AQA A Level Economics Paper 3: Economic principles and issues June 2022 question paper 7136/3

A positive statement

Which one of the following is a nudge technique that could be used to encourage healthy eating?

Figure 1 shows the production possibility diagram for an economy producing capital goods and consumer goods.

The opportunity cost of producing an additional unit of capital goods is

Table 1 shows the individual price indices and the weightings of the three goods that make up a price index.

What was the percentage increase in the overall price index between April 2021 to April 2022?

When using data to make international comparisons of the standard of living, purchasing power parity (PPP) exchange rates are more useful than market exchange rates.

This is because PPP exchange rates take into account differences in countries’

Figure 2 shows two aggregate demand (AD₁ and AD₂) curves and the short-run aggregate supply (SRAS) curve for an economy.

Which one of the following is the government most likely to increase if it wishes to use fiscal policy to reduce national output from Y₁ to Y₂?

Which one of the following is a reason why the extension of property rights is likely to reduce market failure?

Figure 3 shows the demand curve for a firm’s scarves.

Which one of the following statements is true when the price of scarves is reduced from £30 to £25?

A firm charging different customers different prices for the same product is practising

In an economy, an index showing the change in the money supply multiplied by the velocity of circulation increases from 100 to 115.5. At the same time, the final output produced by the economy increases from 100 to 110.

According to Fisher’s equation of exchange, the price level will increase by

Systemic risk is most likely to occur in financial systems when

Figure 4 shows the aggregate demand (AD) curve, the short-run aggregate supply (SRAS₁ and SRAS₂) curves and the long-run aggregate supply (LRAS₁ and LRAS₂) curves for an economy.

All other things being equal, which one of the following is most likely to move the economy from point M to point N ?

Which one of the following is a role of the World Trade Organisation?

Which one of the following is a reason why the supply of cars is likely to be price elastic in the short run when the price of cars increases?

Which one of the following diagrams, A, B, C or D, shows the most likely short-run impact on an economy of an improvement in technology in the production process?

Which one of the following best explains the existence of relative poverty?

Table 2 shows the amount paid in tax by individuals at different levels of income.

This tax is an example of a

Which one of the following is a supply-side policy aimed at reducing the natural rate of unemployment?

Figure 5 shows the average revenue (AR), marginal revenue (MR) and marginal cost (MC) curves for an industry which was perfectly competitive but is now a monopoly. The cost and revenue curves remain unchanged.

Which of the following areas shows the total deadweight loss of consumer and producer surplus resulting from the structure of the industry changing from perfect competition to

There is a reduction in the market demand for the product supplied by firms operating in a perfectly competitive industry.

All other things being equal, which one of the following will happen to firms’ average and marginal revenue as a result of this change?

Figure 6 shows the marginal utility that a consumer gains from eating apples.

When 7 apples per day are consumed

Table 3 shows different combinations of performance for three macroeconomic indicators.

Which one of the combinations, A, B, C or D, is most likely to indicate an economy experiencing an economic boom?

Table 4 shows the values of nominal GDP and a price index in two different years.

What was the value of real GDP in 2019, to the nearest £ billion, expressed in 2015 prices?

Figure 7 shows the average revenue and marginal revenue (AR and MR) curves and the average cost and marginal cost (AC and MC) curves for a firm in monopolistic competition in the short run.

At the profit maximising price and output the firm will

The price of a government bond was £10 000 when it was issued. The bond does not have a maturity date and the government is not intending to buy back the bond. The bond pays £200 per year to the bond holder and has a market price of £8 000.

Which one of the following fractions represents the yield on the bond?

Table 5 contains figures from the balance sheet of a commercial bank.

What is the value of this bank’s total liquid assets?

Changing patterns of consumption have meant that summer holidays at UK seaside towns have become less popular. As a result, UK seaside holiday towns are affected by seasonal unemployment and increasing structural unemployment.

Which one of the following is the most likely consequence of this change in the pattern of consumption?

Figure 8 shows the marginal cost (MC_L), average cost (AC_L) and marginal revenue product (MRP_L) curves for labour in a specialised computer programming industry.

Following a series of mergers between firms in this industry, a single large firm remains as a monopsony employer.

Which one of the following is the most likely to result from a competitive labour market being replaced by a monopsony employer?

Table 6 shows the value of the UK’s Human Development Index (HDI) over the period 2015 to 2019.

All other things being equal, which one of the following is most likely to explain the trend shown in Table 6 ?

Unemployed workers in the south of a country are unable to take up jobs in the north of the country due to higher housing costs. This is an example of

Turn over for Section B

To what extent do the data support the view that Boeing has been more successful than Airbus since 2014? You must use the data in Extract B to support your assessment.

Explain the factors that a commercial aircraft manufacturer, such as Boeing or Airbus, should consider when forecasting the future sales of its aircraft.

After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the UK government provides financial and other support to companies involved in the production of commercial aircraft? Justify your recommendation.