000001
AQA
A-level
ECONOMICS
Paper 1 Markets and Market Failure
Wednesday 15 May 2024 Morning Time allowed: 2 hours
Materials
For this paper you must have:
S
• an AQA 12-page answer book
• a calculator.
IC
Instructions
• Use black ink or black ball-point pen. Pencil should only be used for drawing.
• Write the information required on the front cover of your answer book.
The Paper Reference is 7136/1.
M
• In Section A, answer EITHER Context 1 OR Context 2.
• In Section B, answer ONE essay.
O
Information
• The marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
• There are 40 marks for Section A and 40 marks for Section B.
N
Advice
• You are advised to spend 1 hour on Section A and 1 hour on Section B.
O
EC
IB/G/Jun24/G4001/E11 7136/1
Page 1 of 9
, 000002
2
Section A
Answer EITHER Context 1 OR Context 2.
EITHER
Context 1 Total for this context: 40 marks
The market for university accommodation
Study Extracts A, B and C and then answer all parts of Context 1 which follow.
Extract A
Table 1: Average weekly university rent, Figure 1: Number of full-time students at UK
selected UK cities, 2015 and universities, and type of
2021 accommodation, 2015 to 2021
S
Average Average
Selected UK weekly weekly
cities university university
IC
rent, 2015 rent, 2021
Birmingham £113.88 £157.94
Brighton £143.00 £235.93
Bristol £141.58 £184.38
Liverpool £112.97 £136.61
M
Manchester £120.87 £180.60
UK average £121.16 £169.35
O
N
O
Source: Cushman Wakefield Student Accommodation
Report, 2022
EC
Extract B: A serious shortage of student accommodation
The number of 18-year-olds in the UK applying to university is rising. In addition, there was a
record number of 277 000 foreign students in 2022.
Universities have expanded the number of places on offer to students, but the supply of student
accommodation is highly inelastic. Providers of rental accommodation have been deterred by
stricter rules on shared houses, higher taxes and greater rights for renters. Rising construction 5
costs, interest rates and inflation have resulted in an insufficient number of new developments
in many university cities. Supply shortages have been particularly acute in some cities, and
certain universities have asked students to live at home.
Shortages of accommodation could mean that some students are discouraged from applying to
university. The average private sector rent outside London consumes almost three-quarters of 10
the maximum student loan, and most students are ineligible for this maximum. Some of the top
universities may become out of reach to poorer students who do not live locally.
Source: News reports, 2023
IB/G/Jun24/7136/1
Page 2 of 9
AQA
A-level
ECONOMICS
Paper 1 Markets and Market Failure
Wednesday 15 May 2024 Morning Time allowed: 2 hours
Materials
For this paper you must have:
S
• an AQA 12-page answer book
• a calculator.
IC
Instructions
• Use black ink or black ball-point pen. Pencil should only be used for drawing.
• Write the information required on the front cover of your answer book.
The Paper Reference is 7136/1.
M
• In Section A, answer EITHER Context 1 OR Context 2.
• In Section B, answer ONE essay.
O
Information
• The marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
• There are 40 marks for Section A and 40 marks for Section B.
N
Advice
• You are advised to spend 1 hour on Section A and 1 hour on Section B.
O
EC
IB/G/Jun24/G4001/E11 7136/1
Page 1 of 9
, 000002
2
Section A
Answer EITHER Context 1 OR Context 2.
EITHER
Context 1 Total for this context: 40 marks
The market for university accommodation
Study Extracts A, B and C and then answer all parts of Context 1 which follow.
Extract A
Table 1: Average weekly university rent, Figure 1: Number of full-time students at UK
selected UK cities, 2015 and universities, and type of
2021 accommodation, 2015 to 2021
S
Average Average
Selected UK weekly weekly
cities university university
IC
rent, 2015 rent, 2021
Birmingham £113.88 £157.94
Brighton £143.00 £235.93
Bristol £141.58 £184.38
Liverpool £112.97 £136.61
M
Manchester £120.87 £180.60
UK average £121.16 £169.35
O
N
O
Source: Cushman Wakefield Student Accommodation
Report, 2022
EC
Extract B: A serious shortage of student accommodation
The number of 18-year-olds in the UK applying to university is rising. In addition, there was a
record number of 277 000 foreign students in 2022.
Universities have expanded the number of places on offer to students, but the supply of student
accommodation is highly inelastic. Providers of rental accommodation have been deterred by
stricter rules on shared houses, higher taxes and greater rights for renters. Rising construction 5
costs, interest rates and inflation have resulted in an insufficient number of new developments
in many university cities. Supply shortages have been particularly acute in some cities, and
certain universities have asked students to live at home.
Shortages of accommodation could mean that some students are discouraged from applying to
university. The average private sector rent outside London consumes almost three-quarters of 10
the maximum student loan, and most students are ineligible for this maximum. Some of the top
universities may become out of reach to poorer students who do not live locally.
Source: News reports, 2023
IB/G/Jun24/7136/1
Page 2 of 9
