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

Eduqas A-level Component 3, October 2020

All 12 written questions from Eduqas A-level Component 3 (October 2020), Component 3: Evaluating Economic Models and Policies. Case studies: Majority of americans think that government intervenes too…, Debenhams warns on profits, after price cut fails to…, Central banks looking to reverse qe, Trade tensions see imf cut uk growth forecast, China in africa – infrastructure investment helping to… and Bulgaria forecast to be next eurozone member. 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

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

Section A

Case study

MAJORITY OF AMERICANS THINK THAT GOVERNMENT INTERVENES TOO MUCH

Q1(a)Optional10 marks

Using diagrams, explain the ways in which allocative and productive efficiency are efficient.

Mark splitKnowledge 6Analysis 4

TopicMarket structures

Question paper p.2 Mark scheme p.4 Examiner report p.8 Open in the tool Draw it: perfect competition diagram Or: monopoly diagram

Q1(b)Optional20 marks

The efficiency of resource allocation in an economy would be improved by a reduction in the amount of government intervention. Discuss.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicGovernment intervention in markets

Question paper p.2 Mark scheme p.7 Examiner report p.8 Open in the tool

Case study

DEBENHAMS WARNS ON PROFITS, AFTER PRICE CUT FAILS TO ATTRACT MORE

Q2(a)OptionalExplain10 marks

Explain, with the aid of a diagram, why price elasticity of demand changes along a downward sloping straight-line demand curve.

Mark splitKnowledge 6Analysis 4

TopicDemand, supply and elasticityGrowth and development

Question paper p.2 Mark scheme p.9 Examiner report p.8 Open in the tool Draw it: PED and revenue diagram Or: PED and PES diagram

Q2(b)OptionalEvaluate20 marks

Evaluate the extent to which knowledge of price elasticity of demand is important for decision making by firms and governments. Use diagrams to illustrate your answer.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicDemand, supply and elasticity

Question paper p.2 Mark scheme p.11 Examiner report p.8 Open in the tool Draw it: PED and PES diagram Or: PED and revenue diagram

Section B

Case study

CENTRAL BANKS LOOKING TO REVERSE QE

Q3(a)Optional10 marks

Using the quantity theory of money, explain why an increase in the money supply might cause a rise in inflation.

Mark splitKnowledge 6Analysis 4

TopicMeasuring economic performanceMacroeconomic objectives and policy

Question paper p.3 Mark scheme p.14 Examiner report p.8 Open in the tool

Q3(b)OptionalDiscuss20 marks

Discuss whether a reversal of QE is likely to be economically beneficial.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicThe financial sector

Question paper p.3 Mark scheme p.16 Examiner report p.8 Open in the tool

Case study

TRADE TENSIONS SEE IMF CUT UK GROWTH FORECAST

Q4(a)Optional10 marks

With the aid of diagrams, explain the difference between actual growth and potential growth.

Mark splitKnowledge 6Analysis 4

TopicEconomic growth and the economic cycleGrowth and development

Question paper p.3 Mark scheme p.18 Examiner report p.8 Open in the tool Draw it: PPF diagram Or: AD/AS diagram

Q4(b)Optional20 marks

To what extent is economic growth beneficial to an economy?

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicEconomic growth and the economic cycle

Question paper p.3 Mark scheme p.20 Examiner report p.8 Open in the tool

Section C

Case study

CHINA IN AFRICA – INFRASTRUCTURE INVESTMENT HELPING TO OVERCOME THE

Q5(a)OptionalExplain10 marks

Explain why dependency on a narrow range of primary products may damage an economy's economic development.

Mark splitKnowledge 6Analysis 4

TopicAggregate demand

Question paper p.4 Mark scheme p.22 Examiner report p.9 Open in the tool

Q5(b)OptionalDiscuss20 marks

Discuss whether an increase in inward foreign direct investment is a good way to improve economic development for countries that are primary product dependent.

Mark splitKnowledge 6Analysis 6Evaluation 8

TopicInternational trade and exchange ratesAggregate demand

Question paper p.4 Mark scheme p.23 Examiner report p.9 Open in the tool

Case study

BULGARIA FORECAST TO BE NEXT EUROZONE MEMBER

Q6(a)OptionalExplain10 marks

Explain, using a diagram, how an EU member could stabilise its currency against the euro prior to joining the eurozone.

Mark splitKnowledge 6Analysis 4

Question paper p.4 Mark scheme p.25 Examiner report p.9 Open in the tool

Q6(b)OptionalDiscuss20 marks

Discuss the possible benefits and drawbacks to EU member countries of adopting the euro.

Mark splitKnowledge 6Analysis 6Evaluation 8

Question paper p.4 Mark scheme p.27 Examiner report p.9 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

MAJORITY OF AMERICANS THINK THAT GOVERNMENT INTERVENES TOO MUCH

DEBENHAMS WARNS ON PROFITS, AFTER PRICE CUT FAILS TO ATTRACT MORE

Section B

CENTRAL BANKS LOOKING TO REVERSE QE

TRADE TENSIONS SEE IMF CUT UK GROWTH FORECAST

Section C

CHINA IN AFRICA – INFRASTRUCTURE INVESTMENT HELPING TO OVERCOME THE

BULGARIA FORECAST TO BE NEXT EUROZONE MEMBER

Other years of Eduqas A-level Component 3

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