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

Eduqas A-level Component 3, June 2023

All 12 written questions from Eduqas A-level Component 3 (June 2023), Component 3: Evaluating Economic Models and Policies. Case studies: Government considers higher tax on cut-price alcohol, CMA blocks Sainsbury/Asda merger but Google bid for Fitbit…, Unemployment rises sharply across the world, Economic shocks threaten to scar the UK economy, Sharp fall in the pound after political turmoil and Norway and Iceland both part of the European Union's (EU's)…. 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

Government considers higher tax on cut-price alcohol

Q1(a)Optional10 marks

Using diagrams, explain how different values of price elasticity of demand (PED) might affect the incidence of an indirect tax on different products.

Mark splitKnowledge 6Analysis 4

TopicDemand, supply and elasticityGovernment intervention in markets

Question paper p.2 Mark scheme p.4 Examiner report p.13 Open in the tool Draw it: indirect tax diagram Or: PED and PES diagram

Q1(b)OptionalDiscuss20 marks

Discuss, using economic theory, whether a cut in price by a firm is likely to increase its profitability.

Mark splitKnowledge 6Analysis 6Evaluation 8

Question paper p.2 Mark scheme p.6 Examiner report p.13 Open in the tool

Case study

CMA blocks Sainsbury/Asda merger but Google bid for Fitbit permitted

In the extracts: Sainsbury, Google, Fitbit, Asda, CMA

Q2(a)OptionalExplain10 marks

Explain, using examples, what is meant by horizontal, vertical and conglomerate mergers.

Mark splitKnowledge 6Analysis 4

TopicBusiness growth and objectives

Question paper p.2 Mark scheme p.9 Examiner report p.13 Open in the tool

Q2(b)OptionalEvaluate20 marks

Evaluate the costs and benefits of mergers to both firms and their customers.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicBusiness growth and objectives

Question paper p.2 Mark scheme p.12 Examiner report p.13 Open in the tool

Section B

Case study

Unemployment rises sharply across the world

Q3(a)OptionalExplain10 marks

Explain why some economies might have higher rates of unemployment than others.

Mark splitKnowledge 6Analysis 4

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.15 Examiner report p.13 Open in the tool

Q3(b)OptionalDiscuss20 marks

Discuss whether achieving low unemployment or low inflation should be the more important policy objective for a government.

TopicMeasuring economic performance

Question paper p.3 Mark scheme p.30 Examiner report p.13 Open in the tool Practise the Phillips curve diagram Practise the AD/AS diagram

Case study

Economic shocks threaten to scar the UK economy

Q4(a)OptionalExplain10 marks

Explain the factors that could cause (i) the short run and (ii) the long run aggregate supply curves to shift position.

Mark splitKnowledge 6Analysis 4

TopicAggregate supplyDemand, supply and elasticity

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

Q4(b)OptionalAssess20 marks

Assess the effectiveness of monetary policies for an economy in recession.

TopicEconomic growth and the economic cycle

Question paper p.3 Mark scheme p.30 Examiner report p.14 Open in the tool Practise the AD/AS diagram

Section C

Case study

Sharp fall in the pound after political turmoil

Q5(a)OptionalExplain10 marks

Explain, using diagrams, why exchange rates can be volatile.

Mark splitKnowledge 6Analysis 4

TopicInternational trade and exchange rates

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

Q5(b)OptionalDiscuss20 marks

Discuss whether a policy of keeping a country's exchange rate below its equilibrium level is likely to be economically beneficial for that country.

TopicInternational trade and exchange ratesDemand, supply and elasticity

Question paper p.4 Mark scheme p.30 Examiner report p.14 Open in the tool

Case study

Norway and Iceland both part of the European Union's (EU's) single market

In the extracts: Norway and Iceland, European Union

Q6(a)OptionalExplain10 marks

Explain why a non-EU member such as Norway might become part of the single market.

Mark splitKnowledge 6Analysis 4

TopicInternational trade and exchange rates

Question paper p.4 Mark scheme p.30 Examiner report p.15 Open in the tool

Q6(b)OptionalEvaluate20 marks

Evaluate the effects of membership of the European Monetary Union (EMU) (the eurozone) on an EU member state.

TopicInternational trade and exchange rates

Question paper p.4 Mark scheme p.30 Examiner report p.15 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

Government considers higher tax on cut-price alcohol

CMA blocks Sainsbury/Asda merger but Google bid for Fitbit permitted

Section B

Unemployment rises sharply across the world

Economic shocks threaten to scar the UK economy

Section C

Sharp fall in the pound after political turmoil

Norway and Iceland both part of the European Union's (EU's) single market

Other years of Eduqas A-level Component 3

Topics on this paper