failure (Paper 1)

Topic Number	Topic	Key Content
4.1.1	Economic methodology and the economic problem	Scarcity, opportunity cost, PPF, positive vs normative statements, economic methodology
4.1.2	Individual economic decision making	Consumer behaviour, utility theory, behavioural economics (bounded rationality, biases, nudges)
4.1.3	Price determination in a competitive market	Demand, supply, price determination, functions of the price mechanism
4.1.4	Production, costs and revenue	Short-run and long-run costs, economies and diseconomies of scale, revenue curves, profit
4.1.5	Perfect competition, imperfectly competitive markets and monopoly	Perfect competition, monopolistic competition, oligopoly (kinked demand, game theory, collusion), monopoly, contestable markets, price discrimination
4.1.6	The labour market	Demand for labour (MRPL), supply of labour, wage determination, trade unions, monopsony, discrimination, income and wealth distribution
4.1.7	The distribution of income and wealth: poverty and inequality	Lorenz curve, Gini coefficient, causes of inequality, absolute and relative poverty, policies to redistribute
4.1.8	The market mechanism, market failure and government intervention in markets	Externalities, public goods, information failures, merit/demerit goods, government intervention (taxes, subsidies, regulation, tradable permits), government failure

Section 4.2: The National and International Economy (Paper 2)

Topic Number	Topic	Key Content
4.2.1	The measurement of macroeconomic performance	GDP (real vs nominal), inflation (CPI, RPI), unemployment (claimant count, ILO), balance of payments
4.2.2	How the macroeconomy works: the circular flow of income, AD/AS analysis, and related models	Circular flow, AD components (C+I+G+X-M), multiplier, AS (SRAS, LRAS), AD/AS model
4.2.3	Economic performance	Economic growth (actual vs potential), the economic cycle, employment and unemployment (types and causes), inflation and deflation (causes and consequences), balance of payments (components, significance of deficits/surpluses)
4.2.4	Financial markets and monetary policy	Money, banking, central bank role, monetary policy (interest rates, QE), financial regulation
4.2.5	Fiscal policy and supply-side policies	Government budgets, fiscal policy (automatic stabilisers, discretionary), supply-side policies (market-based, interventionist), the Laffer curve
4.2.6	The international economy	Globalisation, trade (absolute and comparative advantage), protectionism, trading blocs, balance of payments, exchange rates (floating, fixed, managed), international competitiveness

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Paper 1 (Micro) vs Paper 2 (Macro) vs Paper 3 (Synoptic)

Understanding which topics appear on which paper is essential:

Paper	Content	Key Distinguishing Feature
Paper 1	Section 4.1 only (micro)	Questions only test microeconomic topics: markets, firms, market failure, labour markets
Paper 2	Section 4.2 only (macro)	Questions only test macroeconomic topics: AD/AS, growth, inflation, unemployment, trade, policy
Paper 3	Sections 4.1 AND 4.2	Questions can test ANY topic and require you to link micro and macro analysis

Key Point: Paper 3 is the paper that catches students who have revised micro and macro separately. You MUST practise making connections across the specification.

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Key Definitions That Must Be Precise

AQA examiners award marks for precise definitions. Vague or incomplete definitions lose marks. Here are the definitions you must know word-perfectly:

Microeconomic Definitions

Term	Definition
Opportunity cost	The value of the next best alternative forgone when a choice is made
Price elasticity of demand (PED)	The responsiveness of quantity demanded to a change in price (% change in Qd / % change in P)
Income elasticity of demand (YED)	The responsiveness of quantity demanded to a change in income (% change in Qd / % change in Y)
Cross elasticity of demand (XED)	The responsiveness of quantity demanded of one good to a change in the price of another good
Price elasticity of supply (PES)	The responsiveness of quantity supplied to a change in price
Externality	A cost or benefit that affects a third party not directly involved in the economic transaction
Public good	A good that is non-excludable and non-rivalrous in consumption
Merit good	A good that is underconsumed in a free market because consumers underestimate its private benefits or because it generates positive externalities
Demerit good	A good that is overconsumed in a free market because consumers underestimate its private costs or because it generates negative externalities
Market failure	When the free market mechanism leads to a misallocation of resources, resulting in a net welfare loss
Government failure	When government intervention leads to a net welfare loss compared with the free market outcome
Allocative efficiency	Achieved when resources are allocated in a way that maximises consumer welfare; occurs where P = MC
Productive efficiency	Achieved when a firm produces at the lowest point on its average cost curve (minimum AC)
Monopoly	A market structure with a single seller (or, in AQA's definition, a firm with 25%+ market share)
Oligopoly	A market structure dominated by a few large firms, characterised by interdependence and barriers to entry
Monopsony	A market with a single buyer (e.g., a single employer in a labour market)
Economies of scale	Reductions in long-run average cost as a firm increases its scale of production
Diseconomies of scale	Increases in long-run average cost as a firm becomes too large

Macroeconomic Definitions

Term	Definition
Aggregate demand (AD)	The total planned expenditure on goods and services produced in an economy at a given price level (AD = C + I + G + (X − M))
Aggregate supply (AS)	The total output of goods and services that firms in an economy are willing and able to supply at a given price level
Economic growth	An increase in the real GDP of an economy over time (or an increase in the productive capacity of the economy)
Inflation	A sustained increase in the general price level of goods and services in an economy over time
Deflation	A sustained decrease in the general price level
Demand-pull inflation	Inflation caused by an increase in aggregate demand that exceeds the economy's productive capacity
Cost-push inflation	Inflation caused by an increase in the costs of production, leading to a decrease in aggregate supply
Unemployment	When people of working age are actively seeking work but are unable to find employment
Current account	The section of the balance of payments that records trade in goods and services, primary income, and secondary income
Fiscal policy	The use of government spending and taxation to influence the level of aggregate demand and the pattern of economic activity
Monetary policy	The use of interest rates, money supply, and exchange rates by the central bank to influence the level of aggregate demand
Supply-side policies	Government policies designed to increase the productive capacity of the economy by improving the quality and quantity of factors of production
Multiplier	The process by which an initial change in a component of aggregate demand leads to a larger final change in national income
Comparative advantage	When a country can produce a good at a lower opportunity cost than another country
Exchange rate	The price of one currency expressed in terms of another currency

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Key Formulae You Must Know (Exam-Ready)

At least 20% of marks across the qualification assess quantitative skills, and the formulae below recur in every series. Learn them so that you can write the formula, substitute, and answer with units without hesitation — the formula and substitution alone earn method marks even if the arithmetic slips.

The Four Elasticities

$PED = \frac{\%\,\Delta \text{ quantity demanded}}{\%\,\Delta \text{ price}}$PED=%Δ price%Δ quantity demanded​

A value with magnitude $> 1$>1 is elastic; $< 1$<1 is inelastic; $= 1$=1 is unit elastic. PED is normally negative (the inverse demand relationship); the sign is dropped only when discussing magnitude.

$PES = \frac{\%\,\Delta \text{ quantity supplied}}{\%\,\Delta \text{ price}}$PES=%Δ price%Δ quantity supplied​

PES is normally positive. It is higher (more elastic) when there is spare capacity, stockpiles, or a longer time period.

$YED = \frac{\%\,\Delta \text{ quantity demanded}}{\%\,\Delta \text{ income}}$YED=%Δ income%Δ quantity demanded​

The sign classifies the good: $YED > 0$YED>0 is a normal good; $YED < 0$YED<0 is an inferior good; $YED > 1$YED>1 is a luxury (income-elastic), and $0 < YED < 1$0<YED<1 is a necessity.

$XED = \frac{\%\,\Delta\, Q_d \text{ of good A}}{\%\,\Delta\, P \text{ of good B}}$XED=%ΔP of good B%ΔQd​ of good A​

Again the sign is decisive: $XED > 0$XED>0 means substitutes; $XED < 0$XED<0 means complements; $XED \approx 0$XED≈0 means unrelated goods.

Exam Tip: For every elasticity, the discriminating mark is usually the interpretation — state both the sign (what relationship) and the magnitude (how responsive). A bare number is an incomplete answer.

Percentage Change and Index Numbers

$\%\,\Delta = \frac{\text{New value} - \text{Old value}}{\text{Old value}} \times 100$%Δ=Old valueNew value−Old value​×100

$\text{Index number} = \frac{\text{Value in year}}{\text{Value in base year}} \times 100$Index number=Value in base yearValue in year​×100

The base year always has an index of 100. To find the percentage change between two index values, apply the percentage-change formula to the indices themselves — e.g. a move from 100 to 108 is a $\dfrac{108-100}{100}\times 100 = 8\%$100108−100​×100=8% rise.

The Multiplier

$k = \frac{1}{1 - MPC} = \frac{1}{MPW} = \frac{1}{MPS + MPT + MPM}$k=1−MPC1​=MPW1​=MPS+MPT+MPM1​

where MPC is the marginal propensity to consume and MPW is the marginal propensity to withdraw (the sum of the marginal propensities to save, tax, and import). The final change in national income is the initial injection multiplied by $k$k:

$\Delta Y = k \times \Delta \text{ (injection)}$ΔY=k×Δ (injection)

For example, with $MPC = 0.8$MPC=0.8, $k = \dfrac{1}{1-0.8} = 5$k=1−0.81​=5, so a £10bn rise in investment raises national income by £50bn, ceteris paribus.

Other Useful Macro Formulae

$\text{Terms of trade} = \frac{\text{Index of export prices}}{\text{Index of import prices}} \times 100$Terms of trade=Index of import pricesIndex of export prices​×100

$\text{Real value} = \frac{\text{Nominal value}}{\text{Price index}} \times 100 \qquad \text{Gini coefficient} = \frac{A}{A + B}$Real value=Price indexNominal value​×100Gini coefficient=A+BA​

In the Gini formula, $A$A is the area between the line of perfect equality and the Lorenz curve and $B$B is the area beneath the Lorenz curve; a coefficient of 0 is perfect equality and 1 is perfect inequality. A rise in the terms of trade means each unit of exports buys more imports.

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Essential Diagrams List with Exam Frequency

Based on analysis of past AQA papers, the following diagrams appear most frequently:

High Frequency (Appear on Nearly Every Paper)

Diagram	Papers	Priority
Supply and demand (with shifts)	1, 3	Essential
AD/AS (Classical and/or Keynesian)	2, 3	Essential
Monopoly diagram (AR, MR, MC, AC)	1, 3	Essential
Externalities (negative/positive)	1, 3	Essential
Cost curves (MC, AC, AVC)	1, 3	Essential

Medium Frequency (Appear Regularly)

Diagram	Papers	Priority
Labour market (supply and demand for labour)	1, 3	High
Monopsony in the labour market	1, 3	High
Lorenz curve / Gini coefficient	1, 3	High
Perfect competition (short-run and long-run)	1, 3	High
Tax and subsidy diagrams	1, 3	High
Phillips curve (short-run and long-run)	2, 3	High
PPF (Production Possibility Frontier)	1, 2, 3	High

Lower Frequency (But Still Examinable)

Diagram	Papers	Priority
Kinked demand curve (oligopoly)	1, 3	Medium
Contestable markets	1, 3	Medium
J-curve	2, 3	Medium
Laffer curve	2, 3	Medium
Game theory payoff matrix	1, 3	Medium
Price discrimination (third degree)	1, 3	Medium
Exchange rate determination (floating)	2, 3	Medium

Exam Tip: Prioritise the "High Frequency" diagrams in your revision. You should be able to draw these perfectly, from memory, in under 30 seconds each. Practise until they are automatic.

What Each Key Diagram Proves

A diagram is only useful if you know the argument it makes. Memorise the one-line purpose of each must-know diagram so you reach for the right one under pressure: