Pearson Edexcel International Advanced Level
Thursday 7 May 2026
WEC11/01A
Paper
Afternoon (Time: 1 hour 45 minutes)
reference
Economics
International Advanced Subsidiary
UNIT 1: Markets in action
Question Paper
Mark Scheme
You must have:
Source Booklet and Answer Book (sent separately)
(Results)
Do not return this Question Paper with the Answer Book
Summer 2026
Pearson Edexcel International Advanced Level in Economics
WEC11/01A
Unit 1: Markets in Action
Turn over
P87897APearson Education Ltd.
P:1/1/1/1/
*P87897A*
, Edexcel and BTEC Qualifications
SECTION A
Answer ALL questions in this section in the Answer Book.
1 Which one of the following is an example of government failure? Edexcel and BTEC qualifications are awarded by Pearson, the UK’s
largest awarding body. We provide a wide range of qualifications
including academic, vocational, occupational and specific
A A steel manufacturer leaving the market when responding to a decrease in price
programmes for employers. For further information visit our
B The external costs associated with pollution of a river caused by chemicals from qualifications websites at or .
a factory Alternatively, you can get in touch with us using the details on our
contact us page at
C Non-provision of public goods, such as streetlights and sea flood defences
D Unintended consequences, such as smuggling, following an increase in tax on
luxury goods
(Total for Question 1 = 1 mark)
2 In 2025 the Government of Colombia increased the tax on ultra-processed foods that Pearson: helping people progress, everywhere
are high in either salt, sugar or fat from 10% to 20%.
Pearson aspires to be the world’s leading learning company. Our aim is to help
Which one of the following is the most likely result of this increase in tax?
everyone progress in their lives through education. We believe in every kind of
learning, for all kinds of people, wherever they are in the world. We’ve been involved
A There will be a parallel shift in the supply curve in education for over 150 years, and by working across 70 countries, in 100
B There will be a pivot to the left of the supply curve languages, we have built an international reputation for our commitment to high
standards and raising achievement through innovation in education. Find out more
C The price of ultra-processed foods will decrease
about how we can help you and your students at:
D The supply of ultra-processed foods will increase
(Total for Question 2 = 1 mark)
3 In 2021 the Government of Cuba allowed individuals to set up their own businesses
for the first time. By 2024 these businesses employed 1.6 million people.
Which one of the following best describes a mixed economy?
A Where all resources are allocated by the price mechanism
B Where the government allocates all resources
C Where the government and the price mechanism allocate resources
Summer 2026
D Where resources for public goods are allocated by the price mechanism Question Paper Log Number P87897A
Publication Code WEC11_01A_2606_MS
(Total for Question 3 = 1 mark) All the material in this publication is
Pearson Education Ltd
2 P87897A
, General Marking Guidance
4 The diagram shows the market for shirts.
• All candidates must receive the same treatment. Examiners must mark the
Price per shirt first candidate in exactly the same way as they mark the last.
$
30 • Mark schemes should be applied positively. Candidates must be rewarded
for what they have shown they can do rather than penalised for omissions.
• Examiners should mark according to the mark scheme not according to
22
their perception of where the grade boundaries may lie.
• There is no ceiling on achievement. All marks on the mark scheme should be
18
used appropriately.
• All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will provide the
principles by which marks will be awarded and exemplification may be
Demand limited.
• When examiners are in doubt regarding the application of the mark scheme
Quantity to a candidate’s response, the team leader must be consulted.
(Thousands) • Crossed out work should be marked UNLESS the candidate has replaced it
The price of a shirt was originally $22. If the price is decreased to $18, which one of with an alternative response.
the following can be deduced from the diagram?
A Total revenue would increase by $480 000
B Total revenue would decrease by $480 000
C Total revenue before the price change was $1 800 000
D Total revenue after the price change was $1 320 000
(Total for Question 4 = 1 mark)
P87897A 3
Turn over
, 5 The diagram shows the supply of oranges in Spain. Section A
Question Quantitative skills assessed Answer Mark
Price per tonne S 1 QS9: Interpret, apply and The only correct answer is D
S1
analyse information in (1)
written, graphical, tabular A is not correct because this is the price
and numerical forms mechanism functioning correctly
B is not correct because external costs
are a market failure
C is not correct because
non-provision of public goods is a
market failure
2 QS4: Construct and interpret The only correct answer is B
a range of standard graphical (1)
forms A is not correct because a parallel shift
QS9: Interpret, apply and happens when the tax is specific
analyse information in C is not correct because the price of
written, graphical, tabular ultra-processed foods will increase
and numerical forms D is not correct because the supply of
ultra-processed foods will decrease
3 QS9: Interpret, apply and The only correct answer is C
analyse information in (1)
written, graphical, tabular A is not correct because this describes a
and numerical forms free market economy
B is not correct because this describes a
command economy
D is not correct because resources for
0 Quantity public goods are allocated by the
government
Which one of the following is most likely to have caused this shift in supply? 4 QS4: Construct and interpret The only correct answer is A
a range of standard graphical (1)
A The introduction of an indirect tax on oranges forms B is not correct because total revenue
QS8: Make calculations of would increase by $480 000
B The introduction of new harvesting technology for oranges elasticity and interpret the C is not correct because the total
result revenue after the price change was $1
C The removal of a government subsidy for oranges QS9: Interpret, apply and 800 000
D The removal of orange trees following a natural disaster analyse information in D is not correct because the total
written, graphical, tabular revenue before the price change was $1
(Total for Question 5 = 1 mark) and numerical forms 320 000
5 QS4: Construct and interpret The only correct answer is B
a range of standard graphical (1)
forms A is not correct because an indirect tax
QS9: Interpret, apply and would add to costs and shift the supply
analyse information in curve to the left
written, graphical, tabular C is not correct because removal of a
and numerical forms subsidy will increase costs and reduce
supply
4 P87897A
Thursday 7 May 2026
WEC11/01A
Paper
Afternoon (Time: 1 hour 45 minutes)
reference
Economics
International Advanced Subsidiary
UNIT 1: Markets in action
Question Paper
Mark Scheme
You must have:
Source Booklet and Answer Book (sent separately)
(Results)
Do not return this Question Paper with the Answer Book
Summer 2026
Pearson Edexcel International Advanced Level in Economics
WEC11/01A
Unit 1: Markets in Action
Turn over
P87897APearson Education Ltd.
P:1/1/1/1/
*P87897A*
, Edexcel and BTEC Qualifications
SECTION A
Answer ALL questions in this section in the Answer Book.
1 Which one of the following is an example of government failure? Edexcel and BTEC qualifications are awarded by Pearson, the UK’s
largest awarding body. We provide a wide range of qualifications
including academic, vocational, occupational and specific
A A steel manufacturer leaving the market when responding to a decrease in price
programmes for employers. For further information visit our
B The external costs associated with pollution of a river caused by chemicals from qualifications websites at or .
a factory Alternatively, you can get in touch with us using the details on our
contact us page at
C Non-provision of public goods, such as streetlights and sea flood defences
D Unintended consequences, such as smuggling, following an increase in tax on
luxury goods
(Total for Question 1 = 1 mark)
2 In 2025 the Government of Colombia increased the tax on ultra-processed foods that Pearson: helping people progress, everywhere
are high in either salt, sugar or fat from 10% to 20%.
Pearson aspires to be the world’s leading learning company. Our aim is to help
Which one of the following is the most likely result of this increase in tax?
everyone progress in their lives through education. We believe in every kind of
learning, for all kinds of people, wherever they are in the world. We’ve been involved
A There will be a parallel shift in the supply curve in education for over 150 years, and by working across 70 countries, in 100
B There will be a pivot to the left of the supply curve languages, we have built an international reputation for our commitment to high
standards and raising achievement through innovation in education. Find out more
C The price of ultra-processed foods will decrease
about how we can help you and your students at:
D The supply of ultra-processed foods will increase
(Total for Question 2 = 1 mark)
3 In 2021 the Government of Cuba allowed individuals to set up their own businesses
for the first time. By 2024 these businesses employed 1.6 million people.
Which one of the following best describes a mixed economy?
A Where all resources are allocated by the price mechanism
B Where the government allocates all resources
C Where the government and the price mechanism allocate resources
Summer 2026
D Where resources for public goods are allocated by the price mechanism Question Paper Log Number P87897A
Publication Code WEC11_01A_2606_MS
(Total for Question 3 = 1 mark) All the material in this publication is
Pearson Education Ltd
2 P87897A
, General Marking Guidance
4 The diagram shows the market for shirts.
• All candidates must receive the same treatment. Examiners must mark the
Price per shirt first candidate in exactly the same way as they mark the last.
$
30 • Mark schemes should be applied positively. Candidates must be rewarded
for what they have shown they can do rather than penalised for omissions.
• Examiners should mark according to the mark scheme not according to
22
their perception of where the grade boundaries may lie.
• There is no ceiling on achievement. All marks on the mark scheme should be
18
used appropriately.
• All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will provide the
principles by which marks will be awarded and exemplification may be
Demand limited.
• When examiners are in doubt regarding the application of the mark scheme
Quantity to a candidate’s response, the team leader must be consulted.
(Thousands) • Crossed out work should be marked UNLESS the candidate has replaced it
The price of a shirt was originally $22. If the price is decreased to $18, which one of with an alternative response.
the following can be deduced from the diagram?
A Total revenue would increase by $480 000
B Total revenue would decrease by $480 000
C Total revenue before the price change was $1 800 000
D Total revenue after the price change was $1 320 000
(Total for Question 4 = 1 mark)
P87897A 3
Turn over
, 5 The diagram shows the supply of oranges in Spain. Section A
Question Quantitative skills assessed Answer Mark
Price per tonne S 1 QS9: Interpret, apply and The only correct answer is D
S1
analyse information in (1)
written, graphical, tabular A is not correct because this is the price
and numerical forms mechanism functioning correctly
B is not correct because external costs
are a market failure
C is not correct because
non-provision of public goods is a
market failure
2 QS4: Construct and interpret The only correct answer is B
a range of standard graphical (1)
forms A is not correct because a parallel shift
QS9: Interpret, apply and happens when the tax is specific
analyse information in C is not correct because the price of
written, graphical, tabular ultra-processed foods will increase
and numerical forms D is not correct because the supply of
ultra-processed foods will decrease
3 QS9: Interpret, apply and The only correct answer is C
analyse information in (1)
written, graphical, tabular A is not correct because this describes a
and numerical forms free market economy
B is not correct because this describes a
command economy
D is not correct because resources for
0 Quantity public goods are allocated by the
government
Which one of the following is most likely to have caused this shift in supply? 4 QS4: Construct and interpret The only correct answer is A
a range of standard graphical (1)
A The introduction of an indirect tax on oranges forms B is not correct because total revenue
QS8: Make calculations of would increase by $480 000
B The introduction of new harvesting technology for oranges elasticity and interpret the C is not correct because the total
result revenue after the price change was $1
C The removal of a government subsidy for oranges QS9: Interpret, apply and 800 000
D The removal of orange trees following a natural disaster analyse information in D is not correct because the total
written, graphical, tabular revenue before the price change was $1
(Total for Question 5 = 1 mark) and numerical forms 320 000
5 QS4: Construct and interpret The only correct answer is B
a range of standard graphical (1)
forms A is not correct because an indirect tax
QS9: Interpret, apply and would add to costs and shift the supply
analyse information in curve to the left
written, graphical, tabular C is not correct because removal of a
and numerical forms subsidy will increase costs and reduce
supply
4 P87897A
