Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Edexcel Level 3 GCE
Tuesday 12 May 2026
Morning (Time: 1 hour 30 minutes) Paper
reference 8EC0/01 Mark Scheme (Results)
Economics A
Advanced Subsidiary
PAPER 1: Introduction to Markets and Market Failure
Summer 2026
You must have: Total Marks
Source Booklet (enclosed)
Instructions Edexcel GCE AS Level in Economics
•• Use black ink or ball-point pen. tion to Markets and Market Failure
Fill in the boxes at the top of this page with your name,
centre number and candidate number. 8EC0_01
•• There are two sections in this question paper.
Answer all questions in Section A.
•• InAnswer
Section B, answer all of questions 6(a) to 6(e) and one question from 6(f) or 6(g).
the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 80.
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
P79810A
P:1/1/1/1/1/1/1
Education Ltd. *P79810A0124*
, 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 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 25 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. You may annotate and
include diagrams in your answers. qualifications websites at or .
Alternatively, you can get in touch with us using the details on our
1 The United States operates an economic system known as a ‘mixed economy’. The contact us page at
proportion of government spending relative to GDP was 36.8% in 2022.
(a) With reference to the information provided, explain one role of the state within a
mixed economy.
(3)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
helping people progress, everywhere
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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:
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Which one of the following is an advantage of a free market economy?
(1)
A All goods are produced at the social optimum position
B Maximisation of social welfare through central planning
C Signalling allows markets to allocate resources efficiently Summer 2026
Question Paper Log Number P79810A
D Under-provision of public goods Publication Code 8EC0_01_2606_MS
All the material in this publication is
(Total for Question 1 = 4 marks)
2
*P79810A0224*
, General Marking Guidance
2 Olive oil is seen as a necessity in Italy. Global production of olive oil is forecast to
fall to 2.4 million tonnes, as a result of extreme weather. This is less than last year’s • All candidates must receive the same treatment. Examiners must mark the
harvest and well short of global demand of about 3 million tonnes.
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
first candidate in exactly the same way as they mark the last.
(a) Which one of the following is an effect of rationing in the price mechanism? • Mark schemes should be applied positively. Candidates must be rewarded
(1)
for what they have shown they can do rather than penalised for omissions.
A To remove a shortage therefore prices fall
• Examiners should mark according to the mark scheme not according to their
B To remove a shortage therefore prices rise
perception of where the grade boundaries may lie.
C To remove a surplus therefore prices fall • There is no ceiling on achievement. All marks on the mark scheme should be
D To remove a surplus therefore prices rise used appropriately.
(b) With reference to the information provided, explain whether the demand for olive • All the marks on the mark scheme are designed to be awarded. Examiners
oil within Italy is likely to be price elastic or price inelastic. should always award full marks if deserved, i.e. if the answer matches the
(3) 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.
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... ................................................................................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Total for Question 2 = 4 marks)
3
*P79810A0324* Turn over
Candidate surname Other names
Centre Number Candidate Number
Edexcel Level 3 GCE
Tuesday 12 May 2026
Morning (Time: 1 hour 30 minutes) Paper
reference 8EC0/01 Mark Scheme (Results)
Economics A
Advanced Subsidiary
PAPER 1: Introduction to Markets and Market Failure
Summer 2026
You must have: Total Marks
Source Booklet (enclosed)
Instructions Edexcel GCE AS Level in Economics
•• Use black ink or ball-point pen. tion to Markets and Market Failure
Fill in the boxes at the top of this page with your name,
centre number and candidate number. 8EC0_01
•• There are two sections in this question paper.
Answer all questions in Section A.
•• InAnswer
Section B, answer all of questions 6(a) to 6(e) and one question from 6(f) or 6(g).
the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 80.
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
P79810A
P:1/1/1/1/1/1/1
Education Ltd. *P79810A0124*
, 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 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 25 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. You may annotate and
include diagrams in your answers. qualifications websites at or .
Alternatively, you can get in touch with us using the details on our
1 The United States operates an economic system known as a ‘mixed economy’. The contact us page at
proportion of government spending relative to GDP was 36.8% in 2022.
(a) With reference to the information provided, explain one role of the state within a
mixed economy.
(3)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
helping people progress, everywhere
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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:
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Which one of the following is an advantage of a free market economy?
(1)
A All goods are produced at the social optimum position
B Maximisation of social welfare through central planning
C Signalling allows markets to allocate resources efficiently Summer 2026
Question Paper Log Number P79810A
D Under-provision of public goods Publication Code 8EC0_01_2606_MS
All the material in this publication is
(Total for Question 1 = 4 marks)
2
*P79810A0224*
, General Marking Guidance
2 Olive oil is seen as a necessity in Italy. Global production of olive oil is forecast to
fall to 2.4 million tonnes, as a result of extreme weather. This is less than last year’s • All candidates must receive the same treatment. Examiners must mark the
harvest and well short of global demand of about 3 million tonnes.
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
first candidate in exactly the same way as they mark the last.
(a) Which one of the following is an effect of rationing in the price mechanism? • Mark schemes should be applied positively. Candidates must be rewarded
(1)
for what they have shown they can do rather than penalised for omissions.
A To remove a shortage therefore prices fall
• Examiners should mark according to the mark scheme not according to their
B To remove a shortage therefore prices rise
perception of where the grade boundaries may lie.
C To remove a surplus therefore prices fall • There is no ceiling on achievement. All marks on the mark scheme should be
D To remove a surplus therefore prices rise used appropriately.
(b) With reference to the information provided, explain whether the demand for olive • All the marks on the mark scheme are designed to be awarded. Examiners
oil within Italy is likely to be price elastic or price inelastic. should always award full marks if deserved, i.e. if the answer matches the
(3) 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.
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... ................................................................................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Total for Question 2 = 4 marks)
3
*P79810A0324* Turn over
