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Title: Edexcel a level economics a question paper 1 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Economics A (9EC0) Paper 01 Market and Business Behaviour
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Economics A (9EC0) Paper 01 Market and Business Behaviour
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Edexcel a level
economics a question
paper 1 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
Wednesday 15 May 2024
Morning (Time: 2 hours)
Economics A
Paper
reference
9EC0/01
Advanced
PAPER 1: Markets and business behaviour
You must have a calculator
...
• Use
Fill
in
the boxes at the top of this page with your name, centre number
• and candidate
number
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Answer all questions from
• There
Section A and Section B
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the questions in the spaces provided
• Answer
– there may be more space than you need
...
Information
total mark for this paper is 100
...
Advice
each question carefully before you start to answer it
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• Checkanswer
• your answers if you have time at the end
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F:1/1/1/1/1/1/1/1/1
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Some questions must be answered with a cross in a box
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You are advised to spend 30 minutes on this section
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You may annotate and include diagrams in your answers
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7
Adult
−0
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publishing
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gov
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and https://tfl
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uk/fares/find-fares/bus-and-tram-fares#on-this-page-4)
(a) Explain one likely reason for the difference in the price elasticity of demand for the
18+ student bus ticket and the adult bus ticket
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SECTION A
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(b) In 2021, the adult 7-day bus ticket was £21
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Bus ticket prices in London in 2022
increased by 4
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Ceteris paribus, which one of the following is the percentage
decrease in the 7-day bus ticket demand by adults?
(1)
A
0
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92
C
3
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Price elasticity of supply
New York
+0
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8
(Source adapted from: https://bankunderground
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uk/2020/02/25/
the-declining-elasticity-of-us-housing-supply/)
(a) With reference to the data above, explain one likely reason for the difference in
the price elasticity of supply
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(b) In Texas the price elasticity of supply is +1
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Which one of the following is the percentage increase in price if the quantity of
housing supplied in Texas is increased by 12%?
(1)
A
0
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50
C
6
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(Source adapted from: https://www
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com/sites/shelleykohan/2022/01/26/
peloton-prioritizes-access-and-acquisition-over-profits/?sh=13d8ee474f40 )
(a) Draw a cost and revenue diagram to illustrate the different business objectives:
profit maximisation and revenue maximisation
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Peloton’s objective is to prioritise selling
fitness services rather than to achieve short-term profit maximisation
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(Source adapted from: https://questions-statements
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uk/
written-statements/detail/2021-10-21/HCWS339)
(a) Explain one likely reason for the maximum price for an undergraduate
university programme
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(b) Which one of the following is an example of government failure associated with
the maximum price?
(1)
A
Contraction in demand
B
Distortion of price signals
C
Excess supply
D
Extension in supply
(Total for Question 4 = 5 marks)
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24
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5%
15
12
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1% 10
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8%
7
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9%
r
Ot
he
HS
Vi
BC
rg
in
M
on
ey
t
Ba
rc
la
ys
es
Na
rU
de
an
nt
tw
K
e
id
nw
Sa
Na
tio
Llo
yd
s
0
(Source adapted from: https://www
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com/statistics/727348/
uk-banks-gross-lending-market-share/)
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5 The graph below shows the largest mortgage lenders in the United Kingdom (UK) in
2020, by market share
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(4)
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(b) The value of all mortgage loans was £1 601 billion at the end of 2020
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You are advised to spend 1 hour on this section
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Makers of electronic devices
face significant increases in the price of computer chips as they try to source enough
components, including games consoles, computers and smartphones
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20 each to more than $1
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5
(Source: adapted from https://www
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com/content/8c718a74cd95-4b2d-ac0e-de0682e4e3cd)
Extract B
Labour shortages in the electronics industry
Every year, highly skilled and experienced employees in the electronics industry
retire
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As production becomes
more automated, electronics jobs are more likely to require problem solving and
analysis than just assembling skills
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In addition, by giving hazardous,
repetitive, grimy work to robots, human beings can focus on more creative,
analytic tasks
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ericsson
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SECTION B
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Extract C
Serious concerns over merger
The Competition and Markets Authority (CMA) has said the takeover of the Cambridgebased computer chip designer Arm by its US rival Nvidia raises serious competition
concerns
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5 billion deal
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In addition,
severe global shortages of computer chips has disrupted the manufacture of a range of
electronic goods pushing up costs for firms
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5
10
(Source adapted from: https://www
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com/
business/2021/aug/20/watchdog-expresses-concernsover-nvidias-takeover-of-uk-chip-designer-arm )
Extract D
The growing problem of electronic waste
Electronic waste is the fastest growing element of the world’s household waste problem
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The country produces 24
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In 2018, 1
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Some appliances
are more likely to be recycled than others
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Of small appliances, barely one in five makes it to the
recycling centre
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This causes many problems, such as
hazardous substances contaminating soil, water pollution and other external costs
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In some countries,
for example, household rubbish is weighed and recycling initiatives are subsidised
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ft
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(d) Discuss the likely concerns of the competition authorities regarding the proposed
merger of the two companies referred to in Extract C
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(5)
(8)
(10)
(12)
(e) With reference to Extract D, discuss possible methods of government intervention
to reduce electronic waste
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Include a supply and demand diagram in your answer
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Include a supply and demand diagram in your answer
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(e) With reference to Extract D, discuss possible methods of government intervention
to reduce electronic waste
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Write your answer in the space provided
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EITHER
7 A small hotel in Scarborough has seen its energy bills increase from £2 000 to £8 000
per month
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(Source adapted from: https://www
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com/content/d07797e72eb7-4240-b15d-692b39510def )
Evaluate the microeconomic effects of rising energy bills on the hotel industry or an
industry of your choice
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The Beijing-based social media giant has already entered the food and drink markets
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businessoffashion
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(Total for Question 8 = 25 marks)
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SECTION C
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Indicate which question you are answering by marking a cross in the box
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Chosen question number: Question 7
Question 8
Write your answer here:
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TOTAL FOR SECTION C = 25 MARKS
TOTAL FOR PAPER = 100 MARKS
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Summer 2024
Question Paper Log Number 73999
Publications Code 9EC0_01_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
...
g
...
g
...
4, student PED is -0
...
g
...
B
...
4/4
...
8x0
...
8/0
...
g
...
g
...
5), price inelastic supply (1)
OR
• Texas (PES 1
...
g
...
B
...
8/12 is an incorrect use of the
formula
B
is not correct because 1
...
2 is an incorrect use of
the formula
D is not correct because 1
...
g
...
g
...
g
...
5%) (1)
Two marks for a correct calculation of the
concentration ratio:
Two firm
32
...
3%
Four firm
54
...
2
Seven firm
75
...
5
B
is not correct because they have selected the wrong
market share thus calculating 1601/12
...
195
Question
Number
Answer
(1)
Mark
6(a)
Knowledge 1, Application 1, Analysis 3
Knowledge and Analysis: (up to 4 marks)
Correctly labelled diagram annotated to show a shift left
in supply curve and right in demand curve (1+1) e
...
NB two KAA marks are reserved for an accurate
diagram: 1 mark for shifting demand, one for shifting
supply
...
e
...
g
...
g
...
20 each to
more than $1 (1)
• ‘Growing popularity of home entertainment’ or
increase in demand for game consoles (1)
(5)
Question
Number
Answer
Mark
6(b)
Knowledge 2, Analysis 2, Application 2,
Evaluation 2
Knowledge/understanding: 2 marks for identification of
two factors (1+1) e
...
Factors could affect either the position or the elasticity of the
labour supply curve
•
•
•
•
•
•
•
•
•
•
Wage rate (1)
Demographics (1)
Activity rates e
...
change in retirement age/ numbers
retiring (1)
Educational opportunities (1)
Length of training/skills (1)
Pay in other occupations (1)
Occupational mobility (1)
Geographical mobility (1)
Net migration (1)
Other non-wage factors e
...
desirability of the job,
motivational factors, home working (1)
Analysis: 1 mark for linked explanation of each factor (1+1)
e
...
• Lack of students completing engineering and
computing degrees leading to a smaller qualified
workforce (1)
• More problem solving and analysis skills required
leading to a smaller supply of labour (1)
• Lower proportion of female students studying STEM
subjects (1)
Application: 2 marks for reference to the electronics industry
e
...
• Loss of experienced/skilled employees (1)
• Few computing/engineering graduates (1)
• High skilled/automated technical industry/ requiring
problem solving skills (1)
• Hazardous, repetitive, grimy work (1)
• Electronics industry compared to another e
...
finance (1)
Evaluation: 2 marks for two evaluative comments, OR
2 marks for identification and linked development of
one evaluative comment e
...
• Government intervention might correct this e
...
by
changing retirement age, education/ training reforms
• Price mechanism could increase supply in the long run
providing a wage incentive
(8)
•
Financial incentives to invest in AI/new technologies can
help fill some of the skills gap
AI reduces health risks of job
•
AI increases analytical/creative skills needed
•
Combination of factors affect labour supply
•
Question
Number
6(c)
Indicative content
Mark
Knowledge 2, Application 2, Analysis 2
Definition or understanding of economies of scale
Economies of scale may include:
• Purchasing economies – bulk buying computer chips
• Financial economies – accessing loans at low rates of
interest from commercial banks
• Managerial economies – Arm and Nvidia removing
middle managers; greater specialisation and division
of labour
• Technical economies – greater investment in R&D and
innovation, larger warehouses etc
...
• External economies – information sharing on selling
products into emerging markets
Removing wasteful duplication e
...
research into AI
advances in games consoles, data centres and smartphones
NB A diagram may be used to illustrate economies of
scale/diseconomies of scale
(6)
NB For KAA level 3, candidates should refer to
electronics industry
Level
Mark
0
Descriptor
A completely inaccurate response
...
Use of generic or irrelevant information or examples
...
Displays elements of knowledge and understanding of
economic principles, concepts and theories
...
A narrow response or the answer may lack balance
...
Ability to link knowledge and understanding in context using
relevant and focused examples which are fully integrated
...
Indicative content
6(c)
continued
Evaluation 4
Diseconomies of scale and types – communication,
coordination issues
Buyer has some monopsony power over electronics
firms
Benefits may not be realised if buying from a
monopoly supplier e
...
global supply chain issues
Limited benefits from global advertising, language
and cultural barriers require adaptations
X-inefficiency for incumbent firms
Dynamic efficiency more significant than economies
of scale
Consideration of size of firms – many firms in the
industry are small-scale, so economies of scale may
not be achievable to the same extent
•
•
•
•
•
•
•
Level
Mark
(4)
Mark
Descriptor
0
No evaluative comments
...
No
evidence of a logical chain of reasoning
...
Evaluation recognises different viewpoints and/or is critical of
the evidence
...
B
...
g
...
B
...
B
...
Level 1
1–2
Displays isolated or imprecise knowledge and understanding
of terms, concepts, theories and models
...
Descriptive approach which has no chains of reasoning or
links between causes and consequences
...
Applies economic ideas and relates them to economic
problems in context, although does not focus on the broad
elements of the question
...
Level 3
6–8
Demonstrates accurate knowledge and understanding of the
concepts, principles and models
...
Economic ideas are carefully selected and applied
appropriately to economic issues and problems
...
Question
Number
Indicative content
6(d)
continued
Evaluation 4
•
•
•
•
•
•
•
•
•
Level
Mark
Economies of scale from horizontal merger - lower
prices/increased output
Improved customer service – being closer to the
consumer due to vertical integration
‘Finance high-risk innovation and global advertising’
Increased global market share/sales
Dynamic efficiency/synergy – profits reinvested into
innovation/higher quality
Investment deal of £29
...
Level 1
1–2
Identification of generic evaluative comments without
supporting evidence/reference to context
...
Level 2
3–4
Evaluative comments supported by relevant reasoning and
appropriate reference to context
...
Question
Number
Indicative content
Mark
Knowledge 3, Application 3, Analysis 3
6(e)
Government intervention to correct market failure –
negative externalities of production
Reduce overproduction – market output greater than social
optimum
Correct misallocation of resources – reduce welfare loss
Reduce external cost/third party effects
Government methods:
• Indirect tax on electronic waste (specific) or on
manufacturers of devices
• Subsidies extending longevity of electronic items/
increase recyclable content
• Provision of information/education – on electronic
waste problems on packaging
• Regulation – extending longevity of electronic items/
increasing recyclable content/fines for not recycling
• Tradable pollution permits
Reward relevant application e
...
candidates work out how
much is not being recycled (700 000 tonnes)
NB for a level 3 answer there must be at least one
reference to Extract D and two methods
(9)
NB reward relevant diagram
Level
Mark
Descriptor
0
A completely inaccurate response
...
Use of generic or irrelevant information or examples
...
Level 2
4–6
Displays elements of knowledge and understanding of
economic principles, concepts and theories
...
A narrow response; chains of reasoning are developed but
the answer may lack balance
...
Ability to link knowledge and understanding in context using
relevant and focused examples which are fully integrated
...
The answer
demonstrates logical and coherent chains of reasoning
...
g
...
g
...
g
...
Level 1
1–2
Identification of generic evaluative comments without
supporting evidence/reference to context
...
Level 2
3–4
Evidence of evaluation of alternative approaches which is
unbalanced
...
Level 3
Question
Number
5–6
Evaluative comments supported by relevant chain of
reasoning and appropriate reference to context
...
Indicative content
Mark
7
Knowledge 4, Application 4, Analysis 8,
Evaluation 9
•
•
•
•
•
•
•
•
Increase in energy bills (Fixed Cost) shifts AC upwards OR
Variable Costs increase shifting AC and MC upwards
Loss area/smaller profit connected with MC=MR
Short-term (AVC) or long-term (AC) shut down point reached
for firms in industry
Cost and Revenue/Supply and Demand analysis - higher prices
and lower output
Industry energy intensive
Cut in costs – wages/redundancies/investment/impact on
hotel guests/customers
Wider impacts on employees and suppliers
Reduction in the level of competition/contestability in the
industry as smaller firms are forced to exit
Diagram (showing fixed costs changing) e
...
•
•
Change in business objective e
...
to sales maximisation
Incentive to put in place energy saving devices, insulation,
solar panels to reduce energy use
N
...
For Level 4 response a diagram is not required
N
...
For Level 4 KAA candidates must refer to a specific
industry
Evaluation
•
•
•
Energy prices are very volatile
Energy bill as proportion of total cost
Cover AVC in short run – contribute to energy bills • Cover AC
in long run
(25)
•
Long-term changes e
...
energy price falls
•
•
Industry/market structure – monopsony power - larger
companies can negotiate better deals
Information/education campaigns to encourage customers to
reduce energy consumption e
...
reminders to turn the
heating down and turn lights off
Reward magnitude arguments e
...
the size of the increase in
energy costs
Extent to which costs can be offset by energy saving
measures/or increase in demand for hotel rooms
Government intervention to support businesses with higher
bills
Impact depends on size of the hotel e
...
Premier Inn
•
Candidates can use PED as impact on revenue
•
•
•
•
Knowledge, application and analysis
Level
Mark
Descriptor
0
A completely inaccurate response
...
Use of generic or irrelevant information or examples
...
Level 2
5–8
Displays elements of knowledge and understanding of
economic principles, concepts and theories
...
A narrow response or superficial, two stage chains of
reasoning only
...
Ability to apply economic concepts and relate them directly to
the broad elements of the question with evidence integrated
into the answer
...
Chains of reasoning are developed but the answer may lack
balance
...
Ability to link knowledge and understanding in context using
appropriate examples
...
Economic ideas are carefully selected and applied
appropriately to economic issues and problems
...
Mark
Descriptor
0
No evaluative comments
...
No evidence of a
logical chain of reasoning
...
Evaluative comments with supporting evidence/reference to
context and a partially-developed chain of reasoning
...
Evaluation recognises different viewpoints and is critical of
the evidence provided and/or the assumptions underlying the
analysis enabling informed judgements to be made
...
It is not the number of firms that is important, but the ease
with which new firms can enter the market
...
B
...
B
...
Level 1
1–4
Displays isolated or imprecise knowledge and understanding
of terms, concepts, theories and models
...
Descriptive approach which has no chains of reasoning or
links between causes and consequences
...
Applies economic ideas and relates them to economic
problems in context, although does not focus on the broad
elements of the question
...
Level 3
9–12
Demonstrates accurate knowledge and understanding of the
concepts, principles and models
...
Analysis is clear and coherent, although it may lack balance
...
Level 4
13–16
Demonstrates precise knowledge and understanding of the
concepts, principles and models
...
Analysis is relevant and focused with
evidence fully and reliably integrated
...
The answer
demonstrates logical and coherent chains of reasoning
...
Level 1
1–3
Identification of generic evaluative comments without
supporting evidence/reference to context
...
Level 2
4–6
Evidence of evaluation of alternative approaches which is
unbalanced leading to unsubstantiated judgements
...
Evaluation
Level
Level 3
7–9
Evaluative comments supported by relevant reasoning and
appropriate reference to context
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Pearson Education Limited
Title: Edexcel a level economics a question paper 1 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Economics A (9EC0) Paper 01 Market and Business Behaviour
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE A Level In Economics A (9EC0) Paper 01 Market and Business Behaviour