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 Mark Scheme (Results)
Economics A
Advanced
PAPER 1: Markets and Business Behaviour
Summer 2026
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,
Pearson Edexcel Advanced Level in Economics A
centre number and candidate number. Markets and Business Behaviour
• There are three sections in this question paper. Answer all questions from
Section A and Section B. Answer one question from Section C. 9EC0_01
• 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
P79935APearson Education Ltd.
P:1/1/1/1/1/1
*P79935A0132*
, SECTION A
Edexcel and BTEC Qualifications
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
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 Edexcel and BTEC qualifications are awarded by Pearson, the UK’s
answer, put a line through the box and then mark your new answer with a cross . largest awarding body. We provide a wide range of qualifications
You are advised to spend 30 minutes on this section. including academic, vocational, occupational and specific
programmes for employers. For further information visit our
Use the data to support your answers where relevant.
qualifications websites at or .
You may annotate and include diagrams in your answers. Alternatively, you can get in touch with us using the details on our
1 More than 50% of the Netherlands is below sea level. Protective walls along the contact us page at
coastline and many Dutch rivers have been constructed by the government to
protect the country against the consistent threats of flooding.
(Source: adapted from
flood-management-climate-adaption-model-world)
(a) With reference to the data, explain one reason for the under-provision of sea and Pearson: helping people progress, everywhere
river defences by the free market.
(4)
Pearson aspires to be the world’s leading learning company. Our aim is to help
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
everyone progress in their lives through education. We believe in every kind of
learning, for all kinds of people, wherever they are in the world. We’ve been
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . involved in education for over 150 years, and by working across 70 countries, in
100 languages, we have built an international reputation for our commitment to
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
high standards and raising achievement through innovation in education. Find
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
out more about how we can help you and your students at:
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summer 2026
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Question Paper Log Number P79935A
Publication Code 9EC0_01_2606_MS
All the material in this publication is
Pearson
2
*P79935A0232*
, General Marking Guidance
(b) Which one of the following is an example of government failure?
(1) • All candidates must receive the same treatment. Examiners must mark the
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
A Collusive behaviour between firms first candidate in exactly the same way as they mark the last.
B Excessive administrative costs of environmental regulation • Mark schemes should be applied positively. Candidates must be rewarded
for what they have shown they can do rather than penalised for omissions.
C Government intervention leads to a net welfare gain
• Examiners should mark according to the mark scheme not according to their
D Positive externalities in consumption
perception of where the grade boundaries may lie.
(Total for Question 1 = 5 marks) • There is no ceiling on achievement. All marks on the mark scheme should be
used appropriately.
• All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will provide the principles
by which marks will be awarded and exemplification may be limited.
• When examiners are in doubt regarding the application of the mark scheme
to a candidate’s response, the team leader must be consulted.
• Crossed out work should be marked UNLESS the candidate has replaced it
with an alternative response.
3
*P79935A0332* Turn over
, Question Answer Mark
Number
1 (a) Knowledge 2, Application 1, Analysis 1
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. Knowledge and Analysis: up to 3 marks e.g.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Stamp duty (%) Value of houses • It is a public good (1)
(£) • Free rider problem (1) because people can use a
good or service without paying for it (1)
0 Up to
• Non-rivalrous (1) so one person’s use does not
to 925 000 reduce the amount available for others (1) OR Non-
excludable (1) which means that it is costly or
(Source adapted from: impossible to prevent others from using it (1)
• Lack of profit incentive (1)
(a) Calculate the payment received by the UK government on a property sold for • Missing market (1)
£489 000 in 2024. You are advised to show your working.
• Market failure (1)
(4)
• Other valid reasons for under-provision (1)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application: 1 mark for e.g.
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • ‘more than 50% of the Netherlands is below sea
level’
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • ‘to protect the country against the consistent
threats of flooding’
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• ‘protective walls’
(4)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Question Answer Mark
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Number
1 (b) Knowledge 1
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The only correct answer is B
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A is not correct because collusive behaviour between
firms is a form of market failure
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C is not correct because government intervention
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . leading to a net welfare gain is a benefit of government
intervention
D is not correct because positive externalities in
consumption are an example of market failure
(1)
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 Mark Scheme (Results)
Economics A
Advanced
PAPER 1: Markets and Business Behaviour
Summer 2026
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,
Pearson Edexcel Advanced Level in Economics A
centre number and candidate number. Markets and Business Behaviour
• There are three sections in this question paper. Answer all questions from
Section A and Section B. Answer one question from Section C. 9EC0_01
• 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
P79935APearson Education Ltd.
P:1/1/1/1/1/1
*P79935A0132*
, SECTION A
Edexcel and BTEC Qualifications
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
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 Edexcel and BTEC qualifications are awarded by Pearson, the UK’s
answer, put a line through the box and then mark your new answer with a cross . largest awarding body. We provide a wide range of qualifications
You are advised to spend 30 minutes on this section. including academic, vocational, occupational and specific
programmes for employers. For further information visit our
Use the data to support your answers where relevant.
qualifications websites at or .
You may annotate and include diagrams in your answers. Alternatively, you can get in touch with us using the details on our
1 More than 50% of the Netherlands is below sea level. Protective walls along the contact us page at
coastline and many Dutch rivers have been constructed by the government to
protect the country against the consistent threats of flooding.
(Source: adapted from
flood-management-climate-adaption-model-world)
(a) With reference to the data, explain one reason for the under-provision of sea and Pearson: helping people progress, everywhere
river defences by the free market.
(4)
Pearson aspires to be the world’s leading learning company. Our aim is to help
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
everyone progress in their lives through education. We believe in every kind of
learning, for all kinds of people, wherever they are in the world. We’ve been
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . involved in education for over 150 years, and by working across 70 countries, in
100 languages, we have built an international reputation for our commitment to
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
high standards and raising achievement through innovation in education. Find
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
out more about how we can help you and your students at:
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summer 2026
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Question Paper Log Number P79935A
Publication Code 9EC0_01_2606_MS
All the material in this publication is
Pearson
2
*P79935A0232*
, General Marking Guidance
(b) Which one of the following is an example of government failure?
(1) • All candidates must receive the same treatment. Examiners must mark the
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
A Collusive behaviour between firms first candidate in exactly the same way as they mark the last.
B Excessive administrative costs of environmental regulation • Mark schemes should be applied positively. Candidates must be rewarded
for what they have shown they can do rather than penalised for omissions.
C Government intervention leads to a net welfare gain
• Examiners should mark according to the mark scheme not according to their
D Positive externalities in consumption
perception of where the grade boundaries may lie.
(Total for Question 1 = 5 marks) • There is no ceiling on achievement. All marks on the mark scheme should be
used appropriately.
• All the marks on the mark scheme are designed to be awarded. Examiners
should always award full marks if deserved, i.e. if the answer matches the
mark scheme. Examiners should also be prepared to award zero marks if the
candidate’s response is not worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will provide the principles
by which marks will be awarded and exemplification may be limited.
• When examiners are in doubt regarding the application of the mark scheme
to a candidate’s response, the team leader must be consulted.
• Crossed out work should be marked UNLESS the candidate has replaced it
with an alternative response.
3
*P79935A0332* Turn over
, Question Answer Mark
Number
1 (a) Knowledge 2, Application 1, Analysis 1
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. Knowledge and Analysis: up to 3 marks e.g.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Stamp duty (%) Value of houses • It is a public good (1)
(£) • Free rider problem (1) because people can use a
good or service without paying for it (1)
0 Up to
• Non-rivalrous (1) so one person’s use does not
to 925 000 reduce the amount available for others (1) OR Non-
excludable (1) which means that it is costly or
(Source adapted from: impossible to prevent others from using it (1)
• Lack of profit incentive (1)
(a) Calculate the payment received by the UK government on a property sold for • Missing market (1)
£489 000 in 2024. You are advised to show your working.
• Market failure (1)
(4)
• Other valid reasons for under-provision (1)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Application: 1 mark for e.g.
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • ‘more than 50% of the Netherlands is below sea
level’
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • ‘to protect the country against the consistent
threats of flooding’
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
• ‘protective walls’
(4)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Question Answer Mark
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1 (b) Knowledge 1
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The only correct answer is B
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A is not correct because collusive behaviour between
firms is a form of market failure
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C is not correct because government intervention
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intervention
D is not correct because positive externalities in
consumption are an example of market failure
(1)
4
*P79935A0432*
