Edexcel A Level Economics A Paper 3: Microeconomics and macroeconomics June 2019 question paper 9EC0/03

With reference to Figure 1 and Extract A, explain what is meant by a ‘highly concentrated’ market for potato crisps (Extract A, lines 2–3).

Apart from changes in indirect taxes and subsidies, examine two causes of income inequality within a developed economy such as the UK.

In Extract A, lines 15–16, it was suggested that some firms may respond to the advertising ban by cutting the prices of their products.

Using game theory and the information provided in Figure 1 and Extract A, discuss the effects on firms of cutting prices in an oligopolistic market.

EITHER

Evaluate the microeconomic and macroeconomic effects of increased government spending on education to promote healthy eating in the UK.

Evaluate the likely microeconomic and macroeconomic effects of imposing a tax on HFSS foods .

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With reference to Extract D line 21, explain why ‘opportunity cost’ is a problem for governments of developing countries when servicing debt.

Examine two reasons, apart from access to finance, why 90% of the manufacturing sector in Mozambique ‘is made up of small enterprises’ (Extract E, line 9).

Discuss whether borrowers benefit from microfinance. Make reference to Mozambique in your answer.

EITHER

Evaluate the microeconomic and macroeconomic factors, apart from access to credit and banking, influencing growth and development in Mozambique.

Evaluate the likely microeconomic and macroeconomic effects of relatively high inflation rates in many African countries.

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