AQA AS Paper 1, June 2023

TopicPrice determination in a competitive marketPrice elasticity of demand

TopicPrice determination in a competitive marketCommodity markets

TopicPrice determination in a competitive marketCommodity markets

TopicMarket structuresOligopolyCommodity markets

TopicPrice determination in a competitive marketDemand & supplyCross elasticityCommodity markets

TopicMarket failure and government interventionMarket failure (general)Government intervention (micro)

TopicEconomic methodology and the economic problemScarcity & choice

TopicProduction, costs and revenueCosts & economies of scale

TopicPrice determination in a competitive marketDemand & supplyTechnological change

TopicMarket failure and government interventionExternalities

TopicThe labour marketLabour demand & supplyTechnological change

TopicMarket failure and government interventionExternalitiesGovernment intervention (micro)

1. AAlternative uses for resources
2. BMarket failures for many goods
3. CThe methodology of positive economics
4. DThe presence of externalities

TopicEconomic methodology and the economic problemOpportunity cost

1. A–0.4
2. B–0.8
3. C–1.0
4. D–2.0

TopicPrice determination in a competitive marketPrice elasticity of demandRevenue & profit

1. AF
2. BG
3. CH
4. DI

TopicMarket failure and government interventionIndirect taxes & subsidiesCross elasticity

1. Afewer external economies of scale.
2. Blower labour productivity.
3. Copportunities for internal economies of scale.
4. Dtotal costs increasing by more than output.

TopicProduction, costs and revenueCosts & economies of scale

1. Aavoided government failure.
2. Bdid not have an opportunity cost.
3. Censured provision of a public good.
4. Dinvolved a normative judgement.

TopicMarket failure and government interventionMerit & demerit goodsPositive & normative

1. Aincomes are more equitably distributed in country W than in country Z.
2. Bincomes are more unequally distributed in country Z than in country W.
3. Cthe mean income may be higher or lower in country Z compared with country W.
4. Dthe ratio of the highest to lowest income is greater in country W than in country Z.

TopicDistribution of income and wealthInequality & poverty

1. AA firm’s objective of maximising profits
2. BAdvertising to establish a brand
3. CHigh cross elasticity of demand
4. DHigh prices and low output

TopicMarket structuresMonopoly & market power

1. A0.4
2. B0.5
3. C2.0
4. D2.5

TopicPrice determination in a competitive marketDemand & supplyPrice elasticity of supply

1. A£210
2. B£290
3. C£305
4. D£385

TopicProduction, costs and revenueCosts & economies of scale

1. Aan alternative to buying another good.
2. Bconsumed by more than one person.
3. Cconsumed together with another good.
4. Ddemanded for two or more distinct uses.

TopicPrice determination in a competitive marketDemand & supply

1. AAn increase in monopoly power at higher levels of output
2. BFirms achieving economies of scale as output increases
3. CHigher prices causing firms to improve productive efficiency
4. DHigher profits providing an incentive to increase output

TopicPrice determination in a competitive marketDemand & supply

1. Amarket becomes more competitive.
2. Bmonopoly power of Fresh Co increases.
3. Cother companies’ market share rises to 37%.
4. Dtwo-firm concentration ratio becomes 63%.

TopicMarket structuresOligopoly

1. AThe social optimum output is greater than the free market output because the private benefit is greater than the social benefit.
2. BThe social optimum output is greater than the free market output because the private benefit is less than the social benefit.
3. CThe social optimum output is less than the free market output because the private benefit is greater than the social benefit.
4. DThe social optimum output is less than the free market output because the private benefit is less than the social benefit.

TopicMarket failure and government interventionExternalities

1. AA reduction in labour costs
2. BHigher job satisfaction
3. CLess use of machinery
4. DMore skills acquired by workers

TopicEconomic methodology and the economic problemSpecialisation & division of labour

1. ADemand is income elastic and supply is price elastic.
2. BDemand is income inelastic and supply is price inelastic.
3. CDemand is price elastic and supply is price elastic.
4. DDemand is price inelastic and supply is price inelastic.

TopicPrice determination in a competitive marketDemand & supplyPrice controls

1. AHealthcare has the characteristics of a private and public good.
2. BProduction of healthcare addresses the basic economic questions of ‘how’ and ‘for whom’.
3. CProvision of healthcare is equitable.
4. DThe supply of healthcare achieves productive efficiency.

TopicMarket failure and government interventionMerit & demerit goodsPublic goods

1. AA maximum price of P3
2. BA minimum price of P2
3. CA subsidy of P1 minus P3 per unit
4. DA subsidy of P2 minus P3 per unit

TopicMarket failure and government interventionMerit & demerit goodsIndirect taxes & subsidies

1. Aare a normal good.
2. Bare an inferior good.
3. Chave an income inelastic demand.
4. Dhave many substitutes.

TopicPrice determination in a competitive marketIncome elasticity

1. Apoint F.
2. Bpoint G.
3. Cpoint H.
4. Dpoint I.

TopicEconomic methodology and the economic problemPPB / PPC

1. AFirms’ productivity and total costs
2. BThe amount that firms choose to produce
3. CThe extent to which firms differentiate their products
4. DThe type of technology used by firms 20

TopicMarket structuresContestability & barriers