Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Monday 11 May 2026
Morning (Time: 2 hours) Paper
reference 9EC0/01
Economics A
Advanced
PAPER 1: Markets and Business Behaviour
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.
• There are three sections in this question paper. Answer all questions from
Section A and Section B. Answer one question from Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 100.
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.
Turn over
P79935A
©2026 Pearson Education Ltd.
P:1/1/1/1/1/1
*P79935A0132*
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Some 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 .
You are advised to spend 30 minutes on this section.
Use the data to support your answers where relevant.
You may annotate and include diagrams in your answers.
1 More than 50% of the Netherlands is below sea level. Protective walls along the
coastline and many Dutch rivers have been constructed by the government to
protect the country against the consistent threats of flooding.
(Source: adapted from https://www.preventionweb.net/news/netherlands-
flood-management-climate-adaption-model-world)
(a) With reference to the data, explain one reason for the under-provision of sea and
river defences by the free market.
(4)
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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2
*P79935A0232*
, (b) Which one of the following is an example of government failure?
(1)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
A Collusive behaviour between firms
B Excessive administrative costs of environmental regulation
C Government intervention leads to a net welfare gain
D Positive externalities in consumption
(Total for Question 1 = 5 marks)
3
*P79935A0332* Turn over
, 2 In 2024, the UK stamp duty, a tax on the purchase of houses, was charged at the
following rates. There is no stamp duty charged on the first £250 000, regardless of
property value.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Stamp duty (%) Value of houses
(£)
0 Up to 250 000
5 250 000 to 925 000
(Source adapted from: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates)
(a) Calculate the payment received by the UK government on a property sold for
£489 000 in 2024. You are advised to show your working.
(4)
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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4
*P79935A0432*
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Monday 11 May 2026
Morning (Time: 2 hours) Paper
reference 9EC0/01
Economics A
Advanced
PAPER 1: Markets and Business Behaviour
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.
• There are three sections in this question paper. Answer all questions from
Section A and Section B. Answer one question from Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 100.
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.
Turn over
P79935A
©2026 Pearson Education Ltd.
P:1/1/1/1/1/1
*P79935A0132*
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Some 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 .
You are advised to spend 30 minutes on this section.
Use the data to support your answers where relevant.
You may annotate and include diagrams in your answers.
1 More than 50% of the Netherlands is below sea level. Protective walls along the
coastline and many Dutch rivers have been constructed by the government to
protect the country against the consistent threats of flooding.
(Source: adapted from https://www.preventionweb.net/news/netherlands-
flood-management-climate-adaption-model-world)
(a) With reference to the data, explain one reason for the under-provision of sea and
river defences by the free market.
(4)
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
2
*P79935A0232*
, (b) Which one of the following is an example of government failure?
(1)
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
A Collusive behaviour between firms
B Excessive administrative costs of environmental regulation
C Government intervention leads to a net welfare gain
D Positive externalities in consumption
(Total for Question 1 = 5 marks)
3
*P79935A0332* Turn over
, 2 In 2024, the UK stamp duty, a tax on the purchase of houses, was charged at the
following rates. There is no stamp duty charged on the first £250 000, regardless of
property value.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Stamp duty (%) Value of houses
(£)
0 Up to 250 000
5 250 000 to 925 000
(Source adapted from: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates)
(a) Calculate the payment received by the UK government on a property sold for
£489 000 in 2024. You are advised to show your working.
(4)
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ ................ . . . . . . . . . . . . . . . . . . . .
4
*P79935A0432*
