OCR A Level Economics Microeconomics November 2020 question paper H460/01

1 (a) Draw a PPC diagram to explain the following statements:

with dependable electricity, GDP growth across sub-Saharan Africa could be up to 2% per annum higher than current rates (lines 8–9);

Uganda has seen a fall in the agriculture sector’s contribution to GDP at the same time as growth in the service sector’s contribution. (lines 16–18).

Explain what is meant by a ‘barter economy’.

Refer to Fig. 1.

Calculate the five-firm concentration ratio in the UK energy supplier market.

Refer to lines 11–13.

Calculate the income elasticity of demand for the service sector in Uganda over the last two years.

Evaluate the impact of the increase in reliable energy supplies on the service sector in

Uganda.

* The concept of rationality helps economists to understand the behaviour of economic agents.

Evaluate, using evidence from the stimulus material, how rationality may help us to understand

the behaviour of firms.

2* In recent years, most towns and cities have seen a rapid growth in the number of coffee shops and sandwich bars, the majority of which are small and locally-owned.

Evaluate, using an appropriate diagram(s), whether such small firms, operating in a monopolistically

competitive market, can be economically efficient.

3* The percentage of employees in the UK choosing to be a member of a trade union, has fallen from 27% to 20% in the last 20 years. Across different industries, this figure ranges from 48% in the education sector to 3% in the food service sector.

Evaluate, using an appropriate diagram(s), whether trade union activity helps to encourage the

efficient operation of the UK labour market.

4* The total police budget in the UK for 2018/19 was £12.3bn, most of which was funded from taxation. This is an amount of money equivalent to £186 per person.

Evaluate the effectiveness of state provision of public goods.

5* NHS figures show that a declining number of children are receiving all their routine vaccinations, including meningitis and the combined measles, mumps and rubella (MMR) vaccine. In some cases, vaccination rates of children are as low as 90%.

Evaluate the significance of information failure in decisions made about the consumption of merit

goods.