Pearson Edexcel Level 3 GCE Economics B Advanced PAPER 1: Markets and how they
work QP MAY 2024
[Document subtitle]
[Author name] [Date] [Course title]
, Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Wednesday 15 May 2024
reference 9EB0/01
Morning (Time: 2 hours) Paper
Economics B
Advanced
PAPER 1: Markets and how they work
You do not need any other materials. Total Marks
Pearson Edexcel Level 3 GCE Economics B Advanced PAPER 1: Markets and how they work QP
MAY 2024
Instructions
• Use black ink or ball-point pen.
• Fill in the boxes at the top of this page with your name,
• centre number and candidate number.
• Answer all questions.
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.
• Try to answer every question.
• Check your answers if you have time at the end.
Turn over
P80957A
©2024 Pearson Education Ltd.
*P80957A0128*
F:1/1/1/1/
, Answer ALL questions.
SECTION A
AREATHISINWRITENO
Read the following extracts (A–E) before answering Question 1.
Write your answers in the spaces provided.
Extract A
TUI Group lose market share to Jet2holidays
TDO
The TUI Group (TUI) has finally responded to being overtaken by Jet2holidays as
the UK’s largest tour operator.
TUI Chief Executive Sebastian Ebel said: “We want to be the market leader not only in
numbers but also in quality. We want to grow stronger than our competitors.” 5
The firm aims to take market share from rivals by broadening its product offering
and looking beyond its traditional core package‑ holiday customers. It is targeting
NOTDO
the larger and higher growth segments of the leisure market, such as
accommodation only, flight only, car hire, tours and experiences.
Sebastian Ebel referred to these potential new customers as ‘energised adventurers’ and 10
‘travelistas’. Energised adventurers are older, confident, more affluent and adventurous
E
T
I
R
W
N
I
S
I
H
T
holidaymakers interested in culture and exploration. Travelistas are younger, independent
and adventurous travellers who spend less on a holiday but travel more often.
AREA
TUI reported record holiday bookings for summer 2023 and 2024 now that global
travel restrictions have been lifted for consumers. 15
(Source: adapted from https://travelweekly.co.uk/news/air/jet2-has-done-very-well-
filling-gap-thomas-cook-left-says-tui-chief)
Extract B
Statement of comprehensive income of TUI Group Q3 2023 and Q3 2022
AREATHISINWRITENOTDO
Q3 2023 (€m) Q3 2022 (€m)
Revenue 5 286.0 4 433.2
Cost of sales 5 018.4 4 313.4
Gross profit 267.6 119.8
Operating profit/(loss) 52.5 (331.2)
(Source: adapted from: https://www.tuigroup.com/en-
en/investors/news/2023/ ir-news/20230809)
2
, Extract C
TUI hails return to profit but warns of €25m additional costs from Rhodes’ wildfires
DO NOT WRITE IN THIS AREA
The package holiday operator TUI has enjoyed its first profitable April to June since
before the global health crisis but warned that it expects €25m additional costs from last
month’s wildfires in Rhodes. TUI had to evacuate 8,000 customers which represented 20%
of its customers on the island. 5
“The financial impact of the wildfires in recent weeks covering cancellations,
customer compensation, repatriation flights and welfare costs has added €25m
additional costs to our full year 2023 results,” the company said.
TUI said that Rhodes accounted for about 5% of its summer holiday offering this year,
and while bookings had been affected straight after the wildfires in Rhodes and southern 10
Europe, they had recovered quickly. It predicted summer bookings would still be 6%
higher than last year.
(Source adapted from: https://www.theguardian.com/business/2023/aug/09/tui-
hails-return-to-profit-but-warns-of-25m-hit-from-rhodes-wildfires)
DO NOT WRITE IN THIS AREA
Extract D
UK Interest (base) Rate (%) January 2022 – August 2023
(%) Base Rate 5.25%
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
DO NOT WRITE IN THIS AREA
1.5
1.0
0.5
0.0
Jan Mar May Jul Sep Nov Jan Mar May Jul
2022 2023
(Source: adapted from https://www.bankofengland.co.uk/monetary-policy/the-interest-
rate-bank-rate)
3
*P80957A0328*
work QP MAY 2024
[Document subtitle]
[Author name] [Date] [Course title]
, Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Wednesday 15 May 2024
reference 9EB0/01
Morning (Time: 2 hours) Paper
Economics B
Advanced
PAPER 1: Markets and how they work
You do not need any other materials. Total Marks
Pearson Edexcel Level 3 GCE Economics B Advanced PAPER 1: Markets and how they work QP
MAY 2024
Instructions
• Use black ink or ball-point pen.
• Fill in the boxes at the top of this page with your name,
• centre number and candidate number.
• Answer all questions.
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.
• Try to answer every question.
• Check your answers if you have time at the end.
Turn over
P80957A
©2024 Pearson Education Ltd.
*P80957A0128*
F:1/1/1/1/
, Answer ALL questions.
SECTION A
AREATHISINWRITENO
Read the following extracts (A–E) before answering Question 1.
Write your answers in the spaces provided.
Extract A
TUI Group lose market share to Jet2holidays
TDO
The TUI Group (TUI) has finally responded to being overtaken by Jet2holidays as
the UK’s largest tour operator.
TUI Chief Executive Sebastian Ebel said: “We want to be the market leader not only in
numbers but also in quality. We want to grow stronger than our competitors.” 5
The firm aims to take market share from rivals by broadening its product offering
and looking beyond its traditional core package‑ holiday customers. It is targeting
NOTDO
the larger and higher growth segments of the leisure market, such as
accommodation only, flight only, car hire, tours and experiences.
Sebastian Ebel referred to these potential new customers as ‘energised adventurers’ and 10
‘travelistas’. Energised adventurers are older, confident, more affluent and adventurous
E
T
I
R
W
N
I
S
I
H
T
holidaymakers interested in culture and exploration. Travelistas are younger, independent
and adventurous travellers who spend less on a holiday but travel more often.
AREA
TUI reported record holiday bookings for summer 2023 and 2024 now that global
travel restrictions have been lifted for consumers. 15
(Source: adapted from https://travelweekly.co.uk/news/air/jet2-has-done-very-well-
filling-gap-thomas-cook-left-says-tui-chief)
Extract B
Statement of comprehensive income of TUI Group Q3 2023 and Q3 2022
AREATHISINWRITENOTDO
Q3 2023 (€m) Q3 2022 (€m)
Revenue 5 286.0 4 433.2
Cost of sales 5 018.4 4 313.4
Gross profit 267.6 119.8
Operating profit/(loss) 52.5 (331.2)
(Source: adapted from: https://www.tuigroup.com/en-
en/investors/news/2023/ ir-news/20230809)
2
, Extract C
TUI hails return to profit but warns of €25m additional costs from Rhodes’ wildfires
DO NOT WRITE IN THIS AREA
The package holiday operator TUI has enjoyed its first profitable April to June since
before the global health crisis but warned that it expects €25m additional costs from last
month’s wildfires in Rhodes. TUI had to evacuate 8,000 customers which represented 20%
of its customers on the island. 5
“The financial impact of the wildfires in recent weeks covering cancellations,
customer compensation, repatriation flights and welfare costs has added €25m
additional costs to our full year 2023 results,” the company said.
TUI said that Rhodes accounted for about 5% of its summer holiday offering this year,
and while bookings had been affected straight after the wildfires in Rhodes and southern 10
Europe, they had recovered quickly. It predicted summer bookings would still be 6%
higher than last year.
(Source adapted from: https://www.theguardian.com/business/2023/aug/09/tui-
hails-return-to-profit-but-warns-of-25m-hit-from-rhodes-wildfires)
DO NOT WRITE IN THIS AREA
Extract D
UK Interest (base) Rate (%) January 2022 – August 2023
(%) Base Rate 5.25%
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
DO NOT WRITE IN THIS AREA
1.5
1.0
0.5
0.0
Jan Mar May Jul Sep Nov Jan Mar May Jul
2022 2023
(Source: adapted from https://www.bankofengland.co.uk/monetary-policy/the-interest-
rate-bank-rate)
3
*P80957A0328*
