Paper 1: Microeconomics · H060/01
OCR AS Paper 1, June 2022
All 10 written questions and 15 multiple choice questions from OCR AS Paper 1 (June 2022), Microeconomics. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Section A
Q1
Which factor of production receives the reward of interest?
- ACapital
- BEnterprise
- CLabour
- DLand
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The answer is A.
Q2
The quantity supplied of a product is 2000 when its price is £40. If price elasticity of supply is 0.8, what will be the quantity supplied when price rises to £50?
- A2160
- B2400
- C2500
- D3600
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The answer is B.
Q3
Which of the following is an example of composite demand?
- ADemand for chairs increases as the price of tables falls
- BDemand for delivery drivers increases as more consumers shop online
- CDemand for Samsung mobile phones decreases as iPhones become cheaper
- DDemand increases for cheese leading to a fall in supply of cream
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The answer is D.
Q4
Which change would cause the demand curve for houses to shift to the right?
- AA decrease in income tax
- BA decrease in the cost of renting houses
- CAn increase in emigration to the EU
- DAn increase in the price of houses
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The answer is A.
TopicDemand, supply and elasticityThe labour marketGovernment intervention in markets
Q5
The diagrams below show the relationship between price and quantity supplied of a product. Diagram A Price S Quantity supplied Diagram B Price S Quantity supplied Diagram C Price S Quantity supplied Diagram D Price S Quantity supplied Which of the supply curves is likely to show the relationship between price and quantity supplied over the long run?
- ADiagram A
- BDiagram B
- CDiagram C
- DDiagram D
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The answer is D.
Q6
Due to excellent growing conditions the wheat harvest is much greater than is usual. What impact would this be most likely to have on the equilibrium price and output of wheat?
- AFall in equilibrium price and decrease in equilibrium output
- BFall in equilibrium price and increase in equilibrium output
- CRise in equilibrium price and decrease in equilibrium output
- DRise in equilibrium price and increase in equilibrium output
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The answer is B.
Q7
The table below shows the change in the demand for a product given a change in income. What type of good does this information indicate the product is? Quantity Year Income demanded per annum 2020 £30 000 2021 £36 000
- AInferior good
- BNormal good
- CSubstitute good
- DSuperior good
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The answer is B.
Q8
The diagram below shows the supply and demand for strawberries. Price S P1 D Quantity Which of the following would be most likely to happen if the price was set at P1?
- AMarket price will fall
- BMore suppliers will enter the market
- CThe market will be in equilibrium
- DThere will be a shortage
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The answer is D.
Q9
What is the main role of firms in a market economy?
- ATo look after the welfare of all citizens
- BTo pay subsidies
- CTo provide goods and services
- DTo provide labour
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The answer is C.
Q10
When is productive efficiency achieved?
- AAccount is taken of all external costs and benefits as well as the internal costs and benefits
- BGoods and services are allocated according to who needs them most
- CMarginal utility of the good or price consumers are willing to pay equals the marginal cost
- DMaximum number of goods and services are produced with a given amount of inputs
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The answer is D.
TopicMarket failureCosts, revenues and profitMarket structures
Q11
Which of the following is a definition of ceteris paribus?
- AAssuming everything else stays constant
- BDemand is exactly equal to supply
- CResources used in the production process
- DThe Government intervenes in the market
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The answer is A.
Q12
Which of these is a free good?
- AFire service
- BHealthcare
- CRoads
- DSunlight
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The answer is D.
Q13
If the cross elasticity of demand between two goods is –1.2 what are the two goods?
- AComplements
- BInferior
- CSubstitutes
- DUnrelated
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The answer is A.
Q14
What are positive externalities?
- ABenefits gained by consumers when they buy a product
- BBenefits gained by governments from the production of a product
- CBenefits gained by producers when they sell a product
- DBenefits gained by third parties who are not directly involved in the consumption or production of a product
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The answer is D.
TopicMarket failureAggregate demand
Q15
Which of the following is a positive statement?
- ADeflation is bad for everyone
- BLow unemployment benefits everyone
- CMarket economies are always the most efficient
- DThe UK is a mixed economy
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The answer is D.
TopicThe economic problem and resource allocationMeasuring economic performance
Section B
Q16(a)
Using Fig. 1, calculate how much more of the poorest households' income was spent on energy compared to the richest households in 2016.
Q16(b)(i)
Using Fig. 2, if the UK Government introduces a tax so that there is a 50% increase in the total electricity price in 2018 compared to 2017, what would the price be per kilowatt hour (kWh) in the UK?
Q16(b)(ii)
State what impact the increase in electricity price would have on consumer surplus.
Q16(b)(iii)
Explain why money is used as a medium of exchange to pay for electricity.
Q16(c)
Using a diagram, explain the costs experienced by the residents of Lancashire due to the extraction of shale gas.
Q16(d)(i)
What type of economic system is likely to have the most government intervention?
Q16(d)(ii)
Using the information provided, explain two benefits of government intervention in the energy market. 1 2
Q16(e)
Evaluate, using an appropriate diagram(s), the effects of an increase in the supply of alternative greener energy on the electricity market.
Section C
Q17
Evaluate, using an appropriate diagram(s), the factors that determine the price elasticity of demand for a product.
Q18
Evaluate, using an appropriate diagram(s), the role of specialisation and division of labour in addressing the problem of scarcity.
Question text is quoted from the question papers, © OCR (Oxford Cambridge and RSA), 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.