Section A
Q11 mark
1 Between 2009 and 2019 real house prices in Sydney, Australia rose by 40%. This price increase was more than in any other part of Australia. What might be the effect of this increase in house prices in Sydney on the mobility of labour?
- AA decrease in the geographical mobility of labour
- BA decrease in the occupational mobility of labour
- CAn increase in the geographical mobility of labour
- DAn increase in the occupational mobility of labour
Show the answer
The answer is A.
TopicThe labour market
Q21 mark
2 The chart shows the market share of smartphone companies in India in quarter 4, 2019. Others 13% Xiaomi Realme 27% 8% Oppo 12% 19% 21% Samsung Vivo What is the 4-firm concentration ratio?
- A67%
- B79%
- C80%
- D87%
Show the answer
The answer is B.
TopicBusiness growth, mergers and market structure
Q31 mark
Which one of the following will be true for a hairdressing salon in long-run equilibrium?
- AIt is productively efficient
- BIt makes supernormal profit
- CIt is allocatively efficient
- DIt makes normal profit
Show the answer
The answer is D.
TopicRevenues, costs and profits
Q41 mark
Which one of the following would have caused the elasticity of the supply of labour to become more elastic?
- AA fall in net migration
- BA rise in the level of welfare benefits
- CA fall in income tax rates
- DA rise in trade union membership
Show the answer
The answer is C.
TopicThe labour market
Q51 mark
Which one of the following is the most likely effect of this privatisation?
- AA decrease in X-inefficiency
- BA decrease in productive efficiency
- CA decrease in consumer choice
- DA decrease in share ownership
Show the answer
The answer is A.
TopicPerfect competition and monopoly
Q61 mark
Which one of the following best characterises such a firm? Marginal Revenue
- ARising
- BConstant
- CNegative
- DFalling
Show the answer
The answer is B.
TopicRevenues, costs and profits
Section B
Case study
Tata Steel
Extracts: Figure 1: Tata Steel's total revenue, 2015-2019, in billion Rupees (Rs) · Figure 2: Tata Steel's profit, 2015-2019, in billion Rupees (Rs) · Extract A: The Indian steel industry · Extract B: Merger proposal · Extract C: Merger blocked · Extract A: adapted from
In the extracts: European Competition Commission, Billions Rs, Tata Steel's, ArcelorMittal SA, Thyssenkrupp, Netherlands, Employees, Indian, Merger, Rupees
Q7(a)Calculate2 marks
With reference to Figure 1 and Figure 2, calculate Tata Steel's total costs for steel production in 2019.
Mark splitApplication 2
TopicRevenues, costs and profits
Q7(b)Explain4 marks
Explain what is meant by the term 'monopsony employer' (Extract C, line 11).
Mark splitKnowledge 2Application 2
TopicThe labour market
Q7(c)Examine8 marks
With reference to Extract B, examine the likely effects of the proposed merger between Tata Steel and Thyssenkrupp on the profits of European car manufacturers. Illustrate your answer with an appropriate diagram.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicBusiness growth, mergers and market structure
Q7(d)Analyse6 marks
With reference to Extract C, analyse two reasons why the proposed merger between Tata Steel and Thyssenkrupp was blocked by the European Competition Commission.
Mark splitKnowledge 2Application 2Analysis 2
TopicBusiness growth, mergers and market structure
Q7(e)Discuss14 marks
With reference to Extract A, Extract B and your own knowledge, discuss the benefits to Tata Steel and Thyssenkrupp of the proposed horizontal integration. Illustrate your answer with an appropriate diagram.
Mark splitEvaluation 6
TopicBusiness growth, mergers and market structure
Section C
Q8OptionalEvaluate20 marks
Evaluate the disadvantages of an oligopolistic market for producers and consumers. Refer to an industry of your choice in your answer. Illustrate your answer with an appropriate diagram(s).
Mark splitEvaluation 8
TopicOligopoly and monopolistic competition
Q9OptionalEvaluate20 marks
Evaluate whether a firm should always shut down if its costs of production are greater than its revenue. Refer to an industry of your choice in your answer. Illustrate your answer with an appropriate diagram(s).
Mark splitEvaluation 8
Q10OptionalEvaluate20 marks
Evaluate the likely microeconomic effects of the introduction of a national minimum wage on businesses and workers in the tourism industry. Illustrate your answer with an appropriate diagram(s).
Mark splitEvaluation 8
TopicThe labour market
