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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 18 May 2020
Morning (Time: 2 hours) Paper Reference 9EC0/01
Economics A
Advanced
Paper 1: Markets and Business Behaviour
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centrethe
Fill in boxes at the top of this page with your name,
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
P62360A
©2020 Pearson Education Ltd.
1/1/1/1/1/1/1/1/
*P62360A0132*
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Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
SECTION A
Answer ALL questions. Write your answers in the spaces provided.
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 Fuel duty is an excise tax imposed on the sale of petrol, included in the price paid by
consumers, set at 58 pence per litre.
(Source: https://www.gov.uk/tax-on-shopping/fuel-duty)
(a) Draw a supply and demand diagram to show the incidence of a specific petrol tax
on consumers and producers.
(4)
(b) The indirect tax on fuel is increased in a market in which the price elasticity of
demand is −0.1. Which one of the following is the most likely effect on consumer
and producer surplus?
(1)
A Consumer surplus and producer surplus both decrease
B Consumer surplus and producer surplus both increase
C Consumer surplus decreases and producer surplus increases
D Consumer surplus increases and producer surplus decreases
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(Total for Question 1 = 5 marks)
Distribution of this document is illegal
2
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
2 The external benefits of higher education include increased tax revenue, faster
economic growth, greater innovation and labour market flexibility.
(Source adapted from: https://www.timeshighereducation.com/news/higher-education-its-
good-for-you-and-society/2008681.article#survey-answer)
(a) Draw an externalities diagram to show the likely impact of the consumption of
higher education.
(4)
(b) On average, in the UK, a working-age graduate earns approximately £10 000 more
per year than a non-graduate.
(Source adapted from: https://assets.publishing.service.gov.uk/government/uploads/
system/uploads/attachment_data/file/701720/GLMS_2017.pdf )
This suggests a university degree provides a substantial
(1)
A external benefit
B external cost
C private benefit
D social cost
(Total for Question 2 = 5 marks)
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Distribution of this document is illegal
3
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
3 The EU tradable pollution permits scheme is expected to become more effective by
2020, due to recent reductions in the number of tradable pollution permits.
(Source adapted from: https://ec.europa.eu/clima/policies/ets_en)
(a) Explain one likely effect of reducing the number of tradable pollution permits.
(4)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) Regulation of firms that pollute is likely to be a problem because it
(1)
A allows firms to use price signals
B creates unintended consequences
C fills information gaps for businesses
D means lower administrative costs
(Total for Question 3 = 5 marks)
Downloaded by: loveavril06 |
Distribution of this document is illegal
4
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 18 May 2020
Morning (Time: 2 hours) Paper Reference 9EC0/01
Economics A
Advanced
Paper 1: Markets and Business Behaviour
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centrethe
Fill in boxes at the top of this page with your name,
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
P62360A
©2020 Pearson Education Ltd.
1/1/1/1/1/1/1/1/
*P62360A0132*
Downloaded by: loveavril06 |
Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
SECTION A
Answer ALL questions. Write your answers in the spaces provided.
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 Fuel duty is an excise tax imposed on the sale of petrol, included in the price paid by
consumers, set at 58 pence per litre.
(Source: https://www.gov.uk/tax-on-shopping/fuel-duty)
(a) Draw a supply and demand diagram to show the incidence of a specific petrol tax
on consumers and producers.
(4)
(b) The indirect tax on fuel is increased in a market in which the price elasticity of
demand is −0.1. Which one of the following is the most likely effect on consumer
and producer surplus?
(1)
A Consumer surplus and producer surplus both decrease
B Consumer surplus and producer surplus both increase
C Consumer surplus decreases and producer surplus increases
D Consumer surplus increases and producer surplus decreases
Downloaded by: loveavril06 |
(Total for Question 1 = 5 marks)
Distribution of this document is illegal
2
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
2 The external benefits of higher education include increased tax revenue, faster
economic growth, greater innovation and labour market flexibility.
(Source adapted from: https://www.timeshighereducation.com/news/higher-education-its-
good-for-you-and-society/2008681.article#survey-answer)
(a) Draw an externalities diagram to show the likely impact of the consumption of
higher education.
(4)
(b) On average, in the UK, a working-age graduate earns approximately £10 000 more
per year than a non-graduate.
(Source adapted from: https://assets.publishing.service.gov.uk/government/uploads/
system/uploads/attachment_data/file/701720/GLMS_2017.pdf )
This suggests a university degree provides a substantial
(1)
A external benefit
B external cost
C private benefit
D social cost
(Total for Question 2 = 5 marks)
Downloaded by: loveavril06 |
Distribution of this document is illegal
3
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
3 The EU tradable pollution permits scheme is expected to become more effective by
2020, due to recent reductions in the number of tradable pollution permits.
(Source adapted from: https://ec.europa.eu/clima/policies/ets_en)
(a) Explain one likely effect of reducing the number of tradable pollution permits.
(4)
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ............................................................................................................................................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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(b) Regulation of firms that pollute is likely to be a problem because it
(1)
A allows firms to use price signals
B creates unintended consequences
C fills information gaps for businesses
D means lower administrative costs
(Total for Question 3 = 5 marks)
Downloaded by: loveavril06 |
Distribution of this document is illegal
4
