Case study
Competition regulator backs scrapping of rail franchises.
In the extracts: CMA, Network Rail, Britain, Competition and Markets Authority, London Paddington and Cardiff, Alex Chisholm, Richard Lloyd, Paul Plummer, British Rail
Q1(a)4 marks
What benefits do train operators such as Virgin and First Great Western get from winning a franchise for a certain route on the rail network?
Mark splitKnowledge 2Application 2
TopicCompetition policy and regulation
Q1(b)4 marks
Using Figure 3, outline what has happened to rail fares in both real and nominal terms over the period shown.
TopicCompetition policy and regulation
Q1(c)4 marks
Using a costs and revenue diagram show how the trend shown in Figure 2 since privatisation would have increased the profits of train operators such as Virgin Trains.
Mark splitKnowledge 2Application 2
TopicCompetition policy and regulation
Q1(d)8 marks
"The most efficient price for a train operator to set would be price = marginal cost." How far do you agree with this view?
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicCosts, revenues and profit
Q1(e)10 marks
With the aid of the data and using economic analysis evaluate the view that the railways should be renationalised.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 4
TopicGrowth and developmentCompetition policy and regulation
Q1(f)10 marks
Using an appropriate diagram and with reference to the data, evaluate the view that the government should tax the use of private cars more heavily to provide more subsidies for the rail network.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 4
TopicGovernment intervention in markets
Case study
IMF Survey: Weakening Growth in Sub-Saharan Africa Calls for Policy Change
In the extracts: Malawi, IMF, GDP, MWK, South Africa and Zambia, Malawi Economic Outlook
Q2(a)6 marks
With reference to Figures 1 and 2, consider how significant the impact of commodity prices has been on sub-Saharan African economic growth in 2015-16.
Mark splitApplication 2Analysis 2Evaluation 2
TopicEconomic growth and the economic cycle
Q2(b)Explain6 marks
With reference to economic theory and using a diagram, explain why primary product prices tend to be very volatile.
Mark splitKnowledge 2Analysis 4
TopicEconomic growth and the economic cycle
Q2(c)Discuss10 marks
Discuss the extent to which the relationship between Malawian interest rates and the Malawian exchange rate shown in Figures 3 and 4 can be explained by economic theory.
Mark splitApplication 3Analysis 3Evaluation 4
TopicInternational trade and exchange ratesMacroeconomic objectives and policy
Q2(d)10 marks
To what extent might the policies recommended by the IMF in lines 31-41 be beneficial for Malawi's economic development?
Mark splitApplication 3Analysis 3Evaluation 4
TopicEconomic growth and the economic cycle
Q2(e)8 marks
In line 28, the IMF speaks of 'favourable population trends'. To what extent is the Malawian economy likely to benefit from its rapid population growth?
Mark splitApplication 3Analysis 3Evaluation 2
TopicEconomic growth and the economic cycle
