Government Intervention — Edexcel Past Paper Questions

Discuss the likely concerns of the competition authorities regarding the proposed merger of the two companies referred to in Extract C.

3.1.2 Business Growth · 3.6.1 Government Intervention

The average UK household energy bill (gas and electric combined) rose 80% from £1 971 in 2021 to £3 549 in 2022. (Source adapted from: https://www.telegraph.co.uk/money/consumer-affairs/energy-price-cap-rise-october-2022-what-happen-household-bills/) Evaluate possible methods of government intervention to control household energy bills in the UK.

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

1.4.1 Government Intervention in Markets · 3.6.1 Government Intervention

Evaluate the microeconomic and macroeconomic effects of significant increases in the minimum wage. Refer to restaurants or other food delivery services in your answer.

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

3.5.3 Wage Determination · 3.6.1 Government Intervention

The national living wage, the minimum wage for 25-year-olds and over, is expected to rise to more than £10.50 an hour in 2024 compared with £8.72 in 2020. The wage does not apply to the UK’s self-employed and ‘gig economy’ workers. Some economists said the increase was ambitious. Business groups warned that employers in sectors such as social care could be hit hard. In large parts of the north of England the living wage has already reached two-thirds of local median earnings, said Professor Shackleton. (Source adapted from: https://www.theguardian.com/uk-news/2020/mar/11/budget-2020-national-living-wage-national-insurance) Evaluate the disadvantages of a significant increase in the national living wage on a specific labour market, such as that for social care workers.

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

3.5.3 Wage Determination · 3.6.1 Government Intervention

Evaluate the microeconomic and macroeconomic effects of increased government intervention in an industry. Refer to HCWs or another industry of your choice.

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

3.6.1 Government Intervention

Assess whether complete nationalisation of the rail industry might protect employees.

3.6.1 Government Intervention

Discuss methods of government intervention to protect consumers within the utilities markets, such as energy and telecommunications.

3.6.1 Government Intervention

With reference to Extract A, discuss the likely effectiveness of ‘measures to open up and increase competition’ in the UK energy market.

3.6.1 Government Intervention · 3.4.7 Contestability

With reference to Extract B, assess how the regulation of energy suppliers’ profits is likely to affect consumers and suppliers in the energy market.

3.6.1 Government Intervention · 3.6.2 Impact of Intervention

Examine measures the government might use to restrict the monopsony power of supermarkets.

3.6.1 Government Intervention · 3.4.6 Monopsony