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Past Paper Questions for Microeconomics

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Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE

Economics A
Advanced
Paper 1: Markets and Business Behaviour

Tuesday 5 June 2018 – Afternoon Paper Reference

Time: 2 hours 9EC0/01
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.
• Section
There are three sections in this question paper. Answer all questions from
A and Section B. Answer one question from Section C.
• – there may bequestions
Answer the in the spaces provided
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.
• your answers if you have time at the end.
Check




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P52316A
©2018 Pearson Education Ltd.

1/1/1/1/1/1/1
*P52316A0140*

, 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 The diagram refers to production possibility frontiers for a country that produces
capital goods and consumer goods.



X
100

Output of
capital goods
W V U
50




Y Z
0 80 100 120 140 170
Output of consumer goods


Originally, the economy has a production possibility frontier shown by the line XY,
operating at point V. The production possibility frontier then moves to XZ, operating
at point U.
(a) Calculate the original and the new opportunity cost of producing 50 capital
goods. You are advised to show your working.
(2)

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*P52316A0240*

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(b) Which one of the following was the most likely cause of the movement in the
production possibility frontier from XY to XZ?
(1)

A A reduction in unemployment in consumer goods industries

B A rise in the cost of producing consumer goods

C An increase in demand for consumer goods

D A technological improvement in the production of consumer goods

(c) Explain one characteristic of the economy at position W.
(2)

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(Total for Question 1 = 5 marks)




*P52316A0340*
3
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, 2 The number of individual weekly ticket sales from UK National Lottery games
operated by Camelot was 73 million in the financial year 2015–2016.
The sale price of each lottery ticket was £2. This figure included 24 pence of tax
revenue on each ticket sold.
(a) Calculate the weekly revenue received by Camelot after paying the tax to the
government. You are advised to show your working.
(2)

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4
*P52316A0440*
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