Paper 1: Markets and how they work · 9EB0/01

Edexcel B A-level Paper 1, June 2019

All 10 written questions from Edexcel B A-level Paper 1 (June 2019), Markets and how they work. Case studies: The growth of sportswear sales, Office of Gas and Electricity Markets (Ofgem) and The cost of going to university. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Section A

Case study

The growth of sportswear sales

Extracts: A: The growth of sportswear sales · B: Market share (%) of sportswear brands in China, 2016 · C: New Balance

In the extracts: Balance, China, Nike, Balance Degrees Sportwear, Erke Converse Peak, Media Data Systems, Nike Adidas Anta, Chinese Olympic, Europe and Asia, Li Ning Xtep

Q1(a)Calculate4 marks

Using Extract A, calculate, to 2 decimal places, Nike’s profit for the year margin for 2016. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicRevenue, costs, profits and cashIntroducing the market

Question paper p.5 Mark scheme p.4 Examiner report p.4 Open in the tool

Q1(b)Explain4 marks

Explain one reason why a business such as New Balance differentiates its products.

Mark splitKnowledge 1Application 2Analysis 1

TopicRevenue, costs, profits and cashIntroducing the market

Question paper p.6 Mark scheme p.4 Examiner report p.5 Open in the tool

Q1(c)Calculate4 marks

Using Extract A, calculate, to 2 decimal places, Anta’s total costs in 2016. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicRevenue, costs, profits and cash

Question paper p.7 Mark scheme p.5 Examiner report p.6 Open in the tool

Q1(d)Analyse6 marks

Using a supply and demand diagram to show excess demand, analyse how this may affect the future price of these shoes.

Mark splitKnowledge 2Application 2Analysis 2

TopicIntroducing the market

Question paper p.8 Mark scheme p.6 Examiner report p.7 Open in the tool Draw it: supply and demand diagram

Q1(e)Discuss8 marks

Discuss the extent to which sales maximisation is the main objective for a business such as New Balance.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicRevenue, costs, profits and cashIntroducing the market

Question paper p.9 Mark scheme p.7 Examiner report p.9 Open in the tool

Q1(f)Assess10 marks

Assess the possible impact of an increase in interest rates on New Balance’s UK operations.

Mark splitKnowledge 2Application 2Analysis 3Evaluation 3

TopicRevenue, costs, profits and cashIntroducing the market

Question paper p.11 Mark scheme p.9 Examiner report p.11 Open in the tool

Q1(g)Assess12 marks

Assess the importance of economies of scale to the success of firms such as Nike.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicRevenue, costs, profits and cashIntroducing the market

Question paper p.13 Mark scheme p.11 Examiner report p.14 Open in the tool Practise the cost curves diagram

Q1(h)Assess12 marks

Assess the extent to which this may cause stakeholder conflict.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicEnterprise, business and the economy

Question paper p.15 Mark scheme p.13 Examiner report p.16 Open in the tool

Section B

Case study

Office of Gas and Electricity Markets (Ofgem)

Extracts: D: Office of Gas and Electricity Markets (Ofgem) · E: 12% E.ON · F: Average household electricity and gas bills (annual cost)

In the extracts: Ofgem, CMA, Energy, SSE, Energy Cooperative Warehouse, Others First Utility, Scottish Power SSE, Utilita, Competition and Markets Authority, Office of Gas and Electricity

Q2Evaluate20 marks

Evaluate the extent to which regulation of the energy market may benefit consumers.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicMarket power and market failureMarket failure across the economy

Question paper p.20 Mark scheme p.15 Examiner report p.18 Open in the tool

Section C

Case study

The cost of going to university

Extracts: G: The cost of going to university · H: World University Rankings 2016-2017: top 10 · I: Government launches 30 hours a week of free early education and childcare

In the extracts: States, United States, England, Kingdom, Early, Massachusetts Institute of Technology, California Institute of Technology, University of Cambridge United, Switzerland Technology Zurich, University of Oxford United

Q3Evaluate20 marks

The UK government intervenes in the education sector. Education is considered a merit good. Evaluate the likely impact on the UK economy of government intervention in the education sector.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicMarket failure and government intervention

Question paper p.26 Mark scheme p.17 Examiner report p.21 Open in the tool Practise the positive externality diagram

Question text is quoted from the question papers, © Pearson Edexcel, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Section A

The growth of sportswear sales

Section B

Office of Gas and Electricity Markets (Ofgem)

Section C

The cost of going to university

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