Paper 1: Microeconomics · H060/01
OCR AS Paper 1, June 2024
All 9 written questions and 15 multiple choice questions from OCR AS Paper 1 (June 2024), Microeconomics. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.
Section A
Q1
Which is a positive externality of a new factory being built in a town?
- AAir pollution
- BEmployment
- CNoise
- DTraffic congestion
Show the answer
The answer is B.
TopicMarket failure
Q2
The diagram shows the production possibility curve for a country that produces computers and cars. Quantity of computers produced 3000 Y 2000 X 1500 0 600 800 1000 Quantity of cars produced The economy is currently producing at point X. What would be the opportunity cost of moving to point Y?
- A200 cars
- B600 cars
- C500 computers
- D2000 computers
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The answer is A.
Q3
Which of these is an example of a normative statement?
- AMore people will use solar energy
- BSolar energy will be the only type of energy available
- CSolar energy is a natural source of energy
- DThe UK government must subsidise solar energy
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The answer is D.
TopicThe economic problem and resource allocationGovernment intervention in markets
Q4
Which of these is not an example of a composite demand good?
- AChair
- BMilk
- COil
- DWood
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The answer is A.
Q5
The diagram shows the demand and supply of oil. The market is initially in equilibrium at E. P S2 S E1 P2 P1 E D2 D Q1 Q What would be the most likely cause of the market equilibrium moving to E1?
- ADecrease of costs of oil production and decrease in air travel
- BDecrease of costs of oil production and increase in air travel
- CIncrease of costs of oil production and decrease in air travel
- DIncrease of costs of oil production and increase in air travel
Show the answer
The answer is D.
Q6
Which of these is not an economic agent?
- ACountries
- BFirms
- CGovernments
- DHouseholds
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The answer is A.
Q7
The table shows the quantity demanded and quantity supplied of a product at different prices. Price Quantity Quantity (£) Demanded Supplied 10 90 20 80 30 60 40 35 50 20 What is the state of the market for this product at a price of £30?
- AExcess demand of 35 units
- BExcess demand of 60 units
- CExcess supply of 25 units
- DExcess supply of 85 units
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The answer is A.
Q8
Which is not a reward for a factor of production?
- Apayment by a tenant of a house to its owner
- Breturn received by a person on their savings account
- Crevenue received by a firm from its total sales
- Dtotal income earned by a self-employed person
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The answer is B.
Q9
The best description of a free good is
- AConsumers do not have to pay for the good
- BScarce resources are not used in the production of the good
- CThe production of the good is fully subsidised
- DThe government provides the good to all consumers
Show the answer
The answer is B.
TopicThe economic problem and resource allocationGovernment intervention in markets
Q10
The government sets a maximum price that can be charged for rents. This is below the market equilibrium price. What will be the result?
- ADemand for rented properties will contract
- BPrice of rental properties will increase
- CPrice of rental properties will not change
- DSupply of rented properties will contract
Show the answer
The answer is D.
TopicDemand, supply and elasticityGovernment intervention in markets
Q11
Which of these is not a type of economic system?
- AMarket economy
- BMixed economy
- CNational economy
- DPlanned economy
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The answer is C.
Q12
The diagram shows the social and private costs of manufacturing chemicals. Benefits, costs, price MSC X MPC P1 Z P Y P2 MPB = MSB = D q1 q Quantity Which of the statements is true?
- ACosts to society are shown by MPC
- BSocial optimum level of output is q
- CThere is a net loss to society of triangle XYZ
- DWithout government intervention profit-maximising firms will charge a price of P2
Show the answer
The answer is C.
TopicMarket failureGovernment intervention in markets
Q13
The price of fidget toys was £5 and the quantity supplied at this price was 2750 units. The price of fidget toys has now increased to £6.25, and the quantity supplied has increased to 3575 units. What is the price elasticity of supply?
- A0.833
- B1.175
- C1.2
- D1.5
Show the answer
The answer is C.
Q14
What is the most likely result of the introduction of division of labour?
- AIncreased costs of production
- BIncreased expenditure on capital equipment per worker
- CIncreased job satisfaction
- DIncreased productivity
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The answer is D.
Q15
Which would occur in a barter economy?
- ADependency on digital currencies
- BDirect exchange of goods
- CUse of gold as a medium of exchange
- DUse of money as a medium of exchange
Show the answer
The answer is B.
Section B
Q16(a)
Using Fig. 1, state what percentage of non-meat eaters thought it was better for their health not to eat meat.
Mark splitKnowledge 1
Q16(b)(i)
Using Fig. 2, calculate the percentage increase in the number of people who signed up for Veganuary from 2017 to 2021.
Mark splitKnowledge 1Application 1
Q16(b)(ii)
Using the income elasticity value (line 25), explain how a fall in income will affect the demand for oat milk.
Mark splitKnowledge 1Application 1
Q16(c)
Using a diagram, explain how supermarkets may respond to the popularity of Veganuary.
Mark splitKnowledge 2Application 2
Q16(d)(i)
Using the value of cross elasticity of demand (lines 20–21), explain the relationship between oat milk and dairy milk.
Mark splitKnowledge 1Application 1
Q16(d)(ii)
Explain how the change in demand for oat milk will affect the producer surplus of oat farmers.
Mark splitKnowledge 2Application 2
Q16(e)
Evaluate, using an appropriate diagram(s), the effects on farmers of an increase in demand for vegan products.
Mark splitApplication 1Analysis 4Evaluation 5
Section C
Q17
Evaluate, using an appropriate diagram(s), the effectiveness of incentives in ensuring efficient resource allocation in an economy.
Mark splitKnowledge 3Application 4Analysis 6Evaluation 7
Q18
Evaluate, using an appropriate diagram(s), the effectiveness of government subsidies to encourage the production of goods such as agricultural products.
Mark splitKnowledge 3Application 4Analysis 6Evaluation 7
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.