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

Edexcel B A-level Paper 1, November 2020

All 10 written questions from Edexcel B A-level Paper 1 (November 2020), Markets and how they work. Case studies: How British Airways (BA) is turning itself into a low-cost…, Manchester and Amazon is not a traditional monopoly, but it does…. 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

Summer exams were cancelled, so this paper was sat in the autumn series. The paper itself is headed with the original summer date.

Section A

Case study

How British Airways (BA) is turning itself into a low-cost airline

Extracts: A: How British Airways (BA) is turning itself into a low-cost airline · B: Government sets out its vision for UK aviation · C: For the airline industry, jet fuel represents one of the largest expenses.

In the extracts: APD, Manchester Airport Terminal, European Economic Area, EasyJet and Ryanair, European Commission, British Airways, Norwegian, America, Eleven

Q1(a)Calculate4 marks

Calculate, to two decimal places, the percentage decrease in the price of jet fuel between July 2008 and January 2018. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicIntroducing the market

Question paper p.5 Mark scheme p.4 Examiner report p.3 Open in the tool

Q1(b)Calculate4 marks

Calculate the marginal revenue gained from the decrease in price for refitting an aircraft.

Mark splitKnowledge 1Application 3

TopicRevenue, costs, profits and cash

Question paper p.6 Mark scheme p.4 Examiner report p.3 Open in the tool

Q1(c)Illustrate4 marks

Using a supply and demand diagram, illustrate the likely impact on BA of further bad publicity for the business.

Mark splitKnowledge 2Application 1Analysis 1

TopicIntroducing the market

Question paper p.7 Mark scheme p.5 Examiner report p.4 Open in the tool Draw it: supply and demand diagram

Q1(d)Analyse6 marks

Analyse two ways secondary market research may be used by airlines, such as BA, to help increase sales.

Mark splitKnowledge 2Application 2Analysis 2

TopicEnterprise, business and the economy

Question paper p.8 Mark scheme p.6 Examiner report p.5 Open in the tool

Q1(e)Discuss8 marks

Discuss the importance to BA of survival as a business objective.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicEnterprise, business and the economy

Question paper p.9 Mark scheme p.7 Examiner report p.6 Open in the tool

Q1(f)Assess10 marks

Assess the government’s decision to reduce air passenger duty (APD) as part of its vision for UK aviation.

Mark splitKnowledge 2Application 2Analysis 3Evaluation 3

TopicMarket failure and government interventionCompetition and market powerMarket failure across the economy

Question paper p.10 Mark scheme p.9 Examiner report p.7 Open in the tool Practise the indirect tax diagram Practise the negative externality diagram

Q1(g)Assess12 marks

Assess the possible impact of rising fuel prices on an airline business.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicMarket failure and government interventionCompetition and market powerMarket failure across the economy

Question paper p.12 Mark scheme p.11 Examiner report p.9 Open in the tool

Q1(h)Assess12 marks

Assess the extent to which this may negatively impact BA.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicMarket failure and government interventionCompetition and market powerMarket failure across the economy

Question paper p.14 Mark scheme p.13 Examiner report p.11 Open in the tool

Section B

Case study

Manchester

Extracts: D: A new high-speed rail network connecting the north and south. · E: Estimated time-savings from HS2

In the extracts: Manchester and Leeds, Birmingham, HS2 Phase, Midlands, Britain, London, TIMES, Leeds Manchester Sheffield, Birmingham London Key, London and Birmingham

Q2Evaluate20 marks

Evaluate the extent to which these externalities are likely to benefit the UK economy.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicMarket failure and government intervention

Question paper p.18 Mark scheme p.15 Examiner report p.13 Open in the tool

Section C

Case study

Amazon is not a traditional monopoly, but it does monopolise the attention

Extracts: F: Amazon is not a traditional monopoly, but it does monopolise the attention · G: E-commerce share of total global retail sales from 2015 to 2021. (* denotes forecasted

In the extracts: Amazon, E-commerce, Walmart, Google and Facebook, Amazon CEO Jeff, Whole Foods, PillPack, Zappos, Twitch, Bezos

Q3Evaluate20 marks

Evaluate the potential impact of Amazon’s market power on its stakeholders.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicEnterprise, business and the economyCompetition and market power

Question paper p.23 Mark scheme p.17 Examiner report p.19 Open in the tool Practise the monopoly 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

How British Airways (BA) is turning itself into a low-cost airline

Section B

Manchester

Section C

Amazon is not a traditional monopoly, but it does monopolise the attention

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