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Title: Edexcel as level economics a question paper 1 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 01 Introduction to Markets and Market Failure
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 01 Introduction to Markets and Market Failure
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Edexcel as 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
Monday 13 May 2024
Morning (Time: 1 hour 30 minutes)
Paper
reference
Economics A
8EC0/01
Advanced Subsidiary
PAPER 1: Introduction to Markets and Market Failure
You do not need any other materials
...
•
in the boxes at the top of this page with your name,
• Fill
centre number and candidate number
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•
Answer all questions in Section A
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•
the questions in the spaces provided
• Answer
– there may be more space than you need
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•
marks for each question are shown in brackets
• The
– use this as a guide as to how much time to spend on each question
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Advice
Read each question carefully before you start to answer it
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Turn over
P72055A
©2024 Pearson Education Ltd
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Write your answers in the spaces provided
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If you change your mind about an
answer, put a line through the box and then mark your new answer with a cross
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Use the data to support your answers where relevant
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1 Scarcity of non‑renewable resources, such as oil, is a key reason why alternative
resources have been developed by economies
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(a) With reference to the information provided, explain the distinction between
renewable and non‑renewable resources
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(b) Which one of the following best describes ‘scarcity’?
(1)
A
An extension of the demand curve
B
Excess supply
C
Insufficient resources to satisfy wants
D
The misallocation of resources
(Total for Question 1 = 4 marks)
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3
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(a) Define the term ‘supply
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In which one of the diagrams does the movement from X to Y
illustrate the most likely impact on Madagascar’s economy of a natural disaster
such as a cyclone?
A
Output of
consumer
goods
(1)
B
Output of
consumer
goods
Y
Y
X
X
0
Output of capital goods
Output of
consumer
goods
X
0
4
0
Output of capital goods
C
D
Output of
consumer
goods
Y
Output of capital goods
Y
0
X
Output of capital goods
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2 Vanilla bean prices increased to a record $600 a kilogramme in 2018 after a cyclone
hit the tropical island of Madagascar, damaging crops
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(c) Annotate the diagram below to show the effect of the cyclone on the price of
vanilla beans
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(b) Singapore’s education system is provided by the state
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(3)
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6
Statement 2
Other countries ought to set school class sizes similar to Finland
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oph
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(b) With reference to the information above, explain what is meant by
‘opportunity cost’
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It has been forecast that the price cut will lead to a 15% increase in
demand
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You are advised to show your working
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(1)
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(c) Which one of the following is most likely to be a determinant of price elasticity of
demand for the Model 3 electric vehicle?
(1)
A
Availability of substitute electric vehicles
B Change in population size
C Increase in the cost of steel
D
Number of unsold Model 3 electric vehicles
(Total for Question 5 = 4 marks)
TOTAL FOR SECTION A = 20 MARKS
10
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(Source adapted from: https://www
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5 Chief Executive Elon Musk said “affordability” was the biggest barrier to Tesla reaching
a far larger market
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We found that
even small changes in price have a big impact on demand
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11
Answer ALL Questions 6(a) to 6(e) and EITHER Question 6(f) OR Question 6(g)
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Question 6
The market for plastic in the UK
Figure 1: Trend in the purchase of single‑use plastic bags in millions, UK, 2014 to 2021
2014
2015
2016
2017
2018
2019
2020
2021
7 500
2 120
1 750
1 130
1 040
627
496
197
Extract A
10p charge continues to reduce use of plastic carrier bags
The 5p charge on single‑use carrier bags was introduced in supermarkets in 2015
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The UK Environment Minister said that the plastic bag charge has ended the irrational
purchase of billions of single‑use carrier bags, thereby protecting our landscapes and
ensuring millions of pounds are redistributed to worthy causes
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Consumers are now in the habit of bringing reusable carrier bags when shopping
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These provide
incentives to consumers to reuse their plastic containers
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With the average household income falling by
4
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5
10
15
(Source adapted from: https://www
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co
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SECTION B
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Extract B
Plastic packaging tax
Food manufacturers have criticised the implementation of a new UK environmental tax,
warning it will force them to increase prices for consumers
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Businesses manufacturing or importing 10 tonnes or more a year of
plastic packaging that contains less than 30% recycled plastic are taxed at £200 a tonne
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Helene Roberts, Chief Executive of Robinson Packaging, said increased prices for the
consumer would be an unintended consequence of the tax
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” A wide range of
businesses are affected by the new tax, including retailers importing items such as bin
liners, drink bottles and carrier bags
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5
10
(Source adapted from: https://www
...
com)
Extract C
Single‑use cups
An estimated 2
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Research has found that while a 25p charge on single‑use cups increases the use of
reusable coffee cups in coffee shops, a discount on reusable coffee cups has no impact at
all on their use
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4%
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3%
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5% whereas the distribution of free reusable cups leads to a further increase of 4
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5
10
“While the increases for individual measures were modest, the greatest behavioural
change was when the measures were combined,” said Wouter Poortinga of
Cardiff University
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theguardian
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(c) With reference to Extract A, explain the likely numerical value for the income
elasticity of demand for reusable cleaning products
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(e) Discuss the likely private costs and external costs of the production of plastic
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Use a diagram to
support your answer
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your answer
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6 (a) Explain what is meant by the ‘unintended consequence’ (Extract B, line 9) of the
plastic tax
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17
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(c) With reference to Extract A, explain the likely numerical value for the income
elasticity of demand for reusable cleaning products
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18
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(4)
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(d) With reference to Extract C, explain how incentives to use reusable coffee cups
may lead to a fall in demand for single‑use cups
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Examiners must mark the last
candidate in exactly the same way as they mark the first
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Candidates must be rewarded for
what they have shown they can do rather than be penalised for omissions
...
•
All the marks on the mark scheme are designed to be awarded
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e
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Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the mark scheme
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When examiners are in doubt regarding the application of the mark scheme to a
candidate’s response, a senior examiner must be consulted before a mark is
given
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Summer 2024
Question Paper Log Number 72055
Publications Code 8EC0_01_2406_MS
All the material in this publication is copyright
© Pearson Education Ltd 2024
Question
Number
1(a)
Answer
Mark
Knowledge 1, Application 1, Analysis 1
Explain the distinction between renewable and non-renewable
resources
Knowledge/Analysis
•
•
Renewable resources e
...
can naturally replenish
themselves / will not run out(1)
Non-renewables e
...
are limited in supply / cannot
be used sustainably (1)
Application 1
(3)
Oil and/or wind power – must be linked to either
renewable or renewable source (1)
Question
Number
1(b)
Answer
Mark
Knowledge 1
The only correct answer is C
A Is not correct as scarcity not moving along a demand curve
B Is not correct as supply does not exceed demand when an item is
scarce
D Is not correct, there are too few resources to be allocated
(1)
Question
Number
2(a)
Answer
Mark
Knowledge 1
Knowledge/ Understanding
1 mark for e
...
•
•
•
Question
Number
2(b)
willingness and ability of producers to create goods
and services to take them to market
the amount of a good that can be produced by a
business
the quantity of a good or service that a firm is willing
to sell at a given price – over a given time period
Answer
(1)
Mark
Knowledge 1
The only correct answer is D
A – is not correct, as it is an unobtainable level of
resources
B – is not correct as shows a movement along the PPF
curve, increasing the level of consumer goods
C – is not correct as displays a shift out of the PPF curve
illustrating increased productive potential/ resources
(1)
Question
Number
2(c)
Answer
Knowledge 1 Application 1
Application 2 marks for e
...
• New supply curve drawn and labelled, showing an
inwards/leftwards shift (1)
• New equilibria labelled, showing a rise in price (1)
(c)
Mark
(2)
Question
Number
3(a)
Answer
Mark
Knowledge 1
The only correct answer is B
A Is not correct as Karl Marx thinks free market economies
result in exploitation of workers
...
In a fiercely
competitive market it has been forecast this will lead to
a 15% increase in demand by June 2024
Initial cost £42,990
Reduction in price £4,200
New price £38,790
Knowledge
%change in QD/%change in price = PED (1)
or
%change in price = difference/original x100
Change in price = 9
...
76) (1)
Application
15/-9
...
54
Allow 1
...
54 range
Award full (2) marks (K+APP) if within this range, allow
positive or negative PED for 2 marks
Mark
(2)
Question
Number
5(b)
Answer
Mark
Knowledge 1
Knowledge/ Understanding
1 mark for definition e
...
‘All other things being equal’
(1)
Question
Number
5(c)
Answer
Mark
Knowledge 1
The only correct answer is A
B is incorrect as population size will increase the market size and,
most likely, overall demand but would shift not affecting PED
C is incorrect as this is a determinant of supply and not PED
D is incorrect as unsold vehicles / spare stock/ capacity would
affect PES and not PED
(1)
Question
Number
6(a)
Answer
Mark
Knowledge 1, Application 2, Analysis 2
Knowledge
Distortion of consumer or producer behaviour due to the
impact of an economic decision (1)
Application
2 marks for using source data from extract such as;
• 30% tax/ £200 per tonne tax on plastics (1)
• ‘Was ‘designed to provide incentives to business to
recycle’ (1)
• ‘Inflationary pressures within the supply chain’ (1)
• Food manufacturers are particularly impacted as ‘use
40% of packaging within the UK’ (1)
Analysis
Reference to relevant unintended consequences;
•
•
•
•
•
More products brought pre-wrapped in plastic to
avoid need for the plastic bag (1)
Use of thinner plastic which increases food waste (1)
Purchasing of products online increases co2 impact
(1)
Due to the incidence of the tax, falling on consumers
(1) it may have a regressive impact (1) upon the
lowest incomes
...
Displays isolated or imprecise knowledge and understanding of
terms, concepts, theories and models
...
Descriptive approach which has no link 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
...
Demonstrates accurate knowledge and understanding of the
concepts, principles and models
...
Economic ideas are applied appropriately to the broad elements of
the question
...
Level 1
1–2
Identification of generic evaluative comments without
supporting evidence/ reference to context
...
Level 2
3–4
Evaluative comments supported by chains of reasoning and
appropriate reference to context
...
Question
Number
6(c)
Indicative content
Mark
Knowledge 2, Application 2
Knowledge 2
Reference to value for reusable cleaning products to be + /
coefficient higher than (0 or positive) (1)
Reference to type of good (normal/ luxury) (1)
Application 2
•
•
Reference to extract – consumers demand will be
income elastic as incomes are falling (1)
Retailers have suggested that most customers do not
wish to pay more for cleaning products in reusable
packaging (1) With the average household income
falling by 4
...
35 x 100 = 35% (1)
•
YED = -35/-4
...
14 (1 APP + 1APP)
•
If correct YED coefficient of between 8
...
14 given
only with no explanation - award 2 APP, 2 marks
maximum
(4)
Question
Number
6(d)
Answer
Mark
Knowledge 2, Application 2, Analysis 2
Knowledge/understanding 2
Explanation of role/ relationship between the two products
and how are substitutes (1) and that they have a positive
XED (1)
Application 2
Reference to information from extract involving;
environmental messaging/ litter posters/ 25p charge
i
...
Environmental messaging in cafes, for example posters
about litter (1), increases the use of reusable coffee cups by
2
...
5%
(1) whereas the distribution of free reusable cups leads to a
further increase of 4
...
g
...
Consequently leading to DWL and over production of plastics
beyond the social equilibrium of MSC=MSB
Extract C – 25,000 tonnes of waste from single use cups /
coffee from chains and cafes
NB Level 3 responses must consider both private and
external costs of the production of plastic
(9)
Level
Level 1
Mark
0
1–3
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; 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
...
Identification of generic evaluative comments without
supporting evidence/reference to context
...
Evidence of evaluation of alternative approaches which is
unbalanced leading to unsubstantiated judgements
...
Evaluative comments supported by relevant reasoning and
appropriate reference to context
...
Question
Number
6(f)
Indicative content
Mark
Knowledge 4, Application 4, Analysis 6
Impacts of tax introduced for plastic food packaging
including the following;
•
•
•
•
•
•
•
Increased price of food
Reduced consumer surplus
Incentives for producers to use recycled
packaging
Further tax revenue to the government which
could be hypothecated to mitigate
externalities e
...
Level 1
1–3
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
7–10
Demonstrates accurate knowledge and understanding of the
concepts, principles and models
...
Analysis is clear and coherent, although it may lack balance
...
Level 4
11–14
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
...
Identification of generic evaluative comments without
supporting evidence/reference to context
...
Evidence of evaluation of alternative approaches which is
unbalanced leading to unsubstantiated judgements
...
Level 3
Question
Number
6(g)
5–6
Evaluative comments supported by relevant reasoning and
appropriate reference to context
...
Indicative content
Mark
Knowledge 4, Application 4, Analysis 6
Policy options may include;
•
•
•
•
•
•
Subsidies for alternatives and highlighting decreases in
prices for such goods – leading to incentives for firms
to undertake research into alternatives and reduce the
market failure associate with excess production/
consumption
Information
provision
–
solving
asymmetric
information failure by informing consumers and
producers of the market failure caused by plastic
waste
Further taxation on the consumption or production of
plastic & hypothecation of this tax revenue to fund
alternative(s)
Bans on plastic packaging – highlight impact of
prohibition, leading to removal of specific plastics used
in different areas
Minimum price for plastic to be used by firms – which
would act as a disincentive for firms to incorporate
within their production
Regulation of use and need for additional recycling –
the development of increased recycling of plastic waste
would limit the externalities associated and ensure
lower levels of market failure
(14)
NB If there is no valid diagram, max Level 3
Knowledge, application and analysis
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 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
...
Indicative content
Mark
Evaluation 6
Why the interventions given may or may not be successful
in reducing market failure
e
...
• Incidence of the tax/ Price elasticity of demand of the
product associated with the plastic waste
•
Distortion of price signals – i
...
through minimum price
implementation
• Unintended consequences, other implications
• Excessive administrative costs
• Information gaps – not estimating the market failure/
external costs effectively enough
• Government failure to provide sufficient subsidies – or to
set too high/ low and may not lead to an optimal allocation
of resources
• Relative benefits/costs of government intervention versus
market based solutions or other comparisons or
interventions
...
Identification of generic evaluative comments without
supporting evidence/reference to context
...
Evidence of evaluation of alternative approaches which is
unbalanced leading to unsubstantiated judgements
...
Evaluative comments supported by relevant reasoning and
appropriate reference to context
...
Title: Edexcel as level economics a question paper 1 june 2024 + mark scheme
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 01 Introduction to Markets and Market Failure
Description: Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 01 Introduction to Markets and Market Failure