OCR A-level Paper 3, October 2021

1. AThey are subjective opinions
2. BThey can be proven true or false
3. CThey explain correctly what is happening in an economy
4. DThey explain the best outcome from a choice that can be made

TopicThe economic problem and resource allocation

1. AConstruction
2. BFishing
3. CLeisure
4. DManufacturing

1. AConstant returns to scale
2. BDiseconomies of scale
3. CEconomies of scale
4. DMinimum efficient scale

TopicCosts, revenues and profit

1. A–2.01
2. B–1.61
3. C–0.50
4. D0.71

TopicDemand, supply and elasticity

1. AAct as a lender of last resort
2. BIssue banknotes and coins
3. CMaintain price stability
4. DManage the government's borrowing

TopicThe financial sectorGrowth and development

1. ACompetition policy
2. BRegulation
3. CSubsidy
4. DTaxation

TopicMarket failureGovernment intervention in marketsCompetition policy and regulation

1. ACustoms union
2. BEconomic union
3. CFree trade area
4. DMonetary union

TopicInternational trade and exchange rates

1. AAn increase in a component of aggregate demand causes a greater final change in real GDP
2. BEconomic growth will increase the rate of environmental degradation
3. CFirms undertake investment to replace depreciating capital and expand their capacity
4. DWhen the economy is approaching full capacity increases in aggregate demand cause inflation

TopicAggregate demandMeasuring economic performanceInternational trade and exchange rates

1. APrice S1 P1 P2 D1 D2 0 Q2 Q1 Quantity
2. BS2 Price S1 P2 P1 D1 0 Q2 Q1 Quantity
3. CPrice S1 P2 P1 D2 D1 0 Q1 Q2 Quantity
4. DPrice P1 P2 D1 0 Q1 Q2 Quantity

1. AGovernment expenditure exceeds tax revenue in the downturn of a business cycle
2. BGovernment expenditure exceeds tax revenue when the economy is at full employment
3. CTax revenue exceeds government expenditure in the downturn of a business cycle
4. DTax revenue exceeds government expenditure when the economy is at full employment

TopicMacroeconomic objectives and policyEconomic growth and the economic cycle

1. ADeflation and disinflation
2. BDisinflation and hyperinflation
3. CHyperinflation and inflation
4. DInflation and disinflation

TopicMeasuring economic performance

1. AMarginal private cost – marginal social cost
2. BMarginal social cost
3. CMarginal social cost + marginal private cost
4. DMarginal social cost – marginal private cost

TopicMarket failure

1. AIt will be purely inflationary
2. BIt will cause economic growth and reduce the rate of inflation
3. CIt will cause economic growth at the cost of higher inflation
4. DIt will result in non-inflationary growth

TopicAggregate supplyEconomic growth and the economic cycleMeasuring economic performance

1. AMonopolistic competition in the long run
2. BMonopolistic competition in the short run
3. CMonopoly in the long run
4. DMonopoly in the short run

TopicCosts, revenues and profitMarket structures

1. AEmployment
2. BExpenditure
3. CHuman Development Index
4. DInflation

TopicGrowth and developmentMeasuring economic performance

1. A3.6%
2. B4.1%
3. C10.8%
4. D13.0%

TopicInternational trade and exchange ratesMeasuring economic performance

1. Alocal restaurant employs five staff – a manager, a chef, a barman and two waiters. What economic theory is this an example of? A Bilateral monopoly
2. BComparative advantage
3. CDerived demand for labour
4. DDivision of labour

TopicDemand, supply and elasticityInternational trade and exchange ratesThe economic problem and resource allocation

1. AIndividuals in developed nations
2. BIndividuals in developing nations
3. CPublic limited companies in developed nations
4. DPublic limited companies in developing nations

TopicGrowth and development

1. AConsumer surplus
2. BEconomic rent
3. CProducer surplus
4. DTransfer earnings

TopicDemand, supply and elasticity

1. Azoo charges £29.17 + VAT (payable at 20%) for admission, giving a total price of £35. The monthly running costs of the zoo are £675 000, with 30 000 visitors each month. In July 2020 the government announced a temporary reduction in the rate of VAT charged to zoos from 20% to 5%. If the zoo continued to price entrance at £35 and visitor numbers remained constant, what would the impact on its profit be? A Increases by £124 900
2. BIncreases by £200 100
3. CIncreases by £325 000
4. DRemains unchanged

TopicGovernment intervention in markets

1. AAggregate demand shifts to the right
2. BContraction along the aggregate demand curve
3. CLong run aggregate supply shifts to the left
4. DShort run aggregate supply shifts to the right

TopicInternational trade and exchange ratesAggregate demandAggregate supply

1. ADirect
2. BIndirect
3. CProgressive
4. DProportional

TopicGovernment intervention in markets

1. AS1 B G F Y C D X D2 E D1 0 Quantity A AYC
2. BBXD
3. CCYE
4. DCFXD

TopicDemand, supply and elasticity

1. Afirm manufactures and sells a limited edition watch at a price of £1000. Within minutes of launching the product online it has sold all its watches, with hundreds of potential customers left disappointed. What has occurred here? A Ceteris paribus
2. BDisequilibrium
3. CFree rider problem
4. DNegative externalities of consumption

TopicMarket failureAggregate demandThe economic problem and resource allocation

1. A28.2%
2. B30.0%
3. C32.1%
4. D40.0%

TopicGovernment intervention in markets

1. AAllocative inefficiency will occur
2. BIndividuals have to make choices
3. CProductivity falls as a result of boredom from repetition
4. DThere will be a missing market as no one is willing to pay for the good

TopicThe economic problem and resource allocation

1. AA firm's revenue will decrease if it increases or decreases its price
2. BA firm's revenue will increase if it decreases its price
3. CA firm's revenue will increase if it increases its price
4. DA firm's revenue will remain constant if it increases its price

TopicDemand, supply and elasticityMarket structures

1. AEnvironmental degradation has decreased
2. BEnvironmental degradation has increased
3. CThe distribution of income has become more equal
4. DThe distribution of income has become more unequal

1. ACharity
2. BPublic limited company
3. CPublic sector
4. DSole trader

TopicBusiness growth and objectives

1. APrice level LRAS1 SRAS1 SRAS2 AD1 Real GDP
2. BPrice level LRAS1 SRAS2 SRAS1 AD1 Real GDP
3. CPrice level LRAS1 LRAS2 SRAS1 AD1 Real GDP
4. DPrice level LRAS2 LRAS1 SRAS1 AD1 Real GDP

TopicMeasuring economic performanceThe labour market

TopicBusiness growth and objectives

TopicDemand, supply and elasticityBusiness growth and objectivesThe labour market

TopicMarket failure

TopicThe economic problem and resource allocation

TopicMeasuring economic performance

TopicInternational trade and exchange rates

TopicInternational trade and exchange ratesGrowth and development