A-level
ECONOMICS
Paper 1 Markets and Market Failure
May 2024 Time allowed: 2
hours
Materials
For this paper you must have:
an AQA 12-page answer book
a calculator.
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.
In Section A, answer EITHER Context 1 OR Context 2.
In Section B, answer ONE essay.
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.
Advice
You are advised to spend 1 hour on Section A and 1 hour on Section B.
7136/1
, 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
Average Average
Selected UK weekly weekly
cities university university
rent, 2015 rent, 2021
Birmingham £113.88 £157.94
Brighton £143.00 £235.93
Bristol £141.58 £184.38
Liverpool £112.97 £136.61
Manchester £120.87 £180.60
UK average £121.16 £169.35
Source: Cushman Wakefield Student
Accommodation Report, 2022
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 5
taxes and greater rights for renters. Rising construction 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 10
applying to university. The average private sector rent outside London consumes
almost three-quarters of 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
ECONOMICS
Paper 1 Markets and Market Failure
May 2024 Time allowed: 2
hours
Materials
For this paper you must have:
an AQA 12-page answer book
a calculator.
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.
In Section A, answer EITHER Context 1 OR Context 2.
In Section B, answer ONE essay.
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.
Advice
You are advised to spend 1 hour on Section A and 1 hour on Section B.
7136/1
, 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
Average Average
Selected UK weekly weekly
cities university university
rent, 2015 rent, 2021
Birmingham £113.88 £157.94
Brighton £143.00 £235.93
Bristol £141.58 £184.38
Liverpool £112.97 £136.61
Manchester £120.87 £180.60
UK average £121.16 £169.35
Source: Cushman Wakefield Student
Accommodation Report, 2022
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 5
taxes and greater rights for renters. Rising construction 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 10
applying to university. The average private sector rent outside London consumes
almost three-quarters of 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
