AQA A-Level Economics — Past Paper Questions

Inflation resulted in a basket of goods and services that cost £100 in 2015 costing £112 in 2021. Using this information and the data in Extract A (Table 1), calculate the percentage increase in average university rent, in real terms, between 2015 and 2021. Give your answer to one decimal place.

1.3.5 Equilibrium Market Prices

Using the data in Extract A, calculate the ratio of the UK’s GDP per hour worked to $1 of GDP per hour worked in Hungary. Give your answer to two decimal places.

2.1.2 Macroeconomic Indicators

Evaluate the view that the consumption of unhealthy foods can best be reduced through the use of nudges and other techniques from behavioural economics.

1.2.4 Behavioural Economics and Policy · 1.8.5 Merit and Demerit Goods

Assess whether an increase in the money supply is always damaging for an economy.

2.4.3 Central Banks and Monetary Policy · 2.3.3 Inflation and Deflation

Explain the likely impact on consumer surplus and producer surplus as an industry moves away from a competitive market structure to one that is dominated by a few large firms.

1.5.11 Consumer and Producer Surplus

Explain the factors which determine the natural rate of unemployment.

2.3.2 Employment and Unemployment

Evaluate the view that price discrimination is damaging for consumers.

1.5.7 Price Discrimination

Discuss the view that high levels of employment are always beneficial for an economy.

2.3.2 Employment and Unemployment

Explain, using examples, how the existence of economies and diseconomies of scale affect firms’ average costs of production.

1.4.5 Economies and Diseconomies of Scale

Explain how the multiplier and accelerator affect the overall level of economic activity.

2.2.4 The Multiplier

Assess the view that privatised industries, such as electricity and gas, should be taken back into public ownership.

1.8.8 Privatisation and Regulation

Evaluate the view that increasing taxation is the best way to reduce a budget deficit.

2.5.1 Fiscal Policy

Explain how the data in Extract A (Figure 1 and Table 1) show that the supply of university and private rental accommodation has failed to match the increase in student numbers between 2015 and 2021.

1.3.3 Determinants of Supply

Explain how the data in Extract A show that higher productivity may result in higher living standards.

2.2.6 Determinants of LRAS · 2.1.4 Uses of National Income Data

Extract B (lines 3–4) states that ‘Universities have expanded the number of places on offer to students, but the supply of student accommodation is highly inelastic’. With the help of a diagram, explain the impact of the increase in the number of students attending university on the market for student accommodation.

1.3.5 Equilibrium Market Prices · 1.3.4 Price Elasticity of Supply

Extract C (lines 4–5) states ‘Energy and food bills had risen dramatically due to shocks to the economy, such as labour shortages, a depreciation of the pound…’ With the help of a diagram, explain how a depreciation of the pound may cause inflation.

2.2.5 Determinants of SRAS · 2.3.3 Inflation and Deflation

To what extent, if at all, do the data suggest that people living in the South East (SE) of England are better off than people living in the North East (NE) of England?

1.7.1 Distribution of Income and Wealth

Explain why investment in infrastructure in the less-prosperous regions could help to improve the prosperity of people living in these regions.

2.5.2 Supply-Side Policies · 2.6.5 Growth and Development

After considering Extract D, and the original evidence in Extracts A, B and C, would you recommend that the government intervene in the economy to try to reduce the differences in the economic prosperity of the various regions of the United Kingdom? Justify your recommendation.

2.5.2 Supply-Side Policies

Extract C (lines 14–16) states that ‘A maximum rent can help keep the cost of student accommodation lower than it would otherwise be, but risks some landlords withdrawing from the market’. Using the data in the extracts and your knowledge of economics, discuss the advantages and disadvantages of policies the government might introduce to improve the market for student accommodation.

1.8.9 Government Intervention