Edexcel A Level Economics A Paper 3: Microeconomics and macroeconomics June 2025 question paper 9EC0/03

(a) Explain one reason why consumers buy less than the social optimum quantity of healthy food.

(b) With reference to Extract B, examine two likely reasons why wages in supermarkets are above the National Minimum Wage of £10.42.

(c) With reference to Figure 1 and Extract C, discuss whether supermarkets charging similar prices for petrol is evidence of collusion. Use game theory to support your answer.

EITHER

(d) Evaluate the microeconomic and macroeconomic effects of high levels of inflation. Refer to the UK or any other developed economy in your answer.

Explain one reason why consumers buy less than the social optimum quantity of healthy food.

With reference to Extract B, examine two likely reasons why wages in supermarkets are above the National Minimum Wage of £10.42.

With reference to Figure 1 and Extract C, discuss whether supermarkets charging similar prices for petrol is evidence of collusion. Use game theory to support your answer.

EITHER

Evaluate the microeconomic and macroeconomic effects of high levels of inflation. Refer to the UK or any other developed economy in your answer.

Evaluate the microeconomic and macroeconomic effects of a regional trade agreement between the UK and the EU.

Write your answer here:

(a) Using a demand and supply diagram, explain the cost of a subsidy on the market for cooking oil to the Indian government (Extract E, line 6).

(b) Examine two advantages of using the Human Development Index (HDI) to measure the level of economic development in India.

(c) With reference to Extract F, discuss the problems that might be involved with the buffer stock system in India.

EITHER

(d) Evaluate the microeconomic and macroeconomic reasons for the fall in poverty in India.

Using a demand and supply diagram, explain the cost of a subsidy on the market for cooking oil to the Indian government (Extract E, line 6).

Examine two advantages of using the Human Development Index (HDI) to measure the level of economic development in India.

With reference to Extract F, discuss the problems that might be involved with the buffer stock system in India.

EITHER

Evaluate the microeconomic and macroeconomic reasons for the fall in poverty in India.

Evaluate the microeconomic and macroeconomic effects of rapid increases in population in India.

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