Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel International Advanced Level
Thursday 9 May 2024
Afternoon (Time: 1 hour 45 minutes) Paper
reference WEC11/01
Economics ■ ■
International Advanced Subsidiary
UNIT 1: Markets in Action
You must have: Total Marks
Source Booklet (enclosed)
Instructions
•• Use black ink or ball‑point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answer ALL questions in Sections A, B and C.
•• Answer ONE question in Section D.
Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 80.
The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.
Pearson Edexcel International Advanced Level International Advanced Subsidiary UNIT 1: Markets in Action QP MAY 2024
Turn over
P75888A
©2024 Pearson Education Ltd.
F:1/1/1/1/
, SECTION A
Answer ALL questions in this section.
DO NOT WRITE IN THIS AREA
Questions must be answered with a cross in a box . If you change your mind about an answer,
put a line through the box and then mark your new answer with a cross .
1 Which one of the following has an opportunity cost of zero?
A An economic good
B A free good
C A public good
D A capital good
(Total for Question 1 = 1 mark)
2 In 2021 the UK’s tradeable pollution permits scheme issued 4.4 million permits to
airline companies. However, the industry only required 3.3 million permits.
DO NOT WRITE IN THIS AREA
Which one of the following is the likely result of supplying this number of permits?
A The market price of permits will decrease
B The market price of permits will increase
C Airline companies will leave the market as a result of increased costs
D Airline companies will have more incentive to invest in cleaner technology
(Total for Question 2 = 1 mark)
3 In North America the cross elasticity of demand for coffee with respect to a change in
the price of milk was estimated to be –0.04.
Which one of the following can be deduced from this information?
A Coffee and milk are inferior goods DO NOT WRITE IN THIS AREA
B Coffee and milk are substitute goods
C Coffee and milk are unrelated goods
D Coffee and milk are complementary goods
(Total for Question 3 = 1 mark)
2
■■■■
, 4 The diagram shows the demand curve for bottled energy drinks.
Price per
D
DO NOT WRITE IN THIS AREA
bottle of
energy drink
C
B
Demand
DO NOT WRITE IN THIS AREA
A
0
Quantity of
energy drinks
Which one of the following points has the value of –1 for price elasticity of demand?
A
B
C
D
(Total for Question 4 = 1 mark)
DO NOT WRITE IN THIS AREA
3
■■■■ Turn over
, 5 The table shows the proportion of electricity generated from different sources for
Denmark in 2010 and 2021.
DO NOT WRITE IN THIS AREA
Coal Oil Natural gas Hydro Wind Solar Other renewables
2010 43.8% 2.0% 20.3% 0.1% 20.1% 0.0% 13.7%
2021 13.2% 0.8% 4.6% 0.0% 48.6% 4.0% 28.8%
Which one of the following can be deduced from the table?
A Most electricity was generated by renewable resources in 2010 and by
non‑renewable resources in 2021
B Most electricity was generated by non‑renewable resources in 2010 and by
renewable resources in 2021
C In 2010 66.1% of electricity was generated using renewable resources
D In 2021 81.4% of electricity was generated using non‑renewable resources
DO NOT WRITE IN THIS AREA
(Total for Question 5 = 1 mark)
6 In 2022 average house prices in China decreased by 2.1%. Research into the housing
market in China estimated that the price elasticity of supply for new houses was 2.8.
Ceteris paribus, which one of the following can be deduced from this information?
A The supply of new houses would decrease by 5.88%
B The supply of new houses would increase by 5.88%
C The supply of new houses would increase by 1.33%
D The supply of new houses would decrease by 1.33%
(Total for Question 6 = 1 mark)
DO NOT WRITE IN THIS AREA
TOTAL FOR SECTION A = 6 MARKS
4
■■■■
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel International Advanced Level
Thursday 9 May 2024
Afternoon (Time: 1 hour 45 minutes) Paper
reference WEC11/01
Economics ■ ■
International Advanced Subsidiary
UNIT 1: Markets in Action
You must have: Total Marks
Source Booklet (enclosed)
Instructions
•• Use black ink or ball‑point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answer ALL questions in Sections A, B and C.
•• Answer ONE question in Section D.
Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 80.
The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.
Pearson Edexcel International Advanced Level International Advanced Subsidiary UNIT 1: Markets in Action QP MAY 2024
Turn over
P75888A
©2024 Pearson Education Ltd.
F:1/1/1/1/
, SECTION A
Answer ALL questions in this section.
DO NOT WRITE IN THIS AREA
Questions must be answered with a cross in a box . If you change your mind about an answer,
put a line through the box and then mark your new answer with a cross .
1 Which one of the following has an opportunity cost of zero?
A An economic good
B A free good
C A public good
D A capital good
(Total for Question 1 = 1 mark)
2 In 2021 the UK’s tradeable pollution permits scheme issued 4.4 million permits to
airline companies. However, the industry only required 3.3 million permits.
DO NOT WRITE IN THIS AREA
Which one of the following is the likely result of supplying this number of permits?
A The market price of permits will decrease
B The market price of permits will increase
C Airline companies will leave the market as a result of increased costs
D Airline companies will have more incentive to invest in cleaner technology
(Total for Question 2 = 1 mark)
3 In North America the cross elasticity of demand for coffee with respect to a change in
the price of milk was estimated to be –0.04.
Which one of the following can be deduced from this information?
A Coffee and milk are inferior goods DO NOT WRITE IN THIS AREA
B Coffee and milk are substitute goods
C Coffee and milk are unrelated goods
D Coffee and milk are complementary goods
(Total for Question 3 = 1 mark)
2
■■■■
, 4 The diagram shows the demand curve for bottled energy drinks.
Price per
D
DO NOT WRITE IN THIS AREA
bottle of
energy drink
C
B
Demand
DO NOT WRITE IN THIS AREA
A
0
Quantity of
energy drinks
Which one of the following points has the value of –1 for price elasticity of demand?
A
B
C
D
(Total for Question 4 = 1 mark)
DO NOT WRITE IN THIS AREA
3
■■■■ Turn over
, 5 The table shows the proportion of electricity generated from different sources for
Denmark in 2010 and 2021.
DO NOT WRITE IN THIS AREA
Coal Oil Natural gas Hydro Wind Solar Other renewables
2010 43.8% 2.0% 20.3% 0.1% 20.1% 0.0% 13.7%
2021 13.2% 0.8% 4.6% 0.0% 48.6% 4.0% 28.8%
Which one of the following can be deduced from the table?
A Most electricity was generated by renewable resources in 2010 and by
non‑renewable resources in 2021
B Most electricity was generated by non‑renewable resources in 2010 and by
renewable resources in 2021
C In 2010 66.1% of electricity was generated using renewable resources
D In 2021 81.4% of electricity was generated using non‑renewable resources
DO NOT WRITE IN THIS AREA
(Total for Question 5 = 1 mark)
6 In 2022 average house prices in China decreased by 2.1%. Research into the housing
market in China estimated that the price elasticity of supply for new houses was 2.8.
Ceteris paribus, which one of the following can be deduced from this information?
A The supply of new houses would decrease by 5.88%
B The supply of new houses would increase by 5.88%
C The supply of new houses would increase by 1.33%
D The supply of new houses would decrease by 1.33%
(Total for Question 6 = 1 mark)
DO NOT WRITE IN THIS AREA
TOTAL FOR SECTION A = 6 MARKS
4
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