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Title: Edexcel a level economics b question paper 3 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE In Economics B (9EB0) Paper 03: The Economic Environment and Business
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE In Economics B (9EB0) Paper 03: The Economic Environment and Business
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Edexcel a level
economics b question
paper 3 june 2024 +
mark scheme
Please check the examination details below before entering your candidate information
Candidate surname
Centre Number
Other names
Candidate Number
Pearson Edexcel Level 3 GCE
Friday 7 June 2024
Morning (Time: 2 hours)
Paper
reference
Economics B
9EB0/03
Advanced
PAPER 3: The economic environment and business
You must have:
Insert (enclosed)
Total Marks
Instructions
Use black ink or ball-point pen
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Answer all questions
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Information
The total mark for this paper is 100
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• Calculators may be used
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•
Try to answer every question
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Turn over
P75862A
©2024 Pearson Education Ltd
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Write your answers in the spaces provided
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This increased the factory’s
output capacity to 88,000 electric vehicles (EVs) per month
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5
(Source: adapted from: https://www
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co
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html)
Extract B
Risk of Global Recession in 2023
According to a study by the World Bank, the world may be moving toward a global
recession in 2023
...
The global economy is now in its steepest slowdown since 1970
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The world’s three largest economies – the United States, China and the
euro area – have all been slowing sharply
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worldbank
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This will include
increased pay, benefits and training
...
All new baristas and new shift supervisors
will have their training time doubled and training programmes will be enhanced
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5
Starbucks’ Chief Financial Officer, Rachel Ruggeri said: “We are confident the investments
we are making in our employees, will deliver significant returns, resulting in accelerated
long‑term growth
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hcamag
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Extract D
Super Mario and the return of supply‑side economics
When Mario Draghi, the previous Prime Minister of Italy, took office in 2021 he made
clear that supply‑side policies were his priority for Italy
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5
These supply‑side policies were very different from the demand‑side policies that
had been launched in the previous year to keep economies afloat during the global
health crisis
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*P75862A0528*
5
(b) Assess whether investment in the labour force is the best way for a firm to
increase productivity
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*P75862A0928*
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(d) Using a suitable diagram, evaluate the importance of supply‑side policies in
promoting economic growth
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Extract E
Furniture firm Moko raises 786
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It has raised KES 786
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5m) in venture capital to expand
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Some of the venture capital
will be invested in new machinery and in expanding its product range
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The demand
for furniture across the continent is expected to grow, driven by population growth,
urbanisation and increasing purchasing power
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capitalfm
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ke/business/2022/10/furniture-firm-mokoraises-sh786-6-million-to-expand-business-line/)
Extract F
Contribution of agriculture to the Kenyan economy
80
Importance of Agriculture to Kenyan economy
70%
60
percentage
40
(%)
20
0
33%
27%
65%
40%
Indirect
Direct
Employment Employment
contribution contribution
overall
in rural areas
to
GDP
to GDP
Export
earnings
In 2020, Kenya’s total exports were $6
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Of these the largest were tea ($1
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(Source: adapted from: https://www
...
org/kenya/fao-in-kenya/kenya-at-a-glance/en/ and
https://oec
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SECTION B
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Extract G
Kenyan shilling (KES) drops to a new historic low of 120 against the US Dollar
The Kenyan shilling dropped to a new low in August 2022, at 119
...
This was the 16th month in a row that the shilling has depreciated against the dollar
...
This will further push up the
household cost of living as importers pass their increased costs onto consumers
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businessinsider
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Out of the 55 African countries, 54 have signed the agreement, the exception being
Eritrea
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5
Over time, they have pledged to eliminate import tariffs on 97% of goods traded
between African countries
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African countries currently trade more internationally than with each other
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10
(Source: adapted from https://allafrica
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html)
*P75862A01528*
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2 (a) Discuss the use of venture capital as a source of finance for a firm such as Moko
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(c) Assess how the depreciation of the shilling may affect Kenyan firms such as Moko
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*P75862A02328*
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(Total for Question 2 = 50 marks)
TOTAL FOR SECTION B = 50 MARKS
TOTAL FOR PAPER = 100 MARKS
24
*P75862A02428*
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Pearson Edexcel Level 3 GCE
Friday 7 June 2024
Morning (Time: 2 hours)
Paper
reference
Economics B
9EB0/03
Advanced
PAPER 3: The economic environment and business
Do not return this Booklet with the question paper
...
F:1/1/1/1/1/
*P75862A*
Investigating the Economic Environment and Business
Context
This year the context is expansion and the growth of firms and economies
...
You cannot take any of your research or investigation data carried out as part of the
pre‑release into the examination
...
We provide
a wide range of qualifications including academic, vocational, occupational and specific programmes
for employers
...
edexcel
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Pearson: helping people progress, everywhere
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We believe in every kind of learning, for all kinds of people, wherever
they are in the world
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Find out more about how we
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Summer 2024
Question Paper Log P75862A
Publications Code 9EB0_03_2406_MS*
All the material in this publication is copyright
© Pearson Education Ltd 2024
General Marking Guidance
•
All candidates must receive the same treatment
...
•
Mark schemes should be applied positively
...
•
Examiners should mark according to the mark scheme not
according to their perception of where the grade boundaries
may lie
...
All marks on the mark
scheme should be used appropriately
...
Examiners should always award full marks if deserved, i
...
if
the answer matches the mark scheme
...
•
Where some judgement is required, mark schemes will
provide the principles by which marks will be awarded and
exemplification may be limited
...
•
Crossed out work should be marked UNLESS the candidate has
replaced it with an alternative response
...
Mark
Indicative content
Knowledge/understanding 2, Application 2,
Analysis 2, Evaluation 2
•
•
•
•
•
•
•
•
•
•
•
September’s figure of 83,135 EVs is near the
capacity of the factory which is 88,000
Tesla’s capacity utilisation is therefore
83,135 x 100
88,000
= 94
...
47%)
For Tesla the nearer it gets to 100% capacity
utilisation the more efficient the factory becomes
as all resources are being used and average costs
should reduce
Under-utilisation of 5
...
Isolated elements of knowledge and understanding, using
little or no relevant evidence
...
Limited attempt to address
the question
...
Arguments and chains of reasoning are
developed
...
Accurate knowledge and understanding, supported
throughout by use of relevant evidence which is well
chosen
...
A balanced awareness of competing
arguments
...
Where questions do not specifically stipulate the use of data or information
provided in a stimulus, students:
• must select relevant examples from their own knowledge, these must be
directly connected to the context/issues set out in the question, and
• may directly reference, interpret or analyse the information provided in
any relevant stimulus
...
1 (b)
Indicative content
Knowledge/Understanding 2, Application 2,
Analysis 3, Evaluation 3
•
•
•
•
•
•
•
•
•
•
•
•
•
Increasing productivity will lead to greater output
per unit in a given time
This will lower average costs and give firms a
competitive advantage
By investing $1bn in the wellbeing of its workforce
Starbucks believes that it will result in ‘long term
growth’
Higher wages and improved benefits may attract
more motivated employees
Employees who are more contented will reduce
employee turnover
In turn this will reduce the cost of recruiting and
training employees thus lowering costs and
increasing competitiveness
Better training may increase efficiency and give
consumers a better experience
For a consumer-oriented business such as
Starbucks it makes sense to focus on their
workforce in order to increase productivity and
enhance their competitiveness
However, not all firms rely on their labour force to
such a great extent, some are capital intensive such
as Tesla
They have a greater reliance on machines and
physical equipment
In order to be competitive and grow they have to
take advantage of the latest advances in technology
It may be more beneficial to invest in capital
equipment rather than labour, particularly if
production is fully automated and the labour force is
small
Many businesses will need to find a balance
between investing in labour or capital depending on
their needs and the nature of their business
Mark
(10)
Level
Level 1
Mark
0
1–2
Level 2
3–4
Level 3
5-7
Level 4
8-10
Descriptor
A completely inaccurate response
...
Arguments and
chains of reasoning may be attempted
...
Elements of knowledge and understanding, using limited
relevant evidence
...
Comparisons and judgements may be
attempted
...
An
awareness of the significance of competing arguments is
present although this may lack balance
...
Arguments are
developed and evaluated
...
Demonstrating application (AO2) in responses
Where questions specifically stipulate the use of data or information provided in
a stimulus, students:
• must directly reference, interpret or analyse the information provided in
the stimulus
• in addition, may select examples from their own knowledge but these
must be relevant and directly connected to the context/issues set out in
the stimulus
...
Question
Number
1(c)
Assess whether a firm should expand during a recession
...
Isolated elements of knowledge and understanding, using
little or no relevant evidence
...
Limited attempt to address the
question
...
Arguments and chains of reasoning are
presented but with limited attempt to address the question
...
Accurate knowledge and understanding, supported by use of
relevant evidence to support the argument, clear chains of
reasoning, with well-developed arguments
...
Accurate knowledge and understanding, supported
throughout by use of relevant evidence which is well chosen,
logical, coherent chains of reasoning, showing full
understanding of the question
...
A full and balanced awareness of the validity and
significance of competing arguments
...
Where questions do not specifically stipulate the use of data or information
provided in a stimulus, students:
• must select relevant examples from their own knowledge, these must be
directly connected to the context/issues set out in the question, and
• may directly reference, interpret or analyse the information provided in
any relevant stimulus
...
1(d)
Indicative content
Knowledge/Understanding 4, Application 4,
Analysis 6, Evaluation 6
•
•
•
•
•
•
•
•
•
•
OR
Economic growth relies on an increase in output of
either goods or services
Supply-side policies are designed to increase the
productive capacity of the economy
By increasing the amount of goods/services that
can be made using existing factors of production the
economy expands and grows
Italy intends to use a mix of interventionist and
market-based policies to improve its growth rate
Interventionist policies are focused on more training
and education, the digital economy and
infrastructure, which will help the workforce to be
more productive and the economy to be more
efficient
Market based policies such as reforming the tax,
legal and administrative areas are designed to
reduce market imperfections and allow businesses
to operate more freely and efficiently
These combined policies should help the economy
to grow as shown below…
At Y1 the economy was operating at full capacity
...
This causes an
increase in real GDP (Y1 to Y2) and a reduction in the
price level (P1 to P2)
The economy is able to expand and grow
However, these policies require both time and
investment to implement
Training and education may take years before
benefits appear in the workplace and economy
Infrastructure projects take time and have an
opportunity cost in terms of government support
which may be more effectively used elsewhere
Government spending on supply-side policies may
mean reductions in spending in other areas
Interventionist policies may have unintended
consequences, for example, tax reforms may create
incentives for firms to invest but reduce tax
revenues to fund infrastructure projects
Other measures such as expansionary fiscal policies
may have a more immediate effect on economic
growth
The best thing may be for an economy to use a
mixture of demand side and supply side policies
Level
Level 1
Mark
0
1–4
Level 2
5-9
Level 3
10-15
Level 4
16-20
Descriptor
A completely inaccurate response
...
Arguments and chains of
reasoning may be attempted, but fail to connect causes and
consequences
...
Elements of knowledge and understanding, using limited
relevant evidence
...
Limited attempt to address the
question
...
Accurate knowledge and understanding, supported by use of
relevant evidence to support the argument, developed chains
of reasoning, showing understanding of connections between
causes and consequences
...
A conclusion may be attempted but may not show
awareness of the significance of competing arguments
...
Arguments are fully
developed and evaluated
...
Demonstrating application (AO2) in responses
Where questions specifically stipulate the use of data or information provided in
a stimulus, students:
• must directly reference, interpret or analyse the information provided in
the stimulus
• in addition, may select examples from their own knowledge but these
must be relevant and directly connected to the context/issues set out in
the stimulus
...
Question
Number
Discuss the use of venture capital as a source of finance for a
firm such as Moko
...
6m immediately with no
need to start repayments or pay interest which it
would have to do on other forms of finance such as
a loan
The owners of Moko will not need to pledge any
assets as security
However, there are some disadvantages to using
venture capital
The owners of Moko will have to give up some
control of the business and this may cause conflict
as the venture capitalists demand a say in how the
business is run
It can be expensive to repay if the business
expands and becomes more valuable and the
proportionate equity stake has also risen in value
(8)
Level
Level 1
Mark
0
1–2
Descriptor
A completely inaccurate response
...
Arguments and chains of reasoning
may be attempted
...
Level 2
3–5
Level 3
6–8
Elements of knowledge and understanding, using limited
relevant evidence
...
Judgements may be attempted
...
Arguments
are developed, using logical, coherent chains of reasoning
...
Demonstrating application (AO2) in responses
Where questions specifically stipulate the use of data or information provided in
a stimulus, students:
• must directly reference, interpret or analyse the information provided in
the stimulus
• in addition, may select examples from their own knowledge but these
must be relevant and directly connected to the context/issues set out in
the stimulus
...
Question
Number
Assess the possible economic impact of specialisation in
agriculture for a country such as Kenya
...
24bn
Specialisation leads to increased productivity and
output; economies of scale may be gained as more
resources are devoted to specialisation rather than
spread out over many areas
Output rises and leads to economic growth, which
benefits other firms in Kenya
Agriculture provides a living for a large number of
people
...
Should demand
fall for Kenyan agricultural products, it could have a
serious impact on the Kenyan economy
Unemployment would rise with repercussions for other
businesses and the economic wellbeing of Kenya itself
Mark
(10)
Level
Level 1
Mark
0
1–2
Level 2
3–4
Level 3
5-7
Level 4
8-10
Descriptor
A completely inaccurate response
...
Arguments and chains of
reasoning may be attempted
...
Elements of knowledge and understanding, using limited
relevant evidence
...
Comparisons and judgements may be attempted
...
An awareness of
the significance of competing arguments is present although
this may lack balance
...
Arguments are developed and
evaluated
...
Demonstrating application (AO2) in responses
Where questions specifically stipulate the use of data or information provided in
a stimulus, students:
• must directly reference, interpret or analyse the information provided in
the stimulus
• in addition, may select examples from their own knowledge but these
must be relevant and directly connected to the context/issues set out in
the stimulus
...
Question
Number
Assess how the depreciation of the shilling may affect Kenyan
firms such as Moko
...
Isolated elements of knowledge and understanding, using
little or no relevant evidence
...
Limited attempt to address the
question
...
Arguments and chains of reasoning are
presented but with limited attempt to address the question
...
Accurate knowledge and understanding, supported by use of
relevant evidence to support the argument, clear chains of
reasoning, with well-developed arguments
...
Accurate knowledge and understanding, supported
throughout by use of relevant evidence which is well chosen,
logical, coherent chains of reasoning, showing full
understanding of the question
...
A full and balanced awareness of the validity and
significance of competing arguments
...
Where questions do not specifically stipulate the use of data or information
provided in a stimulus, students:
• must select relevant examples from their own knowledge, these must be
directly connected to the context/issues set out in the question, and
• may directly reference, interpret or analyse the information provided in
any relevant stimulus
...
2(d)
Indicative content
Knowledge/understanding 4, Application 4,
Analysis 6, Evaluation 6
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
AfCFTA aims to eliminate 97% of all tariffs on
trade between African countries
Kenya will face fewer trade barriers for its exports
making it easier for firms such as Moko to expand
into other African countries
The agreement should make trading between
African countries cheaper and easier, therefore
increasing the amount of trade that takes place
between them
At the moment this is low and is just 17% of their
exports
...
This
Mark
(20)
has happened in all trading blocs including the EU
and NAFTA
Level
Level 1
Mark
0
1–4
Level 2
5-9
Level 3
10-15
Level 4
16-20
Descriptor
A completely inaccurate response
...
Arguments and chains of
reasoning may be attempted, but fail to connect causes and
consequences
...
Elements of knowledge and understanding, using limited
relevant evidence
...
Limited attempt to address the
question
...
Accurate knowledge and understanding, supported by use of
relevant evidence to support the argument, developed chains
of reasoning, showing understanding of connections between
causes and consequences
...
A conclusion may be attempted but may not show
awareness of the significance of competing arguments
...
Arguments are fully
developed and evaluated
...
Demonstrating application (AO2) in responses
Where questions specifically stipulate the use of data or information provided in
a stimulus, students:
• must directly reference, interpret or analyse the information provided in
the stimulus
• in addition, may select examples from their own knowledge but these
must be relevant and directly connected to the context/issues set out in
the stimulus
...
Pearson Education Limited
Title: Edexcel a level economics b question paper 3 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE In Economics B (9EB0) Paper 03: The Economic Environment and Business
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE In Economics B (9EB0) Paper 03: The Economic Environment and Business