A-level
Economics
Paper 1 Markets and Market Failure
Monday 12 May 2025 Morning 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.
IB/M/Jun25/G4001/V9 7136/1
, 2
Section A
Answer EITHER Context 1 OR Context 2.
EITHER
Context 1 Total for this context: 40 marks
The international rice market
Study Extracts A, B and C and then answer all parts of Context 1 which follow.
Extract A:
Figure 1: Exports of rice (million Figure 2: Index of world prices for rice,
tonnes) 2010 to 2022 cereals and all food, 2021 to 2023
(2015 = 100)
Country 2010 2022
India 2.8 22.5
Thailand 10.6 8.5
Vietnam 7.0 7.5
Pakistan 3.4 3.7
USA 3.5 2.0
Rest of the world 7.9 11.4
Total 35.2 55.6
Source: International Food Policy Research Institute, Note: ‘Cereals’ includes rice and six other cereals
2023
Source: Food and Agriculture Organization, 2023
Extract B: A ban on Indian rice exports
In Nigeria, rice is the most commonly consumed food but the price of this imported cereal rose
by 46% in the year to August 2023. The sharp increase in the price of rice follows a rice export
ban by India, the world’s largest exporter. The ban, introduced in August 2022, was in response
to fears of a production shortfall in India and rising domestic prices.
Analysts warn that the world is on track for a repeat of the 2008 rice crisis when protectionist 5
policies contributed to rice prices tripling. This time the crisis could be worse, as soaring
demand, driven by population growth, combines with the effects of climate change, leading to
poor harvests. In Thailand and Vietnam, the world’s second and third largest rice exporters,
prices have risen by 14% and 22% respectively since India imposed its ban. The United Nations
World Food Programme (WFP) points out that the countries likely to be worst affected, such as 10
Nigeria, are already suffering from sky-high food prices, soaring debt and depreciating
currencies. This will result in “a staple commodity not being affordable for millions”, said a
spokesperson.
IB/M/Jun25/7136/1
Economics
Paper 1 Markets and Market Failure
Monday 12 May 2025 Morning 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.
IB/M/Jun25/G4001/V9 7136/1
, 2
Section A
Answer EITHER Context 1 OR Context 2.
EITHER
Context 1 Total for this context: 40 marks
The international rice market
Study Extracts A, B and C and then answer all parts of Context 1 which follow.
Extract A:
Figure 1: Exports of rice (million Figure 2: Index of world prices for rice,
tonnes) 2010 to 2022 cereals and all food, 2021 to 2023
(2015 = 100)
Country 2010 2022
India 2.8 22.5
Thailand 10.6 8.5
Vietnam 7.0 7.5
Pakistan 3.4 3.7
USA 3.5 2.0
Rest of the world 7.9 11.4
Total 35.2 55.6
Source: International Food Policy Research Institute, Note: ‘Cereals’ includes rice and six other cereals
2023
Source: Food and Agriculture Organization, 2023
Extract B: A ban on Indian rice exports
In Nigeria, rice is the most commonly consumed food but the price of this imported cereal rose
by 46% in the year to August 2023. The sharp increase in the price of rice follows a rice export
ban by India, the world’s largest exporter. The ban, introduced in August 2022, was in response
to fears of a production shortfall in India and rising domestic prices.
Analysts warn that the world is on track for a repeat of the 2008 rice crisis when protectionist 5
policies contributed to rice prices tripling. This time the crisis could be worse, as soaring
demand, driven by population growth, combines with the effects of climate change, leading to
poor harvests. In Thailand and Vietnam, the world’s second and third largest rice exporters,
prices have risen by 14% and 22% respectively since India imposed its ban. The United Nations
World Food Programme (WFP) points out that the countries likely to be worst affected, such as 10
Nigeria, are already suffering from sky-high food prices, soaring debt and depreciating
currencies. This will result in “a staple commodity not being affordable for millions”, said a
spokesperson.
IB/M/Jun25/7136/1
