WJEC · Microeconomics · The economic problem and resource allocation

WJEC Economics past paper questions: The economic problem and resource allocation

Every WJEC question on The economic problem and resource allocation from 2016 to 2025: 13 data response questions, 2 short answer questions and 10 multiple choice questions. It covers Market failure, Demand, supply and elasticity, Government intervention in markets, Growth and development and Costs, revenues and profit. Each question links to its paper, mark scheme and examiner report.

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SubtopicsMarket failure 4Demand, supply and elasticity 3Government intervention in markets 2Growth and development 2Costs, revenues and profit 1National income and the circular flow 1Aggregate demand 1Economic growth and the economic cycle 1International trade and exchange rates 1

Data response questions on the economic problem and resource allocation

A-level Unit 3, June 2025, Q2(a)2 marks

Using the production possibility frontier diagrams, complete the following opportunity cost ratios. (i) For country A 1 m coffee bags:.................................. m gold (kg). (ii) For country B 1 m coffee bags:.................................. m gold (kg).

Question paper p.4 Mark scheme p.5 Examiner report p.16 Open in the tool Draw it: PPF diagram

A-level Unit 3, June 2025, Q2(b)3 marks

Using your answers to part (a), suggest a suitable quantity of gold country B could exchange for 1 million bags of coffee from country A, describing how both countries gain from this trade.

Question paper p.5 Mark scheme p.5 Examiner report p.16 Open in the tool

AS Unit 2, June 2025, Q1(b)4 marks

Case study: Heating Up

(i) Using an example from the data, outline the concept of opportunity cost. (ii) Using an example from the data, outline the concept of complementary goods.

Question paper p.3 Mark scheme p.4 Examiner report p.11 Open in the tool

AS Unit 1, June 2024, Q17(a)4 marks

With reference to the data, outline the likely effect of this infrastructure spending on the Welsh economy's production possibility frontier. Illustrate your answer with an appropriate diagram.

Question paper p.12 Mark scheme p.7 Examiner report p.7 Open in the tool Draw it: PPF diagram

AS Unit 2, June 2024, Q1(a)2 marks

Case study: REDUCING THE THREAT OF CLIMATE CHANGE

'Tackling climate change is not an issue which can be left to the free market' (line 2). Briefly outline one reason why the free market has led to climate change.

Question paper p.3 Mark scheme p.4 Examiner report p.10 Open in the tool

AS Unit 2, June 2024, Q1(c)Discuss8 marks

Case study: REDUCING THE THREAT OF CLIMATE CHANGE

Discuss the likely effectiveness of a tradeable carbon emissions permits scheme, (EU ETS or UK ETS), in reducing carbon emissions.

Examiner insight

What to cover: Explain the scheme's mechanism: the regulator restricts the supply of permits, firms that cut emissions can sell surplus permits, so there is a financial incentive to abate where it is cheapest, and the cap can be tightened over time.
Watch out: Do not conflate tradable permits with a carbon tax. The two are different interventions. The strongest answers named both the restricted supply and the incentive to sell surplus permits.

Question paper p.3 Mark scheme p.6 Examiner report p.10 Open in the tool Practise the negative externality diagram

AS Unit 1, June 2023, Q16(c)Explain3 marks

Explain how the price of a visit to the go-karting centre should change to allocate resources more efficiently.

Question paper p.11 Mark scheme p.5 Examiner report p.7 Open in the tool

AS Unit 1, June 2022, Q16(a)2 marks

Using an example from the data, describe the concept of opportunity cost.

Question paper p.14 Mark scheme p.5 Examiner report p.4 Open in the tool

AS Unit 1, June 2022, Q16(b)8 marks

Using the data, consider whether the population changes will lead to an outward shift in Wales's production possibility frontier (PPF).

Examiner insight

What to cover: The command word consider requires evaluation. Show what the population changes in the data do to the quantity and quality of Wales's factors of production, and so to potential output.
Watch out: Most candidates could argue the inward shift but not the outward one, so evaluation marks were limited. Build the case both ways.

Question paper p.14 Mark scheme p.5 Examiner report p.4 Open in the tool Practise the PPF diagram

AS Unit 2, June 2022, Q1(a)2 marks

Case study: SALMON FARMING IN SCOTLAND

Using an example from the data, describe what is meant by the term 'scarcity' (line 2).

Question paper p.3 Mark scheme p.4 Examiner report p.7 Open in the tool

AS Unit 1, June 2019, Q16(b)Identify2 marks

Identify and calculate the opportunity cost of buying the house.

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

AS Unit 1, June 2019, Q17(a)2 marks

Describe how prices help to allocate resources between different users.

Question paper p.12 Mark scheme p.5 Examiner report p.4 Open in the tool

AS Unit 1, June 2016, Q164 marks

Illustrate your answer using a production possibility diagram.

Question paper p.14 Mark scheme p.4 Examiner report p.3 Open in the tool Draw it: PPF diagram

Short answer questions on the economic problem and resource allocation

AS Unit 1, June 2018, Q16(a)3 marks

Adapt Diagram 1 to illustrate the impact on resource allocation of total specialisation in product X. Explain your answer.

Question paper p.12 Mark scheme p.4 Examiner report p.4 Open in the tool Draw it: PPF diagram

AS Unit 1, June 2018, Q16(b)3 marks

Adapt Diagram 2 to illustrate the impact of division of labour on productivity within the economy. Explain your answer.

Question paper p.12 Mark scheme p.5 Examiner report p.4 Open in the tool Draw it: PPF diagram

Multiple choice questions

AS Unit 1, June 2025, Q1
Complete the following statement: A straight line PPF indicates that...
AS Unit 1, June 2025, Q3
Identify the correct term that completes the following statement. 'Air is often cited as an example of a(n)... because it is generally abundant and individuals can breathe it without incurring any cost.'
AS Unit 1, June 2023, Q2
Which one of the following is an injection into the circular flow of income?
AS Unit 1, June 2023, Q4
Which one of the following can be concluded from the diagram?
AS Unit 1, June 2019, Q1
Which of the following is the best example of a 'free good'?
AS Unit 1, June 2019, Q7
Which of the following is not an assumption of free markets operating?
AS Unit 1, June 2018, Q7
Assume that resources are perfectly substitutable in an economy that makes cars and butter as shown in the production possibility frontier below. Between points X and Y, the opportunity cost of producing one more tonne of butter equals…
AS Unit 1, June 2017, Q1
Production Possibility Frontier AB has changed to AC. This is most likely to have been caused by: Agricultural Goods A B C Military Goods
AS Unit 1, June 2017, Q8
A professional rugby players' union negotiates a contract that dramatically increases all players' salaries. How would this influence the opportunity cost for a player who was considering giving up rugby to pursue a career in television…
AS Unit 1, June 2016, Q1
The economy below produces only two goods, X and Y. The opportunity cost of increasing the production of X from 3 to 4 units is: Good Y 0 Good X

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.

Data response questions on the economic problem and resource allocation

Examiner insight

Examiner insight

Short answer questions on the economic problem and resource allocation

Multiple choice questions

More WJEC topics: Microeconomics