Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, June 2022

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (June 2022), Business behaviour. Case studies: The impact of the global health crisis. 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 Ceteris paribus, which one of the following would reduce the geographical mobility of labour within a country?

AAn increase in relocation grants paid by the government
BAn increase in the costs of relocating from one region to another
CMore accurate information about job opportunities in different locations
DSimilar average house prices in different regions of the country

Show the answer

The answer is B.

TopicThe labour market

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

Q21 mark

Which one of the following can be deduced from the diagram?

AThe firm is producing the allocatively efficient level of output at price P1
BThe firm will leave the industry if average costs fall
CThe firm is producing the productively efficient level of output Q1
DThe firm is making normal profit

Show the answer

The answer is D.

TopicRevenues, costs and profits

Question paper p.2 Mark scheme p.4 Examiner report p.4 Open in the tool Practise the monopolistic competition diagram Practise the perfect competition diagram

Q31 mark

Which one of the following is the average variable cost at 300 units?

A£15
B£27
C£29
D£44

Show the answer

The answer is C.

TopicRevenues, costs and profits

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

Q41 mark

Which one of the following is the five-firm concentration ratio for airlines operating domestic flights in the USA?

A66.9%
B73.3%
C77.9%
D78.8%

Show the answer

The answer is B.

TopicBusiness growth, mergers and market structure

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

Q51 mark

Which one of the following would limit the impact of government intervention in the housing market?

APerfect mobility of resources
BA flexible labour market
CPerfect knowledge of the housing market
DRegulatory capture

Show the answer

The answer is D.

TopicThe labour market

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

Q61 mark

Which one of the following combinations is the most likely impact of the introduction of this monopsonistic labour market? Wages Number of employees

ALower Lower
BLower Higher
CHigher Lower
DHigher Higher

Show the answer

The answer is A.

TopicThe labour market

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

Section B

Case study

The impact of the global health crisis

Extracts: Figure 1: Amazon's annual revenue, 2010-2020 (billion US dollars) · Figure 2: Worldwide market share of cloud infrastructure providers by revenue, · Extract A: Amazon · Extract B: Small and medium-size enterprises (SMEs) in South Africa · Figure 1: www.statista.com/graphic/1/266282/annual-net-revenue-of-amazoncom.jpg · Figure 2: https://www.ibtimes.com/infographic-amazon-leads-100-billion-cloud-market-2920755

In the extracts: South Africa SMEs, Alibaba Cloud, Amazon Prime, Billion US, Google Cloud, IBM Cloud, Microsoft Azure, Oracle Cloud, South African, Tencent Cloud

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the percentage change in Amazon's revenue between 2010 and 2020.

Mark splitApplication 2

TopicBusiness growth, mergers and market structure

Question paper p.7 Mark scheme p.6 Examiner report p.3 Open in the tool

Q7(b)Explain4 marks

With reference to Figure 2, explain the market structure of cloud infrastructure providers.

Mark splitKnowledge 2Application 2

TopicBusiness growth, mergers and market structure

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

Q7(c)Analyse6 marks

With reference to Extract A, analyse the likely impact on consumers of two methods by which Amazon competes with other retailers.

Mark splitKnowledge 2Application 2Analysis 2

TopicBusiness growth, mergers and market structure

Question paper p.9 Mark scheme p.8 Examiner report p.10 Open in the tool

Q7(d)Examine8 marks

With reference to Extract A, examine two likely effects of the global health crisis on Amazon's profits.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicBusiness growth, mergers and market structure

Question paper p.11 Mark scheme p.9 Examiner report p.15 Open in the tool

Q7(e)Discuss14 marks

With reference to Extract B and your own knowledge, discuss reasons why many SMEs in South Africa shut down in 2020. Illustrate your answer with an appropriate diagram.

Mark splitEvaluation 6

TopicBusiness growth, mergers and market structure

Question paper p.13 Mark scheme p.10 Examiner report p.3 Open in the tool Draw it: perfect competition diagram Or: cost curves diagram

Section C

Q8OptionalEvaluate20 marks

Evaluate the benefits of growth by merger. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicBusiness growth, mergers and market structure

Question paper p.16 Mark scheme p.14 Examiner report p.4 Open in the tool Draw it: cost curves diagram Or: monopoly diagram

Q9OptionalEvaluate20 marks

Evaluate methods that a government could use to promote competition in a market. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

Question paper p.16 Mark scheme p.18 Examiner report p.35 Open in the tool Draw it: monopoly diagram Or: perfect competition diagram

Q10OptionalEvaluate20 marks

Evaluate the use of non-price and price competition in oligopolistic markets. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicOligopoly and monopolistic competition

Question paper p.16 Mark scheme p.22 Examiner report p.48 Open in the tool Draw it: kinked demand diagram

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 impact of the global health crisis

Section C

Other years of Edexcel International A-level Unit 3

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