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

Edexcel B A-level Paper 3, November 2020

All 8 written questions from Edexcel B A-level Paper 3 (November 2020), The economic environment and business. Case studies: UK average house prices and Average output price of potatoes in the United Kingdom (UK). 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

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

UK average house prices

Extracts: A: UK average house prices · B: Skills shortages harming UK business, employers warn in 2018 · C: UK unemployment rate 2013–2018 · D: Inflation rate – % change over 12 months · E: Bank of England raises alarm over surge in high-risk lending

In the extracts: Bank of England, National Statistics, Philip Hammond, Year Office, Treasury, Britain, BCC, Federation of Small Businesses, Office for National Statistics, British Chambers

Q1(a)Discuss8 marks

Discuss the extent to which the UK housing market can be described as a market bubble.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicMarket failure across the economyRisk and the financial sector

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

Q1(b)Assess10 marks

Assess the effectiveness of supply-side policies to ease skills shortages in the labour market.

Mark splitKnowledge 2Application 2Analysis 3Evaluation 3

TopicGlobal labour marketsIntroduction to macroeconomic policy

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

Q1(c)Assess12 marks

Using Extract C, assess the extent of the trade-off between unemployment and inflation.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicScarcity, choice and potential conflictsThe economic cycle

Question paper p.10 Mark scheme p.8 Insert Examiner report p.7 Open in the tool Practise the Phillips curve diagram

Q1(d)Evaluate20 marks

Evaluate the role of the central bank in reducing economic risk and uncertainty.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicEnterprise, business and the economyRisk and the financial sector

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

Section B

Case study

Average output price of potatoes in the United Kingdom (UK)

Extracts: F: Average output price of potatoes in the United Kingdom (UK) · G: Inside Walkers – the biggest crisp factory in the world · H: Excerpt from the Agricultural Price Index (API) – September 2018 · I: Competitiveness of food and drink manufacturers hindered by rising costs · J: Currency risk

In the extracts: Irish, United Kingdom, Britain, Agricultural, Walkers, Ireland, Brexit, Fresh, API, McDonald Mushrooms in Tipperary

Q2(a)Discuss8 marks

Discuss the benefits to Walkers of using forward markets to buy potatoes.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicLife in a global economyIntroducing the market

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

Q2(b)Assess10 marks

Using an appropriate diagram, assess the possible impact of this on the potato market in 2018.

Mark splitKnowledge 2Application 2Analysis 3Evaluation 3

TopicLife in a global economyIntroducing the market

Question paper p.20 Mark scheme p.15 Insert Examiner report p.15 Open in the tool Draw it: supply and demand diagram

Q2(c)Assess12 marks

Assess the extent to which rising input costs are a problem for food and drink firms.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicLife in a global economyIntroducing the market

Question paper p.22 Mark scheme p.17 Insert Examiner report p.17 Open in the tool

Q2(d)Evaluate20 marks

Evaluate the implications of exchange rate volatility for firms.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicLife in a global economy

Question paper p.24 Mark scheme p.19 Examiner report p.19 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

UK average house prices

Section B

Average output price of potatoes in the United Kingdom (UK)

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