Component 1: Introduction to Economic Principles · B520U10-1
Eduqas AS Component 1, June 2017
All 12 written questions from Eduqas AS Component 1 (June 2017), Component 1: Introduction to Economic Principles. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Q1
Adapt the production possibility diagram below to show the likely short run effects on the economy. Give reasons for your answer.
Q2(a)
Using the above data: (i) Calculate the average price of a packet of cigarettes. (ii) Calculate how much tax is paid on an average packet of cigarettes.
Q2(b)
Using a supply and demand diagram, explain how the taxation of cigarettes is designed to reduce their consumption.
Mark splitKnowledge 2Analysis 2
TopicAggregate demand
Q2(c)
With reference to the data, outline how the high taxation of cigarettes might lead to government failure.
Mark splitKnowledge 1Application 3
Q3(a)
Define what is meant by market failure.
TopicMarket failure
Q3(b)
Describe how market failure might occur in labour markets as a result of: (i) external benefits. (ii) information asymmetry.
TopicMarket failureThe labour market
Q4(a)
Calculate the amount spent on almonds each year by the average American following the price rise.
Q4(b)
Calculate the likely impact of the price rise on Californian almond production.
Q5
Discuss the extent to which infrastructure investment projects such as those identified above will help the UK to "increase the amount of private sector investment undertaken by business".
Mark splitApplication 4Analysis 2Evaluation 4
TopicAggregate demand
Q6
Using an AD/AS diagram explain why, in theory, an increase in interest rates to 0.75% 'would hit economic growth hard' and discuss whether it would be likely to do so given the situation outlined in the data.
Mark splitKnowledge 2Analysis 4Evaluation 4
TopicMacroeconomic objectives and policyEconomic growth and the economic cycleAggregate demand
Q7(a)
Using a supply and demand diagram, explain briefly how the Government of Kazakhstan could hold the value of the tenge above its free market exchange rate.
Q7(b)
With reference to the data, discuss whether the depreciation of the tenge will be likely to improve Kazakhstan's current account balance.
Mark splitKnowledge 1Application 3Analysis 2Evaluation 2
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.