AQA A Level Economics Paper 3: Economic principles and issues June 2024 question paper 7136/3

Which one of the following is a consequence of the basic economic problem of limited

Figure 1 shows the production possibility boundary for petrol-powered cars and electric-powered cars in a country's car industry.

If production has moved from Point A to Point B, which one of the following must be true?

Table 1 shows the effect of cash benefits and taxes on household incomes in the UK in 2020–21.

_{Source: Office for National Statistics}

Which one of the following can be concluded from the data in Table 1 regarding the distribution of income between the top and bottom quintile of households?

Table 2 shows the UK's balance of trade in goods and services in successive quarters.

What was the UK's median quarterly balance of trade over the period shown in Table 2?

Which one of the following is an injection into the circular flow of income?

Figure 2 shows the total utility that a consumer derives from their daily consumption of bananas.

Based on the information in Figure 2, which one of the following statements is correct?

A government introduces a number of supply-side policies that increase the size of the country's working population and labour productivity. All other things being equal, which one of the following statements identifies the most likely effects of the policies on the country's economy?

Figure 3 shows how the markets for Good X and Good Y are affected by an increase in the demand for Good X.

It can be concluded that Good X and Good Y are in

Figure 4 shows the short-run average costs (AC), marginal costs (MC), average revenue (AR) and marginal revenue (MR) curves for a typical firm in a monopolistically competitive market.

In the long run, market forces are most likely to cause the firm's revenue curves to

According to the kinked demand curve model of oligopoly, which one of the following would be most likely to explain price stability in an oligopolistic market?

Table 3 shows how the price affects the number of shirts a shop sells in a week.

The marginal revenue of the 12th shirt sold is

In 2015, the UK government introduced a tax on firms using landfill sites to dispose of waste. After the tax was introduced, there was a significant rise in illegal dumping of waste. This is most likely to be an example of

Which one of the following functions of money is likely to be most effective during a period of deflation?

An economy's long-run trend rate of economic growth in real gross domestic product (GDP) is 2.8% per annum. In 2018, the economy's actual real GDP was equal to its trend level of real GDP. Table 4 shows the economy's actual rate of growth in real GDP over a five-year period.

All other things being equal, in which year was the economy likely to experience the most inflationary pressure?

Figure 5 shows the short-run average cost curve (SRAC) for a firm producing electrical components.

Which one of the following is most likely to explain the change in short-run average cost when output rises from 5 units to 10 units?

A firm has a downward-sloping average revenue curve and a U-shaped average total cost curve. Which one of the following meets the condition required for the firm to be productively efficient?

The firm is producing the quantity at which

All other things being equal, Table 7 shows how the number of workers employed by a profit-maximising firm affects its total output per hour and the price it is able to charge for the product produced.

The firm pays its workers £18 per hour. It does not have any other variable costs and its fixed costs are £3 per hour.

How many workers will the firm employ?

Figure 6 shows a perfectly competitive labour market. The left-hand diagram shows the supply of labour (S_LI) and demand for labour (D_LI) for the industry. The right-hand diagram shows the demand for labour (D_LF) for one firm in the industry.

All other things being equal, which one of the following is most likely to cause an increase in the wage rate paid by the firm?

Figure 7 shows two long-run aggregate supply curves (LRAS) for an economy.

Which one of the following is most likely to explain the shift of the long-run aggregate supply curve from LRAS₁ to LRAS₂?

Following a reduction in the level of cash reserves required by the regulator, a commercial bank increases its mortgage lending.

Which one of the following describes how the bank’s liquidity and profitability are most

A country joins a customs union. Which one of the following is the most likely

Which one of the following might be part of a market-based strategy for promoting economic growth and development in a less-developed economy?

Figure 8 shows the market demand (D_L) and supply (S_L) of labour in a labour market with a trade union. The initial trade union negotiated wage is W₂.

The trade union negotiates an increase in the wage from W₂ to W₃. All other things being equal, unemployment in this labour market will increase by

To what extent, if at all, do the data suggest that people living in the South East (SE) of England are better off than people living in the North East (NE) of England?

Explain why investment in infrastructure in the less-prosperous regions could help to improve the prosperity of people living in these regions.

After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the government intervene in the economy to try to reduce the differences in the economic prosperity of the various regions of the United Kingdom?

Justify your recommendation.