AS
ECONOMICS
Paper 1 The Operation of Markets and Market Failure
Insert
DO NOT WRITE ANY ANSWERS IN THIS INSERT. YOU MUST ANSWER THE
QUESTIONS IN THE ANSWER BOOKLET PROVIDED.
CONTEXT 1: CHILDCARE
Questions 21 to 26
• Extract A: Median full-time weekly earnings and mean hourly fees for
childcare for children aged under two and for
three-/four-year olds in selected regions of England in 2023
• Extract B: The problem of childcare
• Extract C: Free childcare for all children under the age of five?
CONTEXT 2: AGRICULTURE
Questions 27 to 32
• Extract D: Land use on agricultural holdings in England for woodland
and potatoes, and the price of potatoes, 2013 to 2023
• Extract E: Challenges facing agriculture post-Brexit
• Extract F: Problems and solutions
IB/M/Jun26/G4004/V6 7135/1
, 2
Context 1 Total for this context: 50 marks
CHILDCARE
Extract A: Median full-time weekly earnings and mean hourly fees for childcare for children
aged under two and for three-/four-year olds in selected regions of England in 2023
Weekly full-time Hourly fee for children Hourly fee for three-/
Region
earnings (£) aged under two (£) four-year olds (£)
East 673.50 6.03 6.01
London 838.90 7.83 7.49
North East 608.40 5.32 5.19
North West 646.30 5.27 5.24
South East 704.30 6.25 6.26
South West 650.60 5.73 5.48
West Midlands 650.70 5.74 5.50
Note: Earnings are gross (before tax) for people working 30 hours a week or more and ‘childcare’ covers all types of paid provision,
including nursery schools (nurseries), voluntary groups and childminders.
Source: ons.gov.uk
Extract B: The problem of childcare
‘Childcare’ involves children being looked after by someone who is not their parent/guardian or
their partner. This includes, among others, nursery schools (nurseries), playgroups and
childminders, all of which may be described as formal childcare. Informal childcare is often
done by friends and other family members. According to a Department for Education (DfE)
survey, in one particular week in 2023, 2.2 million (72%) of children aged 0 to 4 had some form 5
of childcare.
With more parents of young children in work, childcare is vital for many families but it can be
expensive and hard to find. The survey reported that 66% of working mothers said that reliable
childcare helped them to work but, in 2023, 34% of parents of young children found it difficult
to cover the expense. A fifth said they had problems finding suitable childcare. However, in 10
2023, in England and Wales, the number of births was the lowest since 1977.
According to a 2018 report, 84% of childcare in England is provided by childminders or
organisations that work for profit. In contrast, in most parts of Germany, childcare is heavily
subsidised by the government or free.
The structure of the UK childcare market is changing, with some large firms buying up small 15
local providers to create nationwide chains. Much of this expansion has been financed by
borrowing, raising concerns about the long-term stability of the sector. England’s largest chain
is owned by a Canadian firm and has about 400 nurseries. Another firm, with 48 nurseries, ran
into financial difficulties in 2022 and many have since closed.
Source: News reports, December 2024
IB/M/Jun26/7135/1
ECONOMICS
Paper 1 The Operation of Markets and Market Failure
Insert
DO NOT WRITE ANY ANSWERS IN THIS INSERT. YOU MUST ANSWER THE
QUESTIONS IN THE ANSWER BOOKLET PROVIDED.
CONTEXT 1: CHILDCARE
Questions 21 to 26
• Extract A: Median full-time weekly earnings and mean hourly fees for
childcare for children aged under two and for
three-/four-year olds in selected regions of England in 2023
• Extract B: The problem of childcare
• Extract C: Free childcare for all children under the age of five?
CONTEXT 2: AGRICULTURE
Questions 27 to 32
• Extract D: Land use on agricultural holdings in England for woodland
and potatoes, and the price of potatoes, 2013 to 2023
• Extract E: Challenges facing agriculture post-Brexit
• Extract F: Problems and solutions
IB/M/Jun26/G4004/V6 7135/1
, 2
Context 1 Total for this context: 50 marks
CHILDCARE
Extract A: Median full-time weekly earnings and mean hourly fees for childcare for children
aged under two and for three-/four-year olds in selected regions of England in 2023
Weekly full-time Hourly fee for children Hourly fee for three-/
Region
earnings (£) aged under two (£) four-year olds (£)
East 673.50 6.03 6.01
London 838.90 7.83 7.49
North East 608.40 5.32 5.19
North West 646.30 5.27 5.24
South East 704.30 6.25 6.26
South West 650.60 5.73 5.48
West Midlands 650.70 5.74 5.50
Note: Earnings are gross (before tax) for people working 30 hours a week or more and ‘childcare’ covers all types of paid provision,
including nursery schools (nurseries), voluntary groups and childminders.
Source: ons.gov.uk
Extract B: The problem of childcare
‘Childcare’ involves children being looked after by someone who is not their parent/guardian or
their partner. This includes, among others, nursery schools (nurseries), playgroups and
childminders, all of which may be described as formal childcare. Informal childcare is often
done by friends and other family members. According to a Department for Education (DfE)
survey, in one particular week in 2023, 2.2 million (72%) of children aged 0 to 4 had some form 5
of childcare.
With more parents of young children in work, childcare is vital for many families but it can be
expensive and hard to find. The survey reported that 66% of working mothers said that reliable
childcare helped them to work but, in 2023, 34% of parents of young children found it difficult
to cover the expense. A fifth said they had problems finding suitable childcare. However, in 10
2023, in England and Wales, the number of births was the lowest since 1977.
According to a 2018 report, 84% of childcare in England is provided by childminders or
organisations that work for profit. In contrast, in most parts of Germany, childcare is heavily
subsidised by the government or free.
The structure of the UK childcare market is changing, with some large firms buying up small 15
local providers to create nationwide chains. Much of this expansion has been financed by
borrowing, raising concerns about the long-term stability of the sector. England’s largest chain
is owned by a Canadian firm and has about 400 nurseries. Another firm, with 48 nurseries, ran
into financial difficulties in 2022 and many have since closed.
Source: News reports, December 2024
IB/M/Jun26/7135/1
