Paper 3: The economic environment and business · 9EB0/03

Edexcel B A-level Paper 3, June 2025

All 8 written questions from Edexcel B A-level Paper 3 (June 2025), The economic environment and business. Case studies: Diseconomies of Scale and UK national living wage increase: implications for employers. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Insert Examiner report

Section A

Case study

Diseconomies of Scale

Extracts: A: Diseconomies of Scale · B: Tesco boss hits back over claims grocer has made ‘excessive’ profits while · C: Revealed: 2023’s most ethical companies in the world · D: Globalisation’s winners and losers

In the extracts: World Most Ethical, Companies, Tesco, Board of Directors and Chief, Executive Officer of PepsiCo, United Nations’ Sustainable, Unite General Secretary, Tesco Chief Executive, Specialisation Loss, Company and PepsiCo

Q1(a)Discuss8 marks

Discuss whether the growth of a firm will always lead to diseconomies of scale.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicBusiness growth and competitive advantage

Question paper p.2 Mark scheme p.4 Insert Examiner report p.4 Open in the tool Practise the cost curves diagram

Q1(b)Assess10 marks

Assess the extent to which the objectives of a firm and a consumer might conflict.

Mark splitKnowledge 2Application 2Analysis 3Evaluation 3

TopicScarcity, choice and potential conflicts

Question paper p.3 Mark scheme p.6 Insert Examiner report p.8 Open in the tool

Q1(c)Assess12 marks

Assess whether an ethical stance by a business will lead to stakeholder conflict.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicEnterprise, business and the economy

Question paper p.5 Mark scheme p.8 Insert Examiner report p.15 Open in the tool

Q1(d)Evaluate20 marks

Evaluate the extent to which globalisation has benefitted national and local economies.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicGlobalisation

Question paper p.7 Mark scheme p.10 Examiner report p.20 Open in the tool

Section B

Case study

UK national living wage increase: implications for employers

Extracts: E: UK national living wage increase: implications for employers · F: Tackling the skills shortage in the UK housebuilding sector · G: UK inflation rate 2019–2024 · H: The Competition and Markets Authority (CMA) launches formal investigation into · I: The European Union’s (EU) new Deforestation Regulation (EUDR)

In the extracts: EUDR, CMA, Deforestation Regulation, Chief Executive, European Union, Chief Executive of Currys, Sarah Cardell, Alex Baldock, Unemployment, Competition

Q2(a)Discuss8 marks

Discuss the effects of an increase in the national living wage on employment.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicGlobal labour markets

Question paper p.10 Mark scheme p.12 Insert Examiner report p.27 Open in the tool

Q2(b)Assess10 marks

Assess the extent to which supply-side policies for reducing skills shortages may involve policy conflicts or trade-offs.

Mark splitKnowledge 2Application 2Analysis 3Evaluation 3

TopicScarcity, choice and potential conflictsIntroduction to macroeconomic policyGlobal labour markets

Question paper p.11 Mark scheme p.14 Insert Examiner report p.29 Open in the tool Practise the AD/AS diagram

Q2(c)Assess12 marks

Assess the potential trade-off between inflation and unemployment.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicScarcity, choice and potential conflictsThe economic cycle

Question paper p.13 Mark scheme p.16 Insert Examiner report p.33 Open in the tool Practise the Phillips curve diagram

Q2(d)Evaluate20 marks

Evaluate the benefits of regulation in a market.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicMarket power and market failure

Question paper p.15 Mark scheme p.18 Examiner report p.38 Open in the tool

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

Diseconomies of Scale

Section B

UK national living wage increase: implications for employers

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