Component 3: Evaluating Economic Models and Policies · A520U30-1
Eduqas A-level Component 3, October 2021
All 12 written questions from Eduqas A-level Component 3 (October 2021), Component 3: Evaluating Economic Models and Policies. Case studies: Asos (the online fashion and cosmetics retailer) profits…, Uk immigration continues to rise, Phillips curve may be broken for good – the economist, Economic uncertainty hits uk investment, Debt in developing countries hits all-time high and Rise in protectionism threatens growth in world trade. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Autumn series, sat in October because the summer exams were cancelled.
Section A
Case study
ASOS (THE ONLINE FASHION AND COSMETICS RETAILER) PROFITS FALL BY TWO
In the extracts: ASOS
Q1(a)Optional10 marks
Using examples, explain how internal and external economies of scale are both able to reduce a firm's unit costs.
Mark splitKnowledge 6Analysis 4
TopicCosts, revenues and profit
Q1(b)Optional20 marks
Using diagrams, discuss whether an increase in scale for firms in oligopolistic markets is more likely to increase or to reduce their profitability levels.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicMarket structures
Case study
UK IMMIGRATION CONTINUES TO RISE
Q2(a)Optional10 marks
Using diagrams explain, in each case, how changes in population and agricultural productivity may affect an economy's production possibility frontier.
Mark splitKnowledge 6Analysis 4
TopicThe economic problem and resource allocation
Q2(b)OptionalEvaluate20 marks
Evaluate the impacts of an increase in immigration on labour markets.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicThe labour market
Section B
Case study
PHILLIPS CURVE MAY BE BROKEN FOR GOOD – THE ECONOMIST
Q3(a)OptionalExplain10 marks
Explain, using a diagram or diagrams, why some economists argue that the long run Phillips curve is vertical but that the short run Phillips curve is not.
Mark splitKnowledge 6Analysis 4
TopicMacroeconomic objectives and policy
Q3(b)OptionalEvaluate20 marks
Evaluate the policies that a government could use to shift the long run Phillips curve to the left.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicMacroeconomic objectives and policyGovernment intervention in markets
Case study
ECONOMIC UNCERTAINTY HITS UK INVESTMENT
Q4(a)OptionalExplain10 marks
Explain the factors which may affect the level of investment in an economy.
Mark splitKnowledge 6Analysis 4
TopicAggregate demand
Q4(b)OptionalEvaluate20 marks
Evaluate the view that high levels of investment by firms and government are always beneficial for the economy.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicAggregate demand
Section C
Case study
DEBT IN DEVELOPING COUNTRIES HITS ALL-TIME HIGH
Q5(a)OptionalExplain10 marks
Explain how high levels of government debt might damage the economic growth of a less economically developed country (LEDC).
Mark splitKnowledge 6Analysis 4
TopicGrowth and developmentEconomic growth and the economic cycle
Q5(b)OptionalDiscuss20 marks
Discuss the extent to which rapid economic growth in a less economically developed country (LEDC) is likely to lead to an increase in its economic development.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicGrowth and developmentEconomic growth and the economic cycle
Case study
RISE IN PROTECTIONISM THREATENS GROWTH IN WORLD TRADE
Q6(a)Optional10 marks
Using diagrams and the concept of comparative advantage, explain how international trade should allow a country to consume outside its production possibility frontier.
Mark splitKnowledge 6Analysis 4
TopicInternational trade and exchange ratesThe economic problem and resource allocation
Q6(b)OptionalDiscuss20 marks
Discuss the costs and benefits of globalisation.
Mark splitKnowledge 6Analysis 6Evaluation 8
TopicInternational trade and exchange rates
