Edexcel A-Level Economics — Past Paper Questions

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

1.3.4 Information Gaps · 1.3.2 Externalities

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

3.5.3 Wage Determination

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.

3.4.4 Oligopoly

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

One of two options in Section A — candidates answered this or the other.

2.1.2 Inflation

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

One of two options in Section A — candidates answered this or the other.

4.1.5 Trading Blocs and the WTO

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).

1.2.9 Indirect Taxes and Subsidies

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

4.3.1 Measures of Development

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

4.3.3 Development Strategies

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

One of two options in Section B — candidates answered this or the other.

4.2.1 Absolute and Relative Poverty · 4.3.2 Factors Influencing Growth

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

One of two options in Section B — candidates answered this or the other.

4.3.2 Factors Influencing Growth

With reference to Extract A, explain one likely impact of the growth of digital markets on allocative efficiency.

3.4.1 Efficiency

With reference to Extract B, explain why the change to meat-substitute products may result in an increase in the revenue of food companies. Refer to the concept of price elasticity of demand in your answer.

1.2.3 Elasticities of Demand

With reference to Figure 1, explain the distinction between direct and indirect taxation.

4.5.2 Taxation

With reference to Figure 1, explain the term ‘rate of economic growth’.

2.1.1 Measuring Economic Growth

With reference to Extract C, examine two effects of increased ‘automation’ on the demand for labour.

3.5.1 Demand for Labour

With reference to the information provided and your own knowledge, assess the view that consumers switching to meat-substitute products is an example of rational behaviour.

1.2.1 Rational Decision Making · 1.2.10 Alternative Views of Consumer Behaviour

With reference to Extract A, examine two factors influencing the short‑run aggregate supply of the German economy.

2.3.2 Short-Run Aggregate Supply

With reference to the first paragraph of Extract A, explain the likely relationship between real incomes and subjective happiness.

2.1.1 Measuring Economic Growth

With reference to the information provided, discuss whether the price elasticity of demand for video games is elastic or inelastic.

1.2.3 Elasticities of Demand

With reference to the last paragraph of Extract B, explain two factors which are likely to influence price elasticity of supply.

1.2.5 Price Elasticity of Supply