Paper 1: Microeconomics · H060/01

OCR AS Paper 1, June 2025

All 9 written questions and 15 multiple choice questions from OCR AS Paper 1 (June 2025), Microeconomics. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Section A

Q11 mark

Whose objective is it to raise tax revenue?

AEmployees
BFirms
CGovernment
DHouseholds

Show the answer

The answer is C.

TopicMacroeconomic objectives and policyThe labour market

Question paper p.2 Mark scheme p.11 Open in the tool

Q21 mark

The table shows the production possibility curve for a country that produces capital and consumer goods. Capital goods Consumer goods (million units) (million units) 0 10 20 30 40 What is the opportunity cost of moving from 20 million units of capital goods to producing 30 million units of capital goods?

A10 million capital goods
B20 million capital goods
C8 million consumer goods
D15 million consumer goods

Show the answer

The answer is D.

TopicThe economic problem and resource allocation

Question paper p.2 Mark scheme p.11 Open in the tool

Q31 mark

What is most likely to occur, if the price of a smartphone fell from £950 to £800?

ADemand curve shifts right
BExtension in demand
CExtension in supply
DSupply curve shifts left

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The answer is B.

TopicDemand, supply and elasticity

Question paper p.2 Mark scheme p.11 Open in the tool

Q41 mark

Which of these would cause a shift outwards of the production possibility curve?

ADecrease in productivity
BIncrease in unemployment
CTechnological improvements
DUnderutilisation of machinery

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The answer is C.

TopicThe economic problem and resource allocationMeasuring economic performance

Question paper p.3 Mark scheme p.11 Open in the tool

Q51 mark

Abottled water firm sells 600 bottles of water every week at a price of 80p. The price elasticity of demand for bottled water is –1.5. What is the change in weekly sales revenue if the firm increases the price to £1.20? A £60
B£240
C£300
D£600

Show the answer

The answer is C.

TopicDemand, supply and elasticity

Question paper p.3 Mark scheme p.11 Open in the tool

Q61 mark

Achange in price will usually result in a change in quantity demanded. The size of this change will be determined by the: A elasticity of demand
Bopportunity cost of the change
Cproducer surplus available
Dprofit gained from the change

Show the answer

The answer is A.

TopicDemand, supply and elasticityThe economic problem and resource allocation

Question paper p.3 Mark scheme p.11 Open in the tool

Q71 mark

The diagram shows a shift in the supply curve for wheat production. Price S1 S P1 P D 0 q1 q Quantity What could have caused this shift from S to S1?

AIncrease in price
BIncrease in productivity
CIncrease in subsidy
DIncrease in tax

Show the answer

The answer is D.

TopicDemand, supply and elasticityGovernment intervention in markets

Question paper p.4 Mark scheme p.11 Open in the tool Practise the supply and demand diagram Practise the subsidy diagram

Q81 mark

What is a reward for labour?

AInterest
BProfit
CRent
DWages

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The answer is D.

Question paper p.4 Mark scheme p.11 Open in the tool

Q91 mark

What is an example of market failure?

ABuffer Scheme
BPollution
CSubsidies
DTaxes

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The answer is B.

TopicMarket failureGovernment intervention in markets

Question paper p.4 Mark scheme p.11 Open in the tool

Q101 mark

What will be an incentive for consumers to reduce consumption of orange juice? Increase in the price of:

Aapple juice
Bapples
Corange juice
Doranges

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The answer is C.

TopicAggregate demand

Question paper p.5 Mark scheme p.11 Open in the tool

Q111 mark

What is one of the features of a planned economy?

ACapitalism
BGovernment intervention
CInvisible hand
DMarket clearing price

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The answer is B.

TopicGovernment intervention in markets

Question paper p.5 Mark scheme p.11 Open in the tool

Q121 mark

The table shows the price of good A and the quantity demanded for good B, a competitive good. Price of Good A Quantity Demanded of Good B £160 500 £200 560 What is the cross elasticity of demand?

A0.48
B0.54
C0.67
D2.08

Show the answer

The answer is A.

TopicDemand, supply and elasticity

Question paper p.5 Mark scheme p.11 Open in the tool

Q131 mark

Government intervention in the market can result in government failure due to a more inefficient allocation of resources. What is this most likely to result in?

AFewer public goods
BGreater welfare loss
CHigher levels of taxation
DLess information provision

Show the answer

The answer is B.

TopicGovernment intervention in marketsMarket failureThe economic problem and resource allocation

Question paper p.6 Mark scheme p.11 Open in the tool

Q141 mark

Productive efficiency is when a firm is:

Amaximising the total costs of production
Bmaximising its profits and revenue
Cproducing goods and services that match consumer preferences
Dproducing maximum outputs from the given inputs

Show the answer

The answer is D.

TopicCosts, revenues and profitMarket structures

Question paper p.6 Mark scheme p.11 Open in the tool

Q151 mark

Opportunity cost is useful as it shows the value of:

Aall the choices available
Bthe choice given up
Cthe choice of scarce resources
Dthe choice that the consumer made

Show the answer

The answer is B.

TopicThe economic problem and resource allocation

Question paper p.6 Mark scheme p.11 Open in the tool

Section B

Q16(a)1 mark

Using Fig. 1, state which form of road transport had the greatest percentage fall in greenhouse gas emissions between 1992 and 2022.

Question paper p.9 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(b)(i)2 marks

Using Fig. 2, calculate which year had the largest percentage rise in the number of new electric cars sold in the UK.

Question paper p.9 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(b)(ii)2 marks

Using the extract, explain how division of labour is used in the production of electric cars.

TopicThe economic problem and resource allocation

Question paper p.9 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(c)4 marks

Using a diagram, explain what effect the removal of indirect tax would have on the market of electric cars.

TopicGovernment intervention in markets

Question paper p.10 Mark scheme p.16 Examiner report p.2 Open in the tool Draw it: indirect tax diagram

Q16(d)(i)4 marks

Using the information on income and elasticity of demand in the extract, explain the likely effect of a continuing fall in real income on electric car producers.

TopicDemand, supply and elasticityMeasuring economic performance

Question paper p.10 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(d)(ii)Explain2 marks

Explain the effect on the price and quantity demanded of electric cars of an increase in the price of cobalt.

TopicDemand, supply and elasticity

Question paper p.11 Mark scheme p.15 Examiner report p.2 Open in the tool

Q16(e)Evaluate10 marks

Evaluate, using an appropriate diagram, the effect of an increase in demand for electric cars on people in the Democratic Republic of the Congo.

TopicDemand, supply and elasticity

Question paper p.12 Mark scheme p.18 Examiner report p.2 Open in the tool Draw it: supply and demand diagram

Section C

Q17OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s) the impact of these changes in price on consumer surplus.

TopicDemand, supply and elasticity

Question paper p.14 Mark scheme p.22 Examiner report p.2 Open in the tool Draw it: supply and demand diagram

Q18OptionalEvaluate20 marks

Evaluate, using an appropriate diagram(s), the effect on consumers of an economy devoting more resources to the output of capital goods.

TopicThe economic problem and resource allocation

Question paper p.14 Mark scheme p.24 Examiner report p.2 Open in the tool Draw it: PPF diagram

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.

Section A

Section B

Section C

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