Component 3: Evaluating Economic Models and Policies · A520U30-1

Eduqas A-level Component 3, June 2018

All 12 written questions from Eduqas A-level Component 3 (June 2018), Component 3: Evaluating Economic Models and Policies. Case studies: Changes in price and demand affect markets in different ways, Shortages of chefs causing crisis for uk curry restaurants, Deflationary pressures remain in the eu and japan, Unemployment in eurozone remains high, Falling pound worsens terms of trade and fails to reduce… and South america: market-based reforms have produced mixed…. 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

Case study

CHANGES IN PRICE AND DEMAND AFFECT MARKETS IN DIFFERENT WAYS

Q1(a)OptionalExplain10 marks

Explain why demand curves slope downwards from left to right and supply curves slope upwards from left to right.

Mark splitKnowledge 6Analysis 4

TopicDemand, supply and elasticity

Question paper p.2 Mark scheme p.3 Examiner report p.9 Open in the tool

Q1(b)Optional20 marks

"A rise in price always leads to a fall in quantity demanded but a rise in demand always leads to a rise in price and a rise in quantity." With the aid of diagrams evaluate this statement.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicGrowth and developmentDemand, supply and elasticity

Question paper p.2 Mark scheme p.4 Examiner report p.10 Open in the tool Draw it: supply and demand diagram Or: PED and PES diagram

Case study

SHORTAGES OF CHEFS CAUSING CRISIS FOR UK CURRY RESTAURANTS

Q2(a)OptionalExplain10 marks

Explain, using diagrams, the reasons that profit maximising firms in monopolistic competition might decide to increase their prices.

Mark splitKnowledge 6Analysis 4

TopicCosts, revenues and profitMarket structures

Question paper p.2 Mark scheme p.7 Examiner report p.10 Open in the tool Draw it: monopolistic competition diagram

Q2(b)Optional20 marks

To what extent is monopolistic competition a more desirable market structure than perfect competition?

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicMarket structures

Question paper p.2 Mark scheme p.9 Examiner report p.10 Open in the tool Practise the monopolistic competition diagram Practise the perfect competition diagram

Section B

Case study

DEFLATIONARY PRESSURES REMAIN IN THE EU AND JAPAN

Q3(a)Optional10 marks

Outline two measures of inflation in the UK and explain how they are calculated.

Mark splitKnowledge 6Analysis 4

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.11 Examiner report p.10 Open in the tool

Q3(b)Optional20 marks

"Deflation is more of a concern than inflation." Discuss.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.14 Examiner report p.10 Open in the tool Practise the AD/AS diagram

Case study

UNEMPLOYMENT IN EUROZONE REMAINS HIGH

Q4(a)OptionalExplain10 marks

Explain why unemployment creates social and economic costs.

Mark splitKnowledge 6Analysis 4

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.16 Examiner report p.11 Open in the tool

Q4(b)Optional20 marks

"It is possible to reduce the natural rate of unemployment/NAIRU but not possible to reduce unemployment below the natural rate/NAIRU." Evaluate this statement.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.18 Examiner report p.11 Open in the tool Practise the Phillips curve diagram

Section C

Case study

FALLING POUND WORSENS TERMS OF TRADE AND FAILS TO REDUCE THE TRADE

Q5(a)OptionalExplain10 marks

Explain the factors that might cause a country's exchange rate to depreciate.

Mark splitKnowledge 6Analysis 4

TopicInternational trade and exchange rates

Question paper p.4 Mark scheme p.20 Examiner report p.11 Open in the tool

Q5(b)Optional20 marks

To what extent would an improvement in the terms of trade improve the balance of trade?

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicInternational trade and exchange rates

Question paper p.4 Mark scheme p.22 Examiner report p.11 Open in the tool

Case study

SOUTH AMERICA: MARKET-BASED REFORMS HAVE PRODUCED MIXED RESULTS

Q6(a)OptionalExplain10 marks

Explain the main ways in which countries can protect their domestic industries from foreign competition.

Mark splitKnowledge 6Analysis 4

Question paper p.4 Mark scheme p.24 Examiner report p.11 Open in the tool

Q6(b)Optional20 marks

How effective are moves towards more free-market based systems involving internal and external liberalisation likely to be in raising living standards in LEDCs?

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicMeasuring economic performance

Question paper p.4 Mark scheme p.26 Examiner report p.12 Open in the tool

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.

Section A

CHANGES IN PRICE AND DEMAND AFFECT MARKETS IN DIFFERENT WAYS

SHORTAGES OF CHEFS CAUSING CRISIS FOR UK CURRY RESTAURANTS

Section B

DEFLATIONARY PRESSURES REMAIN IN THE EU AND JAPAN

UNEMPLOYMENT IN EUROZONE REMAINS HIGH

Section C

FALLING POUND WORSENS TERMS OF TRADE AND FAILS TO REDUCE THE TRADE

SOUTH AMERICA: MARKET-BASED REFORMS HAVE PRODUCED MIXED RESULTS

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