Section A
Q11 mark
1 Which one of the following combinations best summarises how resources are allocated in a mixed economy? Price mechanism Government intervention
- AYes No
- BYes Yes
- CNo Yes
- DNo No
Show the answer
The answer is B.
TopicThe nature of economics
Q21 mark
2 Which one of the following is an example of government failure?
- AThe non-provision of public goods by private sector firms
- BExternal costs of production in the manufacture of Tesla cars
- CAsymmetric information between a private dental practice and its patients
- DExcessive administrative costs in the provision of state-owned services
Show the answer
The answer is D.
TopicMarket failure: public goods, information and immobility
Q31 mark
Which one of the following is most likely to have a forward market?
- AFurniture
- BCurrencies
- CSmartphones
- DClothing
Show the answer
The answer is B.
TopicMoney and financial markets
Q41 mark
Which one of the following shows the area of welfare loss?
- AUVW
- BUWX
- CZP1W
- DZP2U
Show the answer
The answer is A.
TopicMarket failure: externalities
Q51 mark
At which one of the following would total utility be maximised?
- A2nd plate
- B3rd plate
- C4th plate
- D5th plate
Show the answer
The answer is C.
TopicBehavioural economics and consumer choice
Q61 mark
Which one of the following can be deduced from this information?
- AAll three goods are complements of soft drinks
- BAll three goods are substitutes for soft drinks
- CAll three goods are normal goods
- DAll three goods are luxury goods
Show the answer
The answer is B.
TopicDemand, supply and market equilibrium
Section B
Q7Draw4 marks
Draw a diagram to illustrate the impact of Artificial Intelligence on China's production possibility frontier (PPF). Include an arrow on your PPF diagram.
Mark splitKnowledge 1Application 3
TopicThe nature of economics
Q8Explain4 marks
With reference to the table, explain one factor that is likely to influence the price elasticity of demand for energy.
Mark splitKnowledge 1Application 1Analysis 2
TopicElasticities of demand and supply
Q9Explain4 marks
With reference to both statements, explain the difference between normative statements and positive statements.
Mark splitKnowledge 2Application 2
TopicThe nature of economics
Q10Calculate4 marks
Ceteris paribus, calculate the difference between the percentage change in quantity demanded for flights within developed countries and the percentage change in quantity demanded for flights within developing countries. Show your workings. You may use the last column for your calculations.
Mark splitKnowledge 1Application 3
TopicElasticities of demand and supply
Q11Explain4 marks
Ceteris paribus, explain the likely impact on excess supply of this increase in the minimum price. Illustrate your answer with a supply and demand diagram.
Mark splitKnowledge 1Application 1Analysis 2
TopicDemand, supply and market equilibrium
Section C
Case study
Sources of energy generation
Extracts: Figure 1: : World price of uranium, dollars per pound (lb), January 2020 to September 2023 · Extract A: Price of uranium · Extract B: Nuclear reactors · Extract C: Coal tax in Indonesia · Figure 1: adapted from: · Extract A: adapted from:
In the extracts: South Korea, Indonesia, Argentina, Canada, China, Coal, Economist, France, Kazakhstan, Nuclear
Q12(a)Define2 marks
Define the term 'speculation'. (Extract A, line 7)
Mark splitKnowledge 2
TopicDemand, supply and market equilibrium
Q12(b)Analyse6 marks
With reference to Figure 1 and Extract A, analyse one demand factor and one supply factor that caused the price of uranium to more than double between January 2020 and September 2023. Illustrate your answer with a supply and demand diagram.
Mark splitKnowledge 2Application 2Analysis 2
TopicDemand, supply and market equilibrium
Q12(c)Explain4 marks
With reference to Extract B, explain whether the supply of nuclear reactors is price elastic or price inelastic.
Mark splitKnowledge 2Application 2
TopicElasticities of demand and supply
Q12(d)Examine8 marks
With reference to Extract C, examine two microeconomic effects of the introduction of an indirect tax on the production of coal.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicGovernment intervention and government failure
Q12(e)Discuss14 marks
With reference to Extract B, discuss the likely effects of subsidies paid to the nuclear power industry on consumers and governments. Illustrate your answer with an appropriate diagram.
Mark splitEvaluation 6
TopicGovernment intervention and government failure
Section D
Q13OptionalEvaluate20 marks
Evaluate possible reasons why consumers did not switch suppliers for these services.
Mark splitEvaluation 8
TopicBehavioural economics and consumer choice
Q14OptionalEvaluate20 marks
Evaluate the advantages of the division of labour for businesses and workers. Refer to an industry of your choice in your answer.
Mark splitEvaluation 8
TopicThe nature of economics
