2025 AQA AS ECONOMICS Paper 1 The Operation of Markets and Market Failure
Question Paper & Mark Scheme (Merged) Tuesday 13 May 2025 [VERIFIED]
, 2
Do not write
outside the
Section A
box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select as
shown.
0 1 Which one of the following would not be classified by an economist as a factor
of production?
[1 mark]
A Labour temporarily out of work
B Money in a firm’s bank account
C Non-agricultural land
D Risk-taking entrepreneurs
0 2 The central purpose of economic activity is the production of goods and services to satisfy
needs and wants.
Which of the following is one of the three key decisions that has to be taken to
achieve this?
[1 mark]
A How to achieve economies of scale
B What goods and services to produce
C Where to locate businesses
D Whether to maximise profit or sales
IB/M/Jun25/71351/1
, 3
Do not write
outside the
0 3 Figure 1 shows the market demand for electric cars. box
Figure 1
The shift of the market demand curve from D1 to D2 would most likely be caused by
[1 mark]
A a fall in the price of electric cars.
B a government subsidy to producers of electric cars.
C a marketing campaign promoting electric cars.
D a reduction in the price of petrol and diesel fuels.
0 4 A firm hopes to increase its market share by setting its prices lower than most of its
competitors.
What is the most likely reason for this strategy?
[1 mark]
A The firm has a licence that gives it a temporary monopoly
B The firm is a price taker in a very competitive market
C The firm is aiming to differentiate its products from its competitors
D The firm is aiming to increase its long-run profits
IB/M/Jun25/71351/1
, 4
Do not write
outside the
Turn over ►
IB/M/Jun25/71351/1
Question Paper & Mark Scheme (Merged) Tuesday 13 May 2025 [VERIFIED]
, 2
Do not write
outside the
Section A
box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select as
shown.
0 1 Which one of the following would not be classified by an economist as a factor
of production?
[1 mark]
A Labour temporarily out of work
B Money in a firm’s bank account
C Non-agricultural land
D Risk-taking entrepreneurs
0 2 The central purpose of economic activity is the production of goods and services to satisfy
needs and wants.
Which of the following is one of the three key decisions that has to be taken to
achieve this?
[1 mark]
A How to achieve economies of scale
B What goods and services to produce
C Where to locate businesses
D Whether to maximise profit or sales
IB/M/Jun25/71351/1
, 3
Do not write
outside the
0 3 Figure 1 shows the market demand for electric cars. box
Figure 1
The shift of the market demand curve from D1 to D2 would most likely be caused by
[1 mark]
A a fall in the price of electric cars.
B a government subsidy to producers of electric cars.
C a marketing campaign promoting electric cars.
D a reduction in the price of petrol and diesel fuels.
0 4 A firm hopes to increase its market share by setting its prices lower than most of its
competitors.
What is the most likely reason for this strategy?
[1 mark]
A The firm has a licence that gives it a temporary monopoly
B The firm is a price taker in a very competitive market
C The firm is aiming to differentiate its products from its competitors
D The firm is aiming to increase its long-run profits
IB/M/Jun25/71351/1
, 4
Do not write
outside the
Turn over ►
IB/M/Jun25/71351/1
