Component 2: Exploring Economic Behaviour · A520U20-1

Eduqas A-level Component 2, October 2021

All 10 written questions from Eduqas A-level Component 2 (October 2021), Component 2: Exploring Economic Behaviour. Case studies: Prime suspect and Last laugh for Laffer. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme

Autumn series, sat in October because the summer exams were cancelled.

Case study

Prime suspect

In the extracts: Amazon, Deliveroo, CMA, Competition and Markets Authority, National Minimum Wage, Google and Microsoft, Netflix and Spotify, Premier League, Harry Potter, JK Rowling

Q1(a)6 marks

Using a cost and revenue diagram, explain how Amazon has been able to continually drive down prices.

Mark splitKnowledge 2Application 2Analysis 2

TopicMarket structures

Question paper p.5 Mark scheme p.4 Open in the tool Draw it: cost curves diagram Or: monopoly diagram

Q1(b)6 marks

Using a diagram, explain why Amazon might pay workers more than the minimum wage.

Mark splitKnowledge 2Application 2Analysis 2

TopicThe labour market

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

Q1(c)8 marks

Using cost and revenue diagrams, consider whether Amazon is efficient.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicMarket structures

Question paper p.5 Mark scheme p.8 Open in the tool Draw it: monopoly diagram Or: cost curves diagram

Q1(d)Discuss10 marks

Discuss whether at its current stage of development, Amazon's main objective should be profit or growth.

Mark splitApplication 3Analysis 3Evaluation 4

TopicMarket structures

Question paper p.5 Mark scheme p.12 Open in the tool

Q1(e)Discuss10 marks

Discuss whether Amazon should be more heavily regulated.

Mark splitApplication 3Analysis 3Evaluation 4

TopicMarket structures

Question paper p.5 Mark scheme p.15 Open in the tool

Case study

Last laugh for Laffer

In the extracts: Laffer, GDP, Boris Johnson, Chancellor, Tax-free Personal Allowance, US Presidential Medal, President Trump, Prime Minister, George Osborne

Q2(a)Explain4 marks

Explain the shape of the Laffer curve.

Mark splitKnowledge 2Analysis 2

TopicPublic finances and the role of the state

Question paper p.8 Mark scheme p.18 Open in the tool

Q2(b)8 marks

With reference to Figure 1 and the data, discuss whether cuts in the top rate of income tax will be beneficial to an economy.

Mark splitApplication 2Analysis 3Evaluation 3

TopicGovernment intervention in markets

Question paper p.8 Mark scheme p.19 Open in the tool

Q2(c)14 marks

(i) A worker on the National Minimum Wage in the UK would earn around £15 000 per year. Calculate how much income tax this person would pay in the 2019-20 tax year. (ii) UK MPs earn around £80 000 per year. Calculate how much income tax an MP would pay in the 2019-20 tax year. (iii) Using the data, discuss the relative merits and demerits of direct taxes and indirect taxes.

TopicGovernment intervention in marketsThe labour market

Question paper p.8 Mark scheme p.21 Open in the tool

Q2(d)4 marks

Outline the difference between a structural and a cyclical budget/fiscal deficit (line 22).

Mark splitKnowledge 4

TopicPublic finances and the role of the stateMacroeconomic objectives and policy

Question paper p.8 Mark scheme p.24 Open in the tool

Q2(e)10 marks

With the use of AD/AS diagrams and the data, discuss the extent to which government capital spending is preferable to government current spending.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 4

TopicPublic finances and the role of the stateMacroeconomic objectives and policyGovernment intervention in markets

Question paper p.8 Mark scheme p.25 Open in the tool Draw it: AD/AS diagram

Question text is quoted from the question papers, © WJEC CBAC Ltd (Eduqas), 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.

Prime suspect

Last laugh for Laffer

Other years of Eduqas A-level Component 2

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