Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, January 2020

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (January 2020), Business behaviour. Case studies: The electric car 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

Q11 mark

1 In 2014 the Irish Government allowed private sector bus operators to bid for public transport contracts for the first time. This is an example of

Agovernment failure
Btrade liberalisation
Ccompetitive tendering
Dregulation

Show the answer

The answer is C.

Question paper p.2 Mark scheme p.4 Examiner report p.5 Open in the tool

Q21 mark

2 The table shows the market share by value of retail sales of grocery stores in the UK. Store March 2016 (%) March 2017 (%) Tesco 28.1 27.6 Sainsbury's 16.4 16.1 Asda 16.2 15.7 Morrisons 10.5 10.4 Co-op 6.1 6.1 Aldi 6.0 6.8 Others 16.7 17.3 (Source: https://www.statista.com/statistics/280208/grocery- market-share-in-the-united-kingdom-uk/) From the data it can be deduced that

Athe 3-firm concentration ratio was 50.7% in March 2016
Bthe 5-firm concentration ratio was 87.3% in March 2016
Cthe 3-firm concentration ratio was 49.4% in March 2017
Dthe 5-firm concentration ratio was 76.6% in March 2017

Show the answer

The answer is D.

TopicBusiness growth, mergers and market structure

Question paper p.2 Mark scheme p.4 Examiner report p.5 Open in the tool

Q31 mark

Which one of the following can be deduced from the above information?

AThere had been a decrease in the skills of the workforce
BThere had been a decrease in house prices and rents
CThere had been an increase in transferable skills
DThere had been an increase in the number of job vacancies

Show the answer

The answer is A.

TopicThe labour market

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

Q41 mark

Which one of the following must be true as output rises from point Q₁ to point Q₂?

AThere are diminishing returns
BThere are economies of scale
CThere are diseconomies of scale
DThere are falling total costs

Show the answer

The answer is B.

TopicBusiness growth, mergers and market structure

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

Q51 mark

Which one of the following is true?

AMarginal revenue is equal to marginal cost
BAverage revenue is equal to average cost
CAverage fixed costs are rising
DMarginal revenue is zero

Show the answer

The answer is D.

TopicRevenues, costs and profits

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

Q61 mark

6 Which one of the following is most likely to cause the demand for labour to be elastic?

ALabour costs form a high proportion of total costs
BLabour cannot be easily replaced by capital
CConsumer demand for the final product is inelastic
DA long training period is needed once workers have been recruited

Show the answer

The answer is A.

TopicThe labour market

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

Section B

Case study

The electric car market

Extracts: Figure 1: UK electric car registrations, 2013 - 2017 · Extract A: Financial performance of Tesla · Extract B: New entrants in the luxury electric car market · Figure 1: based on data taken from www.smmt.co.uk/vehicle-data/evs-and-afvs-registrations/ · Extract A: adapted from https://www.theguardian.com/technology/2018/may/02/tesla-loss-model-3- · Extract B: adapted from Dyson's car faces low barriers to entry but high barriers to success © The Economist

In the extracts: Tesla's Model, Apple, BMW, USA, American, Audi, Dyson's, Financial, Finding, Initially

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the percentage change in electric car sales from 2013 to 2017. You are advised to show your working.

Mark splitApplication 2

TopicRevenues, costs and profits

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

Q7(b)Explain4 marks

With reference to Extract A and Extract B, explain what is meant by specialisation.

Mark splitKnowledge 2Application 2

TopicRevenues, costs and profits

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

Q7(c)Examine8 marks

With reference to Extract A, examine the likely effect of a decrease in variable costs on Tesla's profits. Illustrate your answer with an appropriate diagram(s).

Mark splitKnowledge 2Application 2Analysis 2

TopicRevenues, costs and profits

Question paper p.8 Mark scheme p.7 Examiner report p.6 Open in the tool Draw it: cost curves diagram Or: monopoly diagram

Q7(d)Analyse6 marks

With reference to Extract B, analyse the relationship between price elasticity of demand and total revenue. Illustrate your answer with an appropriate diagram(s).

Mark splitKnowledge 2Application 2Analysis 2

TopicRevenues, costs and profits

Question paper p.10 Mark scheme p.9 Examiner report p.6 Open in the tool Draw it: PED and revenue diagram

Q7(e)Discuss14 marks

With reference to the information provided, discuss the significance of barriers to entry and exit in the electric car market for new entrants, such as Dyson.

Mark splitEvaluation 6

TopicPerfect competition and monopoly

Question paper p.12 Mark scheme p.10 Examiner report p.4 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate the possible benefits of a demerger for the business and its workforce. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicBusiness growth, mergers and market structure

Question paper p.16 Mark scheme p.12 Examiner report p.7 Open in the tool Draw it: cost curves diagram

Q9OptionalEvaluate20 marks

Evaluate the likely benefits of a monopoly to its consumers. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicPerfect competition and monopoly

Question paper p.16 Mark scheme p.15 Examiner report p.7 Open in the tool Draw it: monopoly diagram

Q10OptionalEvaluate20 marks

Evaluate the benefits of an increase in the minimum wage on businesses and workers. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicThe labour market

Question paper p.16 Mark scheme p.18 Examiner report p.4 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

Section B

The electric car market

Section C

Other years of Edexcel International A-level Unit 3

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