Unit 1: Markets in action · WEC11/01

Edexcel International AS Unit 1, October 2019

All 12 written questions and 6 multiple choice questions from Edexcel International AS Unit 1 (October 2019), Markets in action. Case studies: The market for plastics. 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 Which one of the following roles is the state most likely to undertake in a mixed economy?
  1. AProviding subsidies to encourage the production of goods with external benefits
  2. BProviding subsidies to encourage the production of goods with external costs
  3. CImposing a specific tax on the production of public goods
  4. DImposing an ad valorem tax on the production of public goods
Show the answer

The answer is A.

TopicMarket failure: externalities

Question paper p.2Mark scheme p.3Examiner report p.4Open in the tool
Q41 mark
4 The diagram shows the market for vanilla pods. Price per kg of vanilla T S pods U P1 X Pe W V D D1 0 Qe Q1 Quantity of vanilla pods, kg Madagascar is the world's largest supplier of vanilla pods. Higher demand for natural flavourings in rich countries has led to an increase in the demand for vanilla as shown in the diagram above. This will result in an increase in
  1. Aproducer surplus to P1TX
  2. Bconsumer surplus to PeUW
  3. Cproducer surplus by PeP1XW
  4. Dconsumer surplus by PeP1XW
Show the answer

The answer is C.

TopicThe price mechanism, consumer and producer surplus

Question paper p.3Mark scheme p.3Examiner report p.4Open in the toolPractise the supply and demand diagram

Section B

Section C

Case study

The market for plastics

Extracts: Extract A: Plastic waste prices fall · Extract B: Plastic bags damaging the environment · Extract C: Reducing plastic bag use in the European Union (EU) · Figure 1: Revenues from the tax on plastic bags for Denmark · Figure 2: Plastic bag use per person in selected countries, 2010 · Extract A: adapted from 'Plastic film prices drop 40%', 19 December 2017, Carrie Bone,

In the extracts: Denmark Year Tax, CS Recycling, Craig Curtis, European Union, Managing Director, Plastic, China, Danish, Greece, Multiple

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.