Unit 1: Markets in action · WEC11/01
Edexcel International AS Unit 1, January 2021
All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 1 (January 2021), Markets in action. Case studies: The markets for oil and electric cars. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Section A
- AGovernment intervention leads to a net welfare gain
- BA new environmental regulation leads to excessive administrative costs
- CSpeculators cause a market bubble to emerge in the housing market
- DFree riders lead to the underprovision of public goods
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The answer is B.
- AFree market
- BCommand
- CMixed
- DIrrational
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The answer is C.
- ATablet computers
- BDesigner clothing
- CHousing
- DCopper
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The answer is D.
- AUtility is maximised when three glasses of milk are consumed
- BDiminishing marginal utility sets in with the consumption of the fourth glass of milk
- CDiminishing marginal utility sets in with the consumption of the fifth glass of milk
- DUtility is maximised when six glasses of milk are consumed
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The answer is B.
- AExcess supply is Q1Q2
- BExcess demand is Q1Q2
- CSupply contracts from Qe to Q2
- DDemand extends from Qe to Q1
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The answer is A.
- AA 10% increase in income leads to a 24.6% decrease in demand for cars
- BA 10% increase in income leads to a 14.8% decrease in demand for furniture
- CA 5% increase in income leads to a 2.4% increase in demand for petrol
- DA 5% increase in income leads to a 1.85% increase in demand for public transport
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The answer is C.
Section B
TopicMarket failure: public goods, information and immobility
Section C
Case study
The markets for oil and electric cars
Extracts: Figure 1: Global price of oil per barrel, US$ 2016-2020 · Extract A: Oil price fall · Extract B: Canadian electric car subsidy · Figure 1: based on data taken from https://www.indexmundi.com/commodities/?commodity=crude-oil&months=240 · Extract A: adapted from 'Eight days that shook the oil market - and the world', Derek Brower, Anjli Raval and David · Extract B: adapted from 'Electric car incentives in Canada - what to know about the rebate that includes Tesla 3', Katie
In the extracts: Saudi Arabia, VW Golf, Canada's, Canadian, India, Oil, Indirect, Norway, Road, Russia
Section D
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.