Unit 1: Markets in action · WEC11/01

Edexcel International AS Unit 1, June 2019

All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 1 (June 2019), Markets in action. Case studies: The market for meat. 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

Q21 mark
2 The Chinese Government introduced a carbon emissions trading scheme. The objective of this tradeable pollution permit scheme is to reduce carbon emissions by
  1. Aforcing highly polluting firms to buy permits from low polluting firms
  2. Bforcing low polluting firms to buy permits from highly polluting firms
  3. Cpaying subsidies to firms who manage to reduce their carbon emissions
  4. Dtaxing firms who pollute less than their allowance
Show the answer

The answer is A.

TopicMarket failure: externalities

Question paper p.2Mark scheme p.4Open in the tool
Q31 mark
3 Which one of the following is an example of market failure?
  1. ALower prices create an incentive for firms to switch production to more profitable activities
  2. BExcessive administrative costs are involved in meeting environmental regulations
  3. CGovernment provision of street lights that is greater than the social optimum output
  4. DInsured consumers take more risks in the knowledge that the insurer will pay any resulting costs
Show the answer

The answer is D.

TopicMarket failure: public goods, information and immobility

Question paper p.2Mark scheme p.4Open in the tool
Q51 mark
5 The diagram shows the relationship between the price of Xbox games consoles and the quantity demanded of PlayStation 4 games consoles. Price per Xbox games console D 0 Quantity demanded of PlayStation 4 games consoles It can be deduced from the diagram that the two goods are
  1. Acomplementary goods
  2. Binferior goods
  3. Csubstitute goods
  4. Dunrelated goods
Show the answer

The answer is C.

TopicDemand, supply and market equilibrium

Question paper p.4Mark scheme p.4Open in the toolPractise the YED and XED diagram
Q61 mark
Which one of the following can be deduced from the table?
  1. ACorn, rice and wheat have price elastic supply
  2. BA 10% increase in the price of corn will cause a 23% increase in quantity supplied
  3. CA 10% increase in the price of rice will cause a 2.7% decrease in quantity supplied
  4. DA 10% increase in the price of wheat will cause a 3.1% increase in quantity supplied
Show the answer

The answer is D.

TopicElasticities of demand and supply

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

Section B

Section C

Case study

The market for meat

Extracts: Figure 1: Australian consumers' income elasticity of demand for lamb · Figure 2: World price of lamb, US$ per kg, March 2016 to March 2018 · Extract A: The price of lamb · Extract B: Indirect tax on meat needed to address climate change · Figure 1: 'The income elasticity of meat: a meta-analysis' 28th September 2010, Craig Gallet, The Australian · Figure 2: based on data taken from https://www.indexmundi.com/commodities/

In the extracts: Angus Brown, Australian Journal, Craig Gallet, Damian Carrington, Meat, USA, Agricultural

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.