Edexcel A Level Economics A Paper 1: Markets and business behaviour June 2023 question paper 9EC0/01

In a major reform of its command economy, the Cuban government will allow small private businesses to operate in most fields. Free market economists have long called for the role of small business to be expanded to help jump‑start the economy and to create jobs.

(Source adapted from: https://www.telegraph.co.uk/news/2021/02/07/ cuba-allows-massive-expansion-private-businesses/)

With reference to the information provided, explain one advantage of a free market economy.

Which one of the following economic thinkers supported the idea of a command economy?

The production possibility frontier shows last year’s harvest for a UK farmer at point X.

Calculate the opportunity cost of the decision by the farmer to harvest 6 units of wheat this year at point Y (movement from point X to point Y).

Explain the impact on efficiency of producing at point W in the following year.

Which one of the following would be most likely to help the farmer reach point Z?

An increase in

A luxury brownie baker is faced with falling demand as incomes fall.

The likely income elasticity of demand for a luxury good is:

Small local bakeries have many of the characteristics of monopolistic competition.

Draw the short run profit maximising equilibrium of a loss‑making luxury brownie baker.

An annual season ticket for a train journey between London and Reading is planned to increase from £5 044 to £5 664 in 2023.

(Source adapted from: https://commonslibrary.parliament.uk/ how-much-could-rail-fares-increase-by-in-2023-and-why)

With reference to the information provided, calculate the percentage change in the price of an annual season ticket.

Explain the likely impact of the increase in price of a season ticket on consumer surplus.

The diagram below shows the demand and supply for sugary drinks.

Which one of the following areas represents the change in producer surplus when a minimum price is imposed?

Index of pay in the public and private sector.

Nominal average weekly earnings (base year January 2018 = 100)

(Source adapted from: https://www.ft.com/content/48dafbb9-371d-4683-9afb-26652add888c)

Which one of the following is the ratio of public sector pay relative to private sector pay in 2022?

Over 90% of nurses work in the public sector. Nurses in the public sector have experienced wage rises lower than those in the private sector over the past 10 years.

why nurses in the public sector have had lower wage rises than those in the private sector.

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With reference to Figure 1, explain the market structure that best describes the market for UK online streaming services.

With reference to the information provided, assess whether Netflix subscribers behave rationally.

With reference to the information provided, examine the likely numerical value of the cross elasticity of demand between UK online streaming services.

With reference to Extract C, discuss the likely private and external benefits of viewing educational websites and TV programmes.

Using examples from Figure 2 or Extract B, discuss the likely impact of price discrimination on a firm’s profits. Use a relevant diagram to support your answer.

The average UK household energy bill (gas and electric combined) rose 80% from £1 971 in 2021 to £3 549 in 2022.

(Source adapted from: https://www.telegraph.co.uk/money/consumer-affairs/ energy-price-cap-rise-october-2022-what-happen-household-bills/)

Evaluate possible methods of government intervention to control household energy bills in the UK.

Using 2021 estimates of carbon emissions, it is estimated that a petrol car journey from London to Glasgow emits approximately 3.3 times more carbon dioxide per passenger than the equivalent journey by train.

(Source adapted from: https://www.gov.uk/government/statistics/transport-and-environment-statistics-autumn-2021/transport-and-environment-statistics-autumn-2021)

Evaluate possible methods of government intervention to reduce carbon emissions caused by road transport in the UK.

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