Component 3: Evaluating Economic Models and Policies · A520U30-1
Eduqas A-level Component 3, June 2025
All 12 written questions from Eduqas A-level Component 3 (June 2025), Component 3: Evaluating Economic Models and Policies. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Section A
Q1.1
Using diagrams, explain how both an increase in the scale of a firm and an increase in the scale of an industry could lead to a rise in a firm's average costs.
Mark splitKnowledge 6Analysis 4
Q1.2
Discuss whether all firms should aim to maximise their profits.
Mark splitKnowledge 6Analysis 6Evaluation 8
Q2.1
Explain the main factors that determine the level of contestability in a market.
Mark splitKnowledge 6Analysis 4
Q2.2
To what extent is it desirable that all markets should become more contestable?
Mark splitKnowledge 6Analysis 6Evaluation 8
Section B
Q3.1
Explain the factors that might cause consumption in an economy to rise.
Mark splitKnowledge 6Analysis 4
TopicAggregate demand
Q3.2
Discuss whether an increase in consumption is likely to be good for the UK economy.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicAggregate demand
Q4.1
Explain how a price index to measure the rate of inflation is constructed.
Mark splitKnowledge 6Analysis 4
Q4.2
Discuss whether a reversal of quantitative easing could be effective in bringing inflation down to its target level.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicMacroeconomic objectives and policyMeasuring economic performance
Section C
Q5.1
Explain why high levels of public sector debt can be an obstacle to economic development in low-income countries (LEDCs).
Mark splitKnowledge 6Analysis 4
TopicPublic finances and the role of the stateBusiness growth and objectives
Q5.2
Discuss whether an increase in FDI into low-income countries (LEDCs) is likely to lead to an increase in economic development.
Mark splitKnowledge 6Analysis 6Evaluation 8
Q6.1
Explain what is meant by a country's terms of trade and explain two factors that could cause it to worsen.
Mark splitKnowledge 6Analysis 4
Q6.2
Evaluate the view that a worsening in a country's terms of trade is good for its economy.
Mark splitKnowledge 6Analysis 6Evaluation 8
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.