Unit 1: Markets in action · WEC11/01

Edexcel International AS Unit 1, June 2025

All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 1 (June 2025), Markets in action. Case studies: Container shipping. 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 is an example of a market failure?

AUnintended consequences
BA market bubble in the housing market
CExcessive administration costs resulting from regulation
DA firm exiting the market because it was making a loss

Show the answer

The answer is B.

TopicDemand, supply and market equilibrium

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

Q21 mark

Ceteris paribus, which one of the following is the most likely result of increasing the maximum price of flights within Thailand?

AAn increase in excess supply
BA decrease in excess supply
CAn increase in excess demand
DA decrease in excess demand

Show the answer

The answer is D.

TopicDemand, supply and market equilibrium

Question paper p.2 Mark scheme p.4 Examiner report p.48 Open in the tool

Q31 mark

Which one of the following explains why consumers bought fewer Procter & Gamble products?

AConsumers aimed to maximise utility
BConsumers aimed to minimise utility
CConsumers suffered from habitual behaviour
DConsumers had poor computational skills

Show the answer

The answer is A.

TopicBehavioural economics and consumer choice

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

Q41 mark

$4, which one of the following can be deduced from the diagram?

ATotal revenue would decrease by $90 000
BTotal revenue would decrease by $45 000
CTotal revenue would increase by $45 000
DTotal revenue would increase by $90 000

Show the answer

The answer is C.

Question paper p.4 Mark scheme p.5 Open in the tool Practise the PED and revenue diagram

Q51 mark

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

AVenezuela is a free market economy
BSweden is a command economy
CSweden is a free market economy and Venezuela is a command economy
DSweden and Venezuela are both mixed economies

Show the answer

The answer is D.

TopicThe nature of economics

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

Q61 mark

Ceteris paribus, which one of the following can be deduced from this information?

AThe demand for all four chocolate bars is price inelastic
BAll four chocolate bars are inferior goods
CA 5% increase in the price of a Mars chocolate bar will result in a 6.5% decrease in the quantity demanded
DA5% increase in the price of a Mondelez chocolate bar will result in an 8% increase in the quantity demanded

Show the answer

The answer is C.

TopicElasticities of demand and supply

Question paper p.6 Mark scheme p.5 Examiner report p.48 Open in the tool

Section B

Q7Draw4 marks

Draw a diagram to illustrate the likely external benefits resulting from online education in the Philippines.

Mark splitKnowledge 1Application 3

TopicMarket failure: externalities

Question paper p.7 Mark scheme p.6 Examiner report p.3 Open in the tool Draw it: positive externality diagram

Q8Explain4 marks

Explain one advantage of specialisation in house construction.

Mark splitKnowledge 1Application 1Analysis 2

TopicThe nature of economics

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

Q9Explain4 marks

With reference to the information given, explain the difference between substitutes and complements.

Mark splitKnowledge 2Application 2

TopicDemand, supply and market equilibrium

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

Q10Calculate4 marks

Ceteris paribus, calculate the price elasticity of supply for green coffee beans. Show your workings.

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

Explain the likely impact on the USA's production possibility frontier (PPF) of this change in migration. Illustrate your answer with a fully labelled PPF diagram.

Mark splitKnowledge 1Application 1Analysis 2

TopicThe nature of economics

Question paper p.11 Mark scheme p.9 Examiner report p.3 Open in the tool Draw it: PPF diagram

Section C

Case study

Container shipping

Extracts: Figure 1: Average world price of transporting goods in a shipping container, dollars · Extract A: Shipping container costs rise rapidly · Extract B: The supply of container ships · Extract C: Environmental impact of container ships · Figure 1: adapted from: · Extract A: adapted from:

In the extracts: Red Sea, Suez Canal, BAR Technologies, North America, South African, CO2, Container, Asia, Diverted, Egypt

Q12(a)Define2 marks

Define the term 'public good'. (Extract A, line 13)

Mark splitKnowledge 2

TopicMarket failure: public goods, information and immobility

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

Q12(b)Analyse6 marks

With reference to Figure 1 and Extract A, analyse two factors that caused the average world price of transporting goods in shipping containers to rise rapidly. 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.12 Examiner report p.3 Open in the tool Draw it: supply and demand diagram

Q12(c)Explain4 marks

With reference to Extract B, explain the difference between price inelastic supply and price elastic supply.

Mark splitKnowledge 2Application 2

TopicElasticities of demand and supply

Question paper p.12 Mark scheme p.13 Examiner report p.3 Open in the tool

Q12(d)Examine8 marks

With reference to Extract C, examine two external costs associated with container ships.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicMarket failure: externalities

Question paper p.12 Mark scheme p.14 Examiner report p.3 Open in the tool Practise the negative externality diagram

Q12(e)Discuss14 marks

With reference to Extract C and your own knowledge, discuss the likely benefits of subsidies paid to the manufacturers of wind sails. Illustrate your answer with a supply and demand diagram.

Mark splitEvaluation 6

TopicDemand, supply and market equilibrium

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

Section D

Q13OptionalEvaluate20 marks

Evaluate the microeconomic benefits of this increase in demand for electric vehicles. Illustrate your answer with a supply and demand diagram.

Mark splitEvaluation 8

TopicDemand, supply and market equilibrium

Question paper p.22 Mark scheme p.18 Examiner report p.3 Open in the tool Draw it: supply and demand diagram

Q14OptionalEvaluate20 marks

Evaluate the microeconomic benefits of introducing a tax on plastic packaging. Illustrate your answer with a supply and demand diagram.

Mark splitEvaluation 8

TopicDemand, supply and market equilibrium

Question paper p.22 Mark scheme p.21 Examiner report p.3 Open in the tool Draw it: indirect tax 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

Container shipping

Section D

Other years of Edexcel International AS Unit 1

Topics on this paper