Edexcel A-Level Economics — Past Paper Questions

With reference to Figure 1 and Extract A, explain what is meant by ‘price inelastic demand’ (line 8).

1.2.3 Elasticities of Demand

Examine one likely externality that arises when a producer generates electricity by burning gas. Use a diagram to show the external costs of production.

1.3.2 Externalities

With reference to Figure 2 and Extract B, discuss the possible constraints on business growth for firms supplying energy to households in the UK.

3.1.2 Business Growth

Evaluate the microeconomic and macroeconomic factors that explain gender-based wage differences in the UK oil and gas industry.

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

3.5.3 Wage Determination

Evaluate the microeconomic and macroeconomic advantages for a country specialising in energy production using gas.

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

4.1.2 Specialisation and Trade

Explain one reason why a country might operate a managed exchange rate. Refer to Extract D in your answer.

4.1.8 Exchange Rates

With reference to the second paragraph of Extract E, examine two likely problems for the expansion of the chocolate industry in Ghana.

4.3.2 Factors Influencing Growth

Discuss factors influencing the level of aggregate demand in Ghana. Use an aggregate demand and aggregate supply diagram in your answer.

2.2.1 Aggregate Demand

Evaluate the microeconomic and macroeconomic effects of high interest rates in Ghana, or another developing country of your choice.

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

2.6.2 Demand-Side Policies · 4.4.3 Role of Central Banks

Evaluate the microeconomic and macroeconomic effects of Ghana joining the African Continental Free Trade Agreement (Extract F).

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

4.1.5 Trading Blocs and the WTO

With reference to Extract A, explain the likely reasons for the change in price of electronic devices. Include a supply and demand diagram in your answer.

1.2.6 Price Determination

Explain what is meant by the ‘unintended consequence’ (Extract B, line 9) of the plastic tax.

1.4.2 Government Failure

With reference to Figure 4 and your own knowledge, explain the distinction between a progressive and a regressive tax.

4.5.2 Taxation

With reference to Figure 1, explain the term ‘inflation rate’.

2.1.2 Inflation

Examine two factors which might influence the supply of labour in the electronics industry.

3.5.2 Supply of Labour

With reference to Extract A and your own knowledge, assess the view that it is irrational to buy plastic carrier bags when shopping.

1.2.1 Rational Decision Making · 1.2.10 Alternative Views of Consumer Behaviour

With reference to Figure 4 and Extract A, examine the likely impact of the ‘freeze in income tax thresholds’ (Extract A line 1) on aggregate demand.

2.2.1 Aggregate Demand · 4.5.2 Taxation

Assess the likely impact of an increase in real wages on the UK economy. Use an aggregate demand and aggregate supply diagram in your answer.

2.2.1 Aggregate Demand · 2.2.2 Consumption

Assess whether firms in the electronics industry benefit from economies of scale.

3.3.3 Economies of Scale

With reference to Extract A, explain the likely numerical value for the income elasticity of demand for reusable cleaning products.

1.2.3 Elasticities of Demand