AQA A Level Economics Paper 1: Markets and market failure June 2025 question paper 7136/1

Using the data in Extract A (Figure 1), calculate the difference between India’s share of world exports of rice in 2010 and 2022.

Give your answer to one decimal place.

Explain how the data in Extract A (Figure 1 and Figure 2) show that the rice export ban by India in 2022 is likely to have had a significant impact on the world price of rice.

Extract B (line 19) states: ‘In Nigeria, the demand for rice is very price inelastic’.

With the help of a diagram, explain how the Indian export ban is likely to have affected the market for rice in Nigeria.

Extract C (lines 6–7) states: ‘An alternative would be to impose a maximum price for consumers, as both Sri Lanka and the Philippines have done’.

Using the data and your knowledge of economics, evaluate the view that imposing a maximum price for rice is the best way for a rice-importing nation, such as Nigeria, to ensure the affordability of a basic food for its citizens.

Do not answer Context 2 if you have answered Context 1.

Using the data in Extract D (Figure 3), calculate the median number of storm overflow hours by water company in 2022.

Explain how the data in Extract D (Figure 4) show that household water bills have increased in real terms since privatisation in 1989.

Extract E (line 10) states: ‘The minimum efficient scale in the water industry is large’. With the help of a diagram, explain why the large minimum efficient scale in the water industry is likely to lead to the market being supplied by a few large firms with monopoly power.

Extract F (lines 5–6) states: ‘if regulators impose fines, these costs may be passed on to consumers or reduce investment’. Using the data in the extracts and your knowledge of economics, assess the view that stronger regulation would be a better policy than bringing the water industry back into public ownership.

Explain, with examples, the differences between a private good, a public good and a quasi-public good.

Evaluate the view that oligopolies serve society well.

Explain how technological progress can affect productivity, efficiency and firms’ costs of production.

Assess the view that the main objective of firms is to maximise profits.

Explain the factors that determine a firm’s demand for labour.

Assess the view that a national minimum wage, such as the UK’s National Living Wage, contributes to an improvement in economic welfare.