Unit 1: Markets in action · WEC11/01

Edexcel International AS Unit 1, January 2022

All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 1 (January 2022), Markets in action. Case studies: Cotton and clothing. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paperMark schemeExaminer report

Section A

Q11 mark
1 Which one of the following is a function of the price mechanism?
  1. AAn increase in the price of hand sanitisers, caused by an increase in demand, will ration them to those who are most able to pay
  2. BA decrease in the price of carrots, caused by excess supply, provides farmers with the incentive to increase supply
  3. CA decrease in the price of tinned meat is a signal to producers that demand for it is increasing
  4. DAn increase in the price of petrol is a signal to the government to impose a maximum price
Show the answer

The answer is A.

TopicDemand, supply and market equilibrium

Question paper p.2Mark scheme p.4Examiner report p.3Open in the tool
Q41 mark
4 The diagram shows the market for vaccinations against measles. Costs and G benefits per MPC=MSC vaccination
  1. AP1 B P2 C F E MPB MSB 0 Q1 Q2 Quantity of vaccinations Which one of the following can be deduced from the diagram? A The social optimum output is Q1
  2. BThe market equilibrium output is Q2
  3. CWelfare gain is shown by the area BCE
  4. DWelfare gain is shown by the area ABC
Show the answer

The answer is D.

TopicDemand, supply and market equilibrium

Question paper p.4Mark scheme p.4Examiner report p.3Open in the toolPractise the positive externality diagram
Q61 mark
Which one of the following can be deduced from the table?
  1. AUtility is maximised when three glasses of fruit juice are consumed
  2. BDiminishing marginal utility sets in with the consumption of the fourth glass of fruit juice
  3. CDiminishing marginal utility sets in with the consumption of the fifth glass of fruit juice
  4. DUtility is maximised when six glasses of fruit juice are consumed
Show the answer

The answer is B.

TopicBehavioural economics and consumer choice

Question paper p.6Mark scheme p.5Examiner report p.3Open in the tool

Section B

Section C

Case study

Cotton and clothing

Extracts: Figure 1: World price of cotton, $ per lb, April 2020 to January 2021 · Extract A: World cotton price rises · Extract B: Clothing manufacturers should reduce environmental costs · Extract C: Indian Government to remove clothing subsidy · Figure 1: based on data taken from https://markets.businessinsider.com/commodities/cotton-price · Extract A: adapted from 'Masks, surgical gowns & export boost the prices of organic cotton', Madhvi Sally,

In the extracts: Economic Times, Madhvi Sally, Sibylle Michel, Textile Network, United Nations, Clothing, Indian, Cotton, Pakistan, According

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.