Unit 1: Markets in action · WEC11/01

Edexcel International AS Unit 1, June 2023

All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 1 (June 2023), Markets in action. Case studies: Renewables, lithium and smartphones. 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

1 Which one of the following combinations of characteristics best describes private goods?

ARival and excludable
BRival and non-excludable
CNon-rival and excludable
DNon-rival and non-excludable

Show the answer

The answer is A.

TopicMarket failure: public goods, information and immobility

Question paper p.2 Mark scheme p.4 Examiner report p.7 Open in the tool

Q21 mark

Which one of the following factors is most likely to cause demand for a product to be price inelastic?

AThere are legal constraints on manufacturing the product
BThere are large stocks of the product available
CThe product has many substitutes
DThe product lacks substitutes

Show the answer

The answer is D.

TopicElasticities of demand and supply

Question paper p.2 Mark scheme p.4 Examiner report p.7 Open in the tool

Q31 mark

Which one of the following can be deduced from the table?

ADemand for NBA tickets is price inelastic
BDemand for NBA tickets is price elastic
CDemand for NBA tickets is income elastic
DDemand for NBA tickets is income inelastic

Show the answer

The answer is B.

TopicElasticities of demand and supply

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

Q41 mark

4 In South Africa demand for electric blankets increased by 250% in 2022. Which of the following combinations is the most likely impact on the market for electric blankets? Consumer surplus Price

ADecrease Decrease
BDecrease Increase
CIncrease Increase
DIncrease Decrease

Show the answer

The answer is C.

TopicThe price mechanism, consumer and producer surplus

Question paper p.4 Mark scheme p.4 Examiner report p.48 Open in the tool

Q51 mark

Which one of the following is the most likely explanation of this behaviour?

AThese consumers experienced inertia
BThese consumers experienced habitual behaviour
CThese consumers aimed to maximise their utility
DThese consumers aimed to minimise their utility

Show the answer

The answer is C.

TopicBehavioural economics and consumer choice

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

Q61 mark

Which one of the following can be deduced from the table?

AA10% increase in the price of diesel vehicles will result in a 4.8% decrease in the quantity of battery electric vehicles demanded
BA10% increase in the price of diesel vehicles will result in a 0.32% increase in the quantity of hybrid vehicles demanded
CA5% increase in the price of diesel vehicles will result in a 3.2% decrease in the quantity of hybrid vehicles demanded
DA5% increase in the price of diesel vehicles will result in a 2.4% increase in the quantity of battery electric vehicles demanded

Show the answer

The answer is D.

TopicElasticities of demand and supply

Question paper p.5 Mark scheme p.5 Examiner report p.48 Open in the tool

Section B

Q7Draw4 marks

Draw a diagram to illustrate the likely impact of this change on the world market for olives.

Mark splitKnowledge 1Application 3

Question paper p.7 Mark scheme p.6 Examiner report p.3 Open in the tool Draw it: supply and demand diagram

Q8Explain4 marks

With reference to the Maldives, explain the difference between 'market failure' and 'government failure'.

Mark splitKnowledge 2Application 2

TopicMarket failure: public goods, information and immobility

Question paper p.8 Mark scheme p.7 Examiner report p.3 Open in the tool

Q9Explain4 marks

Explain one microeconomic reason why people might have unnecessary operations in the USA.

Mark splitKnowledge 1Application 1Analysis 2

TopicMarket failure: externalities

Question paper p.9 Mark scheme p.8 Examiner report p.3 Open in the tool

Q10Calculate4 marks

Ceteris paribus, calculate the income elasticity of demand for cinema tickets. Show your working.

Mark splitKnowledge 1Application 3

TopicElasticities of demand and supply

Question paper p.10 Mark scheme p.9 Examiner report p.3 Open in the tool

Q11Explain4 marks

Ceteris paribus, explain the likely impact of this decrease in visitor numbers on the producer surplus for Legoland. Illustrate your answer with an appropriate diagram.

Mark splitKnowledge 1Application 1Analysis 2

TopicThe nature of economics

Question paper p.11 Mark scheme p.10 Examiner report p.3 Open in the tool Draw it: supply and demand diagram

Section C

Case study

Renewables, lithium and smartphones

Extracts: Extract A: Apple's renewable commitment · Figure 1: World price of lithium, yuan per tonne, October 2021 to October 2022 · Extract B: Demand for lithium · Extract C: Smartphone manufacturing · Extract A: adapted from: · Figure 1: adapted from:

In the extracts: Jun Jul Aug Sep, Oct Nov Dec Jan, Feb Mar Apr, Minas Gerais, Apple's, Smartphone, Renewables, Brazil, CO2, China

Q12(a)Define2 marks

Define the term 'supply' (Extract A, line 8).

Mark splitKnowledge 2

TopicThe nature of economics

Question paper p.12 Mark scheme p.11 Examiner report p.3 Open in the tool

Q12(b)Explain4 marks

With reference to Extract A, explain one advantage of Apple using energy produced from renewable resources.

Mark splitKnowledge 2Application 2

TopicThe nature of economics

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

Q12(c)Analyse6 marks

With reference to Figure 1 and Extract B, analyse two reasons why the 'world price of lithium increased by 191%' (Extract B, line 2). Illustrate your answer with a supply and demand diagram.

Mark splitKnowledge 2Application 2Analysis 2

TopicDemand, supply and market equilibrium

Question paper p.12 Mark scheme p.13 Examiner report p.3 Open in the tool Draw it: supply and demand diagram

Q12(d)Examine8 marks

With reference to the last paragraph of Extract C, examine two likely effects on smartphone manufacturers of the growth in the market for refurbished smartphones.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicThe nature of economics

Question paper p.12 Mark scheme p.14 Examiner report p.3 Open in the tool

Q12(e)Discuss14 marks

With reference to Extract C, discuss the microeconomic effects of the increase in smartphone manufacturing between 2011 and 2021. Refer to external costs in your answer. Illustrate your answer with an externalities diagram.

Mark splitEvaluation 6

TopicMarket failure: externalities

Question paper p.12 Mark scheme p.15 Examiner report p.3 Open in the tool Draw it: negative externality diagram

Section D

Q13OptionalEvaluate20 marks

Evaluate possible methods of intervention that the Turkish Government could introduce to reduce traffic congestion. Include at least one diagram in your answer.

Mark splitEvaluation 8

TopicGovernment intervention and government failure

Question paper p.22 Mark scheme p.18 Examiner report p.3 Open in the tool Draw it: negative externality diagram Or: indirect tax diagram

Q14OptionalEvaluate20 marks

Evaluate possible methods of intervention that a government might use to limit the impact of increasing commodity prices. Include at least one diagram in your answer.

Mark splitEvaluation 8

TopicGovernment intervention and government failure

Question paper p.22 Mark scheme p.22 Examiner report p.3 Open in the tool Draw it: maximum price diagram Or: subsidy 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

Section C

Renewables, lithium and smartphones

Section D

Other years of Edexcel International AS Unit 1

Topics on this paper