AQA AS Paper 1, June 2024

TopicEconomic methodology and the economic problemScarcity & choice

TopicMarket failure and government interventionIndirect taxes & subsidies

TopicPrice determination in a competitive marketDemand & supply

TopicEconomic methodology and the economic problemPPB / PPC

TopicPrice determination in a competitive marketDemand & supply

TopicMarket failure and government interventionGovernment intervention (micro)Externalities

TopicProduction, costs and revenueCosts & economies of scale

TopicThe labour marketLabour demand & supply

TopicMarket failure and government interventionMerit & demerit goods

TopicEconomic methodology and the economic problemPPB / PPCProductivity & efficiency

TopicPrice determination in a competitive marketDemand & supplyTechnological change

TopicMarket failure and government interventionMerit & demerit goodsGovernment intervention (micro)

1. AAllocating resources to the production of public goods
2. BEnsuring that the distribution of goods and services is fair
3. CIncentivising firms to produce the goods consumers want
4. DProviding a measurement of positive and negative externalities

TopicEconomic methodology and the economic problemEconomic systems

1. Afell in real terms last year.
2. Bis affected by supply.
3. Cis now too high.
4. Dwill rise next year.

TopicEconomic methodology and the economic problemPositive & normative

1. AA fall in the number of people studying Economics
2. BA fall in the price of Economics textbooks
3. CAn increase in consumer incomes
4. DAn increase in the price of paper

TopicPrice determination in a competitive marketDemand & supply

1. Aprices fall causing firms to make losses.
2. Bthere are no positive externalities in consumption.
3. Cthere is a missing market for the product.
4. Dthere is immobility of factors of production.

TopicMarket failure and government interventionMarket failure (general)

1. A0.25
2. B0.4
3. C2.5
4. D4

TopicPrice determination in a competitive marketPrice elasticity of supply

1. Acharge the same price as other firms.
2. Bearn large profits in the long run.
3. Cproduce the same output as its competitors.
4. Dspend large amounts of money on advertising.

TopicMarket structuresPerfect competition

1. Amaximise the difference between its total revenue and total cost.
2. Bmaximise the total revenue it receives from selling its output.
3. Cminimise the average total cost of each unit it produces.
4. Dminimise the total cost of producing its output.

TopicProduction, costs and revenueRevenue & profit

1. Aa fall in the price of barley and a leftward shift of the supply curve.
2. Ba fall in the price of barley and a movement along the supply curve to the left.
3. Ca rise in the price of barley and a movement along the supply curve to the right.
4. Da rise in the price of barley and a rightward shift of the supply curve.

TopicPrice determination in a competitive marketDemand & supply

1. AThe extent to which barriers to entry exist
2. BThe number of workers employed in the industry
3. CThe shape of a typical firm’s average cost curve
4. DWhether firms sell luxury goods or necessities

TopicMarket structuresContestability & barriers

1. AProfits of farmers from selling milk will increase by £1 million
2. BThe revenue received by farmers will increase by 30p per pint
3. CThere will be excess demand of 40 million pints
4. DTotal revenue from the sales of milk will increase by £100 million

TopicMarket failure and government interventionPrice controls

1. Agovernment action to reduce inequality may lead to government failure.
2. Bit affects an individual’s ability to consume goods and services.
3. Cit provides the incentive for people to work hard.
4. Dthe government will not be able to provide as many merit goods.

TopicDistribution of income and wealthInequality & povertyMarket failure (general)

1. AThe clothes
2. BThe clothes and the shoes
3. CThe evening out
4. DThe shoes

TopicEconomic methodology and the economic problemOpportunity cost

1. AGrants to new retailers
2. BMarketing campaign
3. CNew bus station
4. DPedestrianisation

TopicMarket failure and government interventionExternalities

1. Aa decrease in the barriers to entry into the market.
2. Ba rightward shift of the demand curve for electric scooters.
3. Cadditional economies of scale experienced by the dominant firm.
4. Dan increase in the price paid by consumers for electric scooters.

TopicMarket structuresMonopoly & market power

1. Afall by 10%.
2. Bfall by 40%.
3. Crise by 10%.
4. Drise by 40%.

TopicPrice determination in a competitive marketCross elasticity

1. Aexternal economies of scale.
2. Binternal economies of scale.
3. Cthe provision of a public good.
4. Dthe provision of perfect information.

TopicProduction, costs and revenueCosts & economies of scale

1. AOutput per hour of labour was higher in 2017 than in 2021
2. BProduction of cars was higher in 2019 than in 2018
3. CThe firm was operating at full capacity in 2019
4. DThere were fewer workers employed in 2020 than in 2018

TopicProduction, costs and revenueProductivity & efficiency

1. Aa good is used for a variety of different purposes.
2. Bthe demand for a good depends on the sales of what it produces.
3. Cthe willingness to buy the good is backed by the ability to pay.
4. Dtwo goods have a positive cross elasticity of demand.

TopicPrice determination in a competitive marketDemand & supply

1. Aprice elastic and total revenue will fall.
2. Bprice elastic and total revenue will rise.
3. Cprice inelastic and total revenue will fall.
4. Dprice inelastic and total revenue will rise.

TopicPrice determination in a competitive marketPrice elasticity of demandRevenue & profit

1. AFewer people will use trains to go to work.
2. BMore vehicles will use motorways at busy times.
3. CMotorways would become a public good.
4. DThe costs of many businesses will increase. 20

TopicMarket failure and government interventionExternalitiesTechnological change