Unit 3: Exploring Economic Behaviour · 1520U30-1
WJEC A-level Unit 3, June 2018
All 19 written questions from WJEC A-level Unit 3 (June 2018), Exploring Economic Behaviour. Each question shows its marks and topic, with an examiner insight on 2, and opens the question paper and mark scheme at the right page.
Section A
Q1(a)
Identify all levels of output at which this firm makes abnormal profit.
Mark splitApplication 1
Q1(b)
Calculate average fixed cost when output is 5 units.
Q1(c)
Explain two reasons why the information in the table shows a firm operating in a perfectly competitive market in the short run.
TopicCosts, revenues and profitDemand, supply and elasticity
Q2
Assess the likely market structure of the Cardiff restaurant market.
Q3(a)
With reference to the data, calculate the rate of economic inactivity in both England and Wales.
Mark splitApplication 2
TopicMeasuring economic performanceAggregate demandEconomic growth and the economic cycle
Q3(b)
With reference to the data, discuss the view that the UK is an optimal currency area.
TopicMeasuring economic performanceAggregate demandEconomic growth and the economic cycle
Q4
With reference to the data and your own economic knowledge, outline why high GNI per capita may not necessarily result in a high value of the Human Development Index (HDI).
TopicGrowth and developmentMeasuring economic performance
Q5(a)
With reference to Figure 1, describe the difference in railway usage when railways were nationalised compared with being privately run.
Mark splitApplication 2
Q5(b)
"The high prices and poor service are the main reasons why many passengers are calling for renationalisation." With reference to the data, discuss the view that renationalisation of the railways will lead to lower prices for passengers.
Mark splitApplication 2Analysis 2Evaluation 2
Q6(a)
Define 'GDP per capita at PPP'.
Mark splitKnowledge 2
Q6(b)
With reference to the data, evaluate the link between aid (as represented by total aid inflow) and GDP per capita at PPP.
Mark splitKnowledge 1Application 2Analysis 1Evaluation 2
TopicMeasuring economic performanceGrowth and development
Q7(a)
Calculate GDP per capita in Tianjin as a proportion of GDP per capita in China as a whole.
Q7(b)
Calculate GDP per capita in Gansu as a proportion of GDP per capita in China as a whole.
Q7(c)
Calculate total income in Gansu as a proportion of total income in Tianjin.
Q8
Assess two reasons why GDP per capita is not always a good measure of living standards in an economy.
Q9
With reference to the data, assess the view that globalisation is good for the Chinese economy.
Q10
With reference to the data, discuss the view that government capital spending is a better method of reducing inequality in China than government current spending.
Mark splitApplication 4Analysis 2Evaluation 4
Examiner insight
- What to cover
- Keep the focus on inequality, not on general macro effects. Capital spending (infrastructure, transport into poorer inland provinces) raises long run earning capacity. Current spending (benefits, pensions, health, education salaries) redistributes income now. Use the Chinese data throughout.
- Evaluation
- Compare speed and reach: current spending helps the poorest immediately but may not last, capital spending is slower and can benefit contractors and richer regions first. Judge which is better for China specifically.
- Watch out
- A significant number analysed the general macroeconomic effects of each type of spending instead of the effect on inequality. That is the wrong question.
- How it went in the exam
- Examiners praised the use of data here and said candidates who answered the precise question scored very high marks.
Q11
Using appropriate diagrams, explain why the migration of workers from inland China to coastal China should help to even out wages across the country. (line 50)
Mark splitKnowledge 2Analysis 2
TopicThe labour market
Q12
Discuss the view that economic development in China is more likely to be achieved through free market forces rather than government intervention.
Mark splitApplication 4Analysis 2Evaluation 4
TopicGovernment intervention in markets
Examiner insight
- What to cover
- Set market forces against intervention for Chinese development. Market forces: migration evening out wages, private investment, competition and efficiency. Intervention: infrastructure, the hukou system, state direction of industry, poverty programmes.
- Evaluation
- Judge by outcome in China: free markets bring growth but also inequality and market failure, while intervention has produced white elephant projects such as the Ordos housing scheme. Weight the two with evidence.
- Watch out
- The theory was generally good. Marks were lost for not making the answer about China. Pull in the Chinese material, including the hukou system and the migration point from the previous question.
- How it went in the exam
- Examiners said Q11 gave a useful steer into this question, on market forces and wages evening out between coastal and inland China.
Question text is quoted from the question papers, © WJEC CBAC Ltd, 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.