Edexcel A Level Economics B Paper 1: Markets and how they work June 2019 question paper 9EB0/01

Using Extract A, calculate, to 2 decimal places, Nike ’s profit for the year margin for 2016. You are advised to show your working.

New Balance operates in a competitive market.

Explain one reason why a business such as New Balance differentiates its products.

Using Extract A, calculate, to 2 decimal places, Anta ’s total costs in 2016. You are advised to show your working.

Pictures of the singer Rihanna wearing New Balance ’s white leather training shoes appeared in newspapers. This style of shoe temporarily sold out. However people were still trying to buy them in stores and online, leading to excess demand.

Using a supply and demand diagram to show excess demand, analyse how this may affect the future price of these shoes.

Discuss the extent to which sales maximisation is the main objective for a business such as New Balance.

Interest rates in the UK were stable between 2007 and 2017.

Assess the possible impact of an increase in interest rates on New Balance ’s UK operations.

Assess the importance of economies of scale to the success of firms such as Nike.

New Balance has chosen to manufacture its premium shoes in the US and UK rather than in cheaper locations.

Assess the extent to which this may cause stakeholder conflict.

Evaluate the extent to which regulation of the energy market may benefit consumers.

The UK government intervenes in the education sector. Education is considered a merit good.

Evaluate the likely impact on the UK economy of government intervention in the education sector.