A-level ECONOMICS Paper 3 Economic Principles and Issues

Materials For this paper you must have:  the Insert  a calculator. Instructions  Answer all questions.  Use black ink or black ball-point pen. Pencil should only be used for drawing.  Fill in the boxes at the top of this page.  You will need to refer to the Insert provided to answer Section B.  You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages.  If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s).  Do all rough work in this answer book. Cross through any work that you do not want to be marked. Information  The maximum mark for this paper is 80.  The marks for questions are shown in brackets.  No deductions will be made for wrong answers. For Examiner’s Use Section Mark A B TOTAL 2 Do not write outside the *02* IB/M/Jun22/7136/3 Section A Answer all questions in this section. box Only one answer per question is allowed. For each question completely fill in the circle alongside the appropriate answer. CORRECT METHOD WRONG METHODS If you want to change your answer you must cross out your original answer as shown. If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown. 0 1 A positive statement [1 mark] A does not take into account irrational behaviour. B enables accurate forecasts to be made. C includes a value judgement. D may be true or false. 0 2 Which one of the following is a nudge technique that could be used to encourage healthy eating? [1 mark] A Banning supermarkets from selling high-calorie energy drinks B Increasing taxes on high-fat products to raise their price C Moving products with a high sugar content away from supermarket checkouts D Subsidising fruit and vegetables to reduce their prices 3 Do not write outside the *03* IB/M/Jun22/7136/3 Turn over for the next question box Turn over ► 0 3 Figure 1 shows the production possibility diagram for an economy producing capital goods and consumer goods. Figure 1 The opportunity cost of producing an additional unit of capital goods is [1 mark] A greater at X than Y. B greater at Z than Y. C the same at X, Y and Z. D zero when 300 units of consumer goods are produced. 4 Do not write outside the *04* IB/M/Jun22/7136/3 Table 1 shows the individual price indices and the weightings of the three goods that make up a price index. Table 1 Good Weighting Price Index in April 2022 (April 2021=100) X 0.1 102 Y 0.4 104 Z 0.5 103 What was the percentage increase in the overall price index between April 2021 to April 2022? box [1 mark] A 1.1% B 3% C 3.3% D 9% 0 5 When using data to make international comparisons of the standard of living, purchasing power parity (PPP) exchange rates are more useful than market exchange rates. This is because PPP exchange rates take into account differences in countries’ [1 mark] A distribution of income. B levels of taxation. C price levels. D rates of population growth. 0 4 5 Do not write outside the box *05* IB/M/Jun22/7136/3 0 6 Figure 2 shows two aggregate demand (AD1 and AD2 ) curves and the short-run aggregate supply (SRAS) curve for an economy. Figure 2 Which one of the following is the government most likely to increase if it wishes to use fiscal policy to reduce national output from Y1 to Y2? [1 mark] A Infrastructure expenditure B Interest rates C Rates of income tax D The budget deficit Turn over for the next question