OCR A Level Economics Microeconomics June 2024 question paper H460/01

Explain what is meant by ‘competitive supply’.

Explain, using an appropriate diagram, the situation in the housing market described in lines 1–3

Refer to Fig. 1.

Calculate the percentage change in average house prices between August 2020 and August 2021.

Compare the trend in average house prices and rental prices between 2015 and 2021.

“A change to legislation in 2021 means that planning permission is no longer required to convert commercial buildings…into homes.” Lines 9–11.

Evaluate, using evidence from the stimulus material, the effectiveness of reducing regulation, such as planning permission, in order to increase the supply of housing and tackle the shortage of housing in the UK.

* Evaluate, using evidence from the stimulus material, the extent to which the UK housing market

can be considered to be an oligopoly.

2* There are more than 10 million dogs in the UK, with 34% of UK households owning a dog. In 2023, demand for the services of dog walkers increased in the UK. Dog walkers operate in a monopolistically competitive market, similar to that for hairdressing and painting and decorating.

Evaluate, using an appropriate diagram(s), whether monopolistic competition benefits

consumers.

3* In March 2020 the Welsh Government introduced a minimum price for alcohol of £0.50 per unit. According to the minimum pricing formula in Wales, a 70 cl bottle of vodka priced at £9.75 in England would have to be sold at a minimum price of £13.12 in Wales.

Evaluate, using an appropriate diagram(s), the likely microeconomic effects of such minimum

prices.

4* In May 2023, NHS waiting lists for routine hospital treatment rose to 7.42 m, the highest figure since records began in 2007.

Evaluate whether healthcare should be provided by the government.

5* In recent years, labour mobility has not changed significantly in the UK. Governments seek to increase the mobility of labour using a range of policies.

Evaluate the impact an increase in labour mobility is likely to have on labour markets.