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

Eduqas A-level Component 3, June 2019

All 12 written questions from Eduqas A-level Component 3 (June 2019), Component 3: Evaluating Economic Models and Policies. Case studies: Many uk markets now more contestable, $92bn per year needed to improve sub-saharan africa's road…, New regulatory framework for financial sector, 10 years on from the crisis; greek unemployment still over…, Positive signs of increased economic development in south… and Nigerian central bank sells $4bn on foreign exchange…. 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

MANY UK MARKETS NOW MORE CONTESTABLE

Q1(a)Optional10 marks

Distinguish, using examples, between structural and behavioural barriers to entry.

Mark splitKnowledge 6Analysis 4

TopicMarket structures

Question paper p.2 Mark scheme p.3 Examiner report p.11 Open in the tool

Q1(b)OptionalEvaluate20 marks

Evaluate the extent to which competition and contestability are desirable in product markets.

Mark splitKnowledge 6Analysis 6Evaluation 8

Question paper p.2 Mark scheme p.4 Examiner report p.12 Open in the tool

Case study

$92BN PER YEAR NEEDED TO IMPROVE SUB-SAHARAN AFRICA'S ROAD AND

Q2(a)OptionalExplain10 marks

Explain why public goods are an example of market failure.

Mark splitKnowledge 6Analysis 4

TopicMarket failure

Question paper p.2 Mark scheme p.6 Examiner report p.12 Open in the tool

Q2(b)OptionalDiscuss20 marks

Discuss whether government attempts to correct market failure do more harm than good.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicMarket failure

Question paper p.2 Mark scheme p.8 Examiner report p.12 Open in the tool

Section B

Case study

NEW REGULATORY FRAMEWORK FOR FINANCIAL SECTOR

Q3(a)OptionalExplain10 marks

Explain why economies such as the UK need a legal framework of regulation for the financial sector.

Mark splitKnowledge 6Analysis 4

TopicThe financial sectorGovernment intervention in markets

Question paper p.3 Mark scheme p.10 Examiner report p.12 Open in the tool

Q3(b)OptionalEvaluate20 marks

Evaluate the extent to which the UK's financial sector is beneficial to the UK economy.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicThe financial sector

Question paper p.3 Mark scheme p.12 Examiner report p.13 Open in the tool

Case study

10 YEARS ON FROM THE CRISIS; GREEK UNEMPLOYMENT STILL OVER 20%

Q4(a)OptionalExplain10 marks

Explain the process by which neo-classical economists argue that the economy can adjust to long-run equilibrium following a negative demand side shock. Use a diagram to support your answer.

Mark splitKnowledge 6Analysis 4

TopicAggregate supplyDemand, supply and elasticity

Question paper p.3 Mark scheme p.14 Examiner report p.13 Open in the tool Draw it: AD/AS diagram

Q4(b)OptionalDiscuss20 marks

Discuss the extent to which economies are likely to recover quickly from negative demand side shocks in reality.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.16 Examiner report p.13 Open in the tool

Section C

Case study

POSITIVE SIGNS OF INCREASED ECONOMIC DEVELOPMENT IN SOUTH ASIA

Q5(a)OptionalExplain10 marks

Explain some of the possible measures/indicators of economic development in an LEDC.

Mark splitKnowledge 6Analysis 4

TopicGrowth and development

Question paper p.4 Mark scheme p.18 Examiner report p.13 Open in the tool

Q5(b)OptionalEvaluate20 marks

Evaluate the possible approaches to raising the level of economic development in LEDCs.

Mark splitKnowledge 6Analysis 6Evaluation 8

Question paper p.4 Mark scheme p.19 Examiner report p.13 Open in the tool

Case study

NIGERIAN CENTRAL BANK SELLS $4BN ON FOREIGN EXCHANGE MARKETS TO

Q6(a)Optional10 marks

Using a diagram(s), explain how the exchange rate will be determined in a free-floating exchange rate system.

Mark splitKnowledge 6Analysis 4

TopicInternational trade and exchange rates

Question paper p.4 Mark scheme p.21 Examiner report p.14 Open in the tool

Q6(b)OptionalDiscuss20 marks

Discuss the extent to which it is desirable for a central bank to use foreign currency reserves to support its exchange rate.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicInternational trade and exchange ratesThe financial sector

Question paper p.4 Mark scheme p.23 Examiner report p.14 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

MANY UK MARKETS NOW MORE CONTESTABLE

$92BN PER YEAR NEEDED TO IMPROVE SUB-SAHARAN AFRICA'S ROAD AND

Section B

NEW REGULATORY FRAMEWORK FOR FINANCIAL SECTOR

10 YEARS ON FROM THE CRISIS; GREEK UNEMPLOYMENT STILL OVER 20%

Section C

POSITIVE SIGNS OF INCREASED ECONOMIC DEVELOPMENT IN SOUTH ASIA

NIGERIAN CENTRAL BANK SELLS $4BN ON FOREIGN EXCHANGE MARKETS TO

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