Paper 1: Markets, consumers and firms · 8EB0/01

Edexcel B AS Paper 1, June 2019

All 11 written questions from Edexcel B AS Paper 1 (June 2019), Markets, consumers and firms. Case studies: Float-ology: Ultimate relaxation at The Sanctuary, House prices rise at fastest rate since January, says… and Yet more growth in the coffee shop market. 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

Float-ology: Ultimate relaxation at The Sanctuary

Extracts: A: Float-ology: Ultimate relaxation at The Sanctuary · B: Selected financial data from The Sanctuary

In the extracts: Sanctuary, Variable, Sanctuary Floatation, Donna and Danny, Sanctuary Fixed, West Yorkshire, Float-ology, Installing, Ultimate, Selected

Q1(a)Define2 marks

What is meant by the term ‘fixed costs’?

Mark splitKnowledge 2

TopicRevenue, costs, profits and cash

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

Q1(b)Calculate4 marks

Using Extract B, calculate the break-even point for The Sanctuary. You are advised to show your working.

Mark splitKnowledge 1Application 3

TopicRevenue, costs, profits and cash

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

Q1(c)Explain4 marks

Explain one likely benefit of leasing for The Sanctuary.

Mark splitKnowledge 1Application 2Analysis 1

TopicRevenue, costs, profits and cash

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

Q1(d)Discuss8 marks

Using Extracts A and B, discuss whether the decision to open The Sanctuary for long hours was based on financial reasons.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicMarket failure and government intervention

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

Q1(e)Assess12 marks

Assess the potential benefits for The Sanctuary of purchasing a second pod.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicMarket failure and government intervention

Question paper p.7 Mark scheme p.8 Examiner report p.4 Open in the tool

Section B

Case study

House prices rise at fastest rate since January, says Halifax bank

Extracts: C: House prices rise at fastest rate since January, says Halifax bank · D: £10bn new funding for Help to Buy Loan scheme · E: Average price by property in the UK

In the extracts: Buy Loan, Help, Halifax, Bank of England, Sophie Christie, Jan Feb Mar, Apr May Jun, Jul Aug Sep, UK Average, Telegraph

Q2(a)Define2 marks

What is meant by the term ‘supply’?

Mark splitKnowledge 2

TopicThe role of credit in the economyIntroducing the market

Question paper p.11 Mark scheme p.10 Examiner report p.5 Open in the tool

Q2(b)Illustrate4 marks

Using a supply and demand diagram, illustrate the excess supply or demand created by the housing shortage.

Mark splitKnowledge 2Application 1Analysis 1

TopicIntroducing the market

Question paper p.11 Mark scheme p.10 Examiner report p.5 Open in the tool Draw it: supply and demand diagram

Q2(c)Explain4 marks

Using Extract C, explain the problem of scarcity.

Mark splitKnowledge 1Application 2Analysis 1

TopicScarcity, choice and potential conflicts

Question paper p.12 Mark scheme p.11 Examiner report p.5 Open in the tool

Q2(d)Discuss8 marks

Using the data in Extracts D and E, discuss the merits of this type of government intervention in dealing with market failure in the housing market.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicMarket failure and government intervention

Question paper p.13 Mark scheme p.12 Examiner report p.5 Open in the tool

Q2(e)Assess12 marks

Assess whether a shortage of land is the main reason for rising house prices.

Mark splitKnowledge 2Application 2Analysis 4Evaluation 4

TopicThe role of credit in the economyIntroducing the market

Question paper p.15 Mark scheme p.14 Examiner report p.6 Open in the tool

Section C

Case study

Yet more growth in the coffee shop market

Extracts: F: Yet more growth in the coffee shop market

In the extracts: Starbucks Coffee Company, Costa Coffee, Consumers, Leading, Caff, Nero

Q3Evaluate20 marks

The functions of the price mechanism to allocate resources are rationing, incentives and signalling. Evaluate which of these functions is likely to have had the biggest impact on the coffee shop market in the UK.

Mark splitKnowledge 4Application 4Analysis 6Evaluation 6

TopicIntroducing the market

Question paper p.18 Mark scheme p.16 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

Float-ology: Ultimate relaxation at The Sanctuary

Section B

House prices rise at fastest rate since January, says Halifax bank

Section C

Yet more growth in the coffee shop market

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