Unit 1: Markets in action · WEC11/01
Edexcel International AS Unit 1, June 2021
All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 1 (June 2021), Markets in action. Case studies: The market for sugar. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Section A
- ABoth statements are positive
- BStatement 1 is positive and statement 2 is normative
- CBoth statements are normative
- DStatement 1 is normative and statement 2 is positive
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The answer is B.
- AConsumers are good at computation
- BConsumers aim to maximise their utility
- CConsumers are influenced by the behaviour of others
- DConsumers feel undervalued by their current provider
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The answer is C.
- AThe free-rider problem that results in the underprovision of public goods
- BHigher prices create an incentive for firms to increase the production of a good
- CNew government regulations that result in excessive administration costs
- DGovernment provision of healthcare to move towards the social optimum output
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The answer is A.
TopicMarket failure: public goods, information and immobility
- AThe social optimum quantity is Q1 and price is P1
- BThe market equilibrium quantity is Q2 and price is P2
- CThe welfare loss area is RTU
- DThe welfare loss area is RST
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The answer is D.
- AConsumer goods Which point on the diagram shows the position that will lead to the fastest rate of economic growth? A
- B
- C
- D
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The answer is C.
- AA decrease in real income will result in a more than proportionate decrease in demand for butter
- BAn increase in real income will result in a less than proportionate increase in demand for coffee
- CA decrease in real income will result in a more than proportionate increase in demand for margarine
- DAn increase in price will result in a less than proportionate decrease in demand for tea
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The answer is B.
Section B
Section C
Case study
The market for sugar
Extracts: Figure 1: World price of sugar, US$ per kg, June 2016 - June 2019 · Extract A: Global production of sugar · Extract B: Overconsumption of sugar · Extract C: Indian subsidy for sugar production · Figure 1: based on data taken from https://www.indexmundi.com/commodities/?commodity=sugar&mont · Extract A: adapted from 'Sugar prices are the lowest in a decade, but haven't hit bottom yet', Myra P
In the extracts: USA, Australia, China, Europe, India, Sugar, Thailand
TopicMarket failure: public goods, information and immobility
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.