Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, October 2023

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (October 2023), Business behaviour. Case studies: The electric vehicle market in China. 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

Ceteris paribus, which one of the following might result from this fall in Japan's population of working age?

AA decrease in job vacancies
BAn increase in the rate of unemployment
CA decrease in immigration into Japan
DAn increase in wage rates

Show the answer

The answer is D.

TopicThe labour market

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

Q21 mark

Ceteris paribus, which one of the following would increase market contestability?

AAn increase in legal costs to start a business
BAn increase in legislation to control mergers
CAn increase in patent protection
DAn increase in regulatory capture

Show the answer

The answer is B.

TopicCompetition policy and government intervention

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

Q31 mark

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

AThe street food seller is operating at the short-run equilibrium output
BThe street food seller is operating at the long-run equilibrium output
CThe street food seller is operating at the productively efficient level of output
DThe street food seller is operating at the allocatively efficient level of output

Show the answer

The answer is A.

TopicPerfect competition and monopoly

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

Q41 mark

Ceteris paribus, which one of the following combinations indicates the impact of this increase in rental costs on Big Bazaar? Profit Price

ANo change No change
BRise Decrease
CFall No change
DNo change Decrease

Show the answer

The answer is C.

TopicRevenues, costs and profits

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

Q51 mark

Which one of the following is the average fixed cost if the shirt manufacturer is producing 10 000 shirts?

A$5
B$6.67
C$10
D$20

Show the answer

The answer is C.

TopicRevenues, costs and profits

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

Q61 mark

Which one of the following is the most likely reason for this price difference?

AThe demand for cinema tickets is more price inelastic in the daytime than in the evening
BThe demand for cinema tickets is more price elastic in the daytime than in the evening
CThe supply of cinema tickets is perfectly price elastic
DThe supply of cinema tickets is more price elastic in the evening than in the daytime

Show the answer

The answer is B.

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

Section B

Case study

The electric vehicle market in China

Extracts: Figure 1: Market share for electric vehicle passenger sales, based on · Figure 2: Tesla electric vehicle prices, 2022 (Yuan, 000s) · Extract A: Changes in the Chinese electric vehicle market · Extract B: Tesla in China · Figure 1: : https://www.schroders.com/en/insights/economics/why-chinas-electric-vehicle-market-is-at-full-throttle/ · Figure 2: : https://www.bloomberg.com/news/articles/2022-10-24/tesla-cuts-china-prices-partly-reversing-previous-

In the extracts: Rear Wheel Drive, BYD NIO, China Tesla, Li Auto, Model, Chinese, Shanghai, GAC, GWM, Performance

Q7(a)Calculate2 marks

With reference to Figure 2, calculate the percentage change in the price of the Model 3 Rear Wheel Drive vehicle between January and October 2022.

Mark splitApplication 2

TopicBusiness growth, mergers and market structure

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

Q7(b)Analyse6 marks

With reference to Extract A, analyse two reasons why sales of electric vehicles in China increased. Illustrate your answer with a supply and demand diagram.

Mark splitKnowledge 2Application 2Analysis 2

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.7 Examiner report p.5 Open in the tool Draw it: supply and demand diagram

Q7(c)Explain4 marks

With reference to Figure 1 and Extract B, explain the market structure that best describes the electric vehicle market in China.

Mark splitKnowledge 2Application 2

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.9 Examiner report p.5 Open in the tool

Q7(d)Examine8 marks

With reference to the first two paragraphs of Extract B, examine the impact of Tesla producing its electric vehicles in China on its costs and profits. Illustrate your answer with a costs and revenues diagram.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.10 Examiner report p.6 Open in the tool Draw it: cost curves diagram

Q7(e)Discuss14 marks

With reference to the information provided and your own knowledge, discuss the impact of Tesla reducing its prices on the behaviour of other electric vehicle manufacturers.

Mark splitEvaluation 6

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.12 Examiner report p.3 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate policies that a government could use to control and regulate monopolies, such as PTCL. Illustrate your answer with an appropriate diagram(s).

TopicPerfect competition and monopoly

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

Q9OptionalEvaluate20 marks

Evaluate policies that a government could use to reduce the geographical immobility of labour and the occupational immobility of labour. Refer to industries of your choice in your answer.

TopicThe labour market

Question paper p.16 Mark scheme p.19 Examiner report p.4 Open in the tool

Q10OptionalEvaluate20 marks

Evaluate the impact that the size of a business has on its efficiency. Illustrate your answer with an appropriate diagram(s).

TopicRevenues, costs and profits

Question paper p.16 Mark scheme p.24 Examiner report p.8 Open in the tool Draw it: cost curves 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 electric vehicle market in China

Section C

Other years of Edexcel International A-level Unit 3

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