Oxford Cambridge and RSA
GCSE
Economics
H060/01: Microeconomics
*1329248307*
AS Level Tuesday 13 May 2025 – Morning
INSTRUCTIONS
• Use black ink. You can use an HB pencil, but only for graphs and diagrams.
• Write your answer to each question in the space provided. If you need extra space use
the lined pages at the end of this booklet. The question numbers must be clearly shown.
• Answer all the questions in Section A and Section B and one question in Section C.
INFORMATION
• The total mark for this paper is 60.
• The marks for each question are shown in brackets [ ].
• Quality of extended response will be assessed in questions marked with an asterisk (*).
• This document has 20 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2025 [601/4801/9] DC (CJ/CB) 337418/3
OCR is an exempt Charity
Turn over
Section A
Write your answer for each question in the box provided.
1 Whose objective is it to raise tax revenue?
A Employees
B Firms
C Government D Households
Your answer
2 The table shows the production possibility curve for a country that produces capital
and consumer goods.
Capital goods (million Consumer goods
units) (million units)
, 2
0 50
10 35
20 23
30 8
40 0
What is the opportunity cost of moving from 20 million units of capital goods to
producing 30 million units of capital goods?
A 10 million capital goods
B 20 million capital goods
C 8 million consumer goods
D 15 million consumer goods
Your answer
3 What is most likely to occur, if the price of a smartphone fell from £950 to £800?
A Demand curve shifts right
B Extension in demand
C Extension in supply
D Supply curve shifts left
Your answer [1] 4 Which of these would cause a shift outwards of the
production possibility curve?
A Decrease in productivity
B Increase in unemployment
C Technological improvements
D Underutilisation of machinery
Your answer
5 A bottled water firm sells 600 bottles of water every week at a price of 80p.
The price elasticity of demand for bottled water is –1.5.
What is the change in weekly sales revenue if the firm increases the price to £1.20?
A £60
B £240
C £300
D £600
Your answer
6 A change in price will usually result in a change in quantity demanded.
The size of this change will be determined by the:
A elasticity of demand
© OCR 2025
, 3
B opportunity cost of the change
C producer surplus available
D profit gained from the change
Your answer [1] 7 The diagram shows a shift in the supply curve for
wheat production.
Price S1
S
P1
P
D
0 q1 q
Quantity
What could have caused this shift from S to S1?
A Increase in price
B Increase in productivity
C Increase in subsidy
D Increase in tax
Your answer
8 What is a reward for labour?
A Interest
B Profit
C Rent
D Wages
Your answer
9 What is an example of market failure?
A Buffer Scheme
B Pollution
C Subsidies D Taxes
Your answer [1] 10 What will be an incentive for consumers to reduce
consumption of orange juice?
Increase in the price of:
A apple juice
B apples
© OCR 2025 Turn over
, 4
C orange juice D oranges
Your answer
11 What is one of the features of a planned economy?
A Capitalism
B Government intervention
C Invisible hand
D Market clearing price
Your answer
12 The table shows the price of good A and the quantity demanded for good B, a
competitive good.
Price of Good A Quantity Demanded of Good B
£160 500
£200 560
What is the cross elasticity of demand?
A 0.48
B 0.54
C 0.67
D 2.08
Your answer [1] 13 Government intervention in the market can result in
government failure due to a more inefficient allocation of resources.
What is this most likely to result in?
A Fewer public goods
B Greater welfare loss
C Higher levels of taxation
D Less information provision
Your answer
14 Productive efficiency is when a firm is:
A maximising the total costs of production
B maximising its profits and revenue
C producing goods and services that match consumer preferences
D producing maximum outputs from the given inputs
Your answer
15 Opportunity cost is useful as it shows the value of:
A all the choices available
© OCR 2025
GCSE
Economics
H060/01: Microeconomics
*1329248307*
AS Level Tuesday 13 May 2025 – Morning
INSTRUCTIONS
• Use black ink. You can use an HB pencil, but only for graphs and diagrams.
• Write your answer to each question in the space provided. If you need extra space use
the lined pages at the end of this booklet. The question numbers must be clearly shown.
• Answer all the questions in Section A and Section B and one question in Section C.
INFORMATION
• The total mark for this paper is 60.
• The marks for each question are shown in brackets [ ].
• Quality of extended response will be assessed in questions marked with an asterisk (*).
• This document has 20 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2025 [601/4801/9] DC (CJ/CB) 337418/3
OCR is an exempt Charity
Turn over
Section A
Write your answer for each question in the box provided.
1 Whose objective is it to raise tax revenue?
A Employees
B Firms
C Government D Households
Your answer
2 The table shows the production possibility curve for a country that produces capital
and consumer goods.
Capital goods (million Consumer goods
units) (million units)
, 2
0 50
10 35
20 23
30 8
40 0
What is the opportunity cost of moving from 20 million units of capital goods to
producing 30 million units of capital goods?
A 10 million capital goods
B 20 million capital goods
C 8 million consumer goods
D 15 million consumer goods
Your answer
3 What is most likely to occur, if the price of a smartphone fell from £950 to £800?
A Demand curve shifts right
B Extension in demand
C Extension in supply
D Supply curve shifts left
Your answer [1] 4 Which of these would cause a shift outwards of the
production possibility curve?
A Decrease in productivity
B Increase in unemployment
C Technological improvements
D Underutilisation of machinery
Your answer
5 A bottled water firm sells 600 bottles of water every week at a price of 80p.
The price elasticity of demand for bottled water is –1.5.
What is the change in weekly sales revenue if the firm increases the price to £1.20?
A £60
B £240
C £300
D £600
Your answer
6 A change in price will usually result in a change in quantity demanded.
The size of this change will be determined by the:
A elasticity of demand
© OCR 2025
, 3
B opportunity cost of the change
C producer surplus available
D profit gained from the change
Your answer [1] 7 The diagram shows a shift in the supply curve for
wheat production.
Price S1
S
P1
P
D
0 q1 q
Quantity
What could have caused this shift from S to S1?
A Increase in price
B Increase in productivity
C Increase in subsidy
D Increase in tax
Your answer
8 What is a reward for labour?
A Interest
B Profit
C Rent
D Wages
Your answer
9 What is an example of market failure?
A Buffer Scheme
B Pollution
C Subsidies D Taxes
Your answer [1] 10 What will be an incentive for consumers to reduce
consumption of orange juice?
Increase in the price of:
A apple juice
B apples
© OCR 2025 Turn over
, 4
C orange juice D oranges
Your answer
11 What is one of the features of a planned economy?
A Capitalism
B Government intervention
C Invisible hand
D Market clearing price
Your answer
12 The table shows the price of good A and the quantity demanded for good B, a
competitive good.
Price of Good A Quantity Demanded of Good B
£160 500
£200 560
What is the cross elasticity of demand?
A 0.48
B 0.54
C 0.67
D 2.08
Your answer [1] 13 Government intervention in the market can result in
government failure due to a more inefficient allocation of resources.
What is this most likely to result in?
A Fewer public goods
B Greater welfare loss
C Higher levels of taxation
D Less information provision
Your answer
14 Productive efficiency is when a firm is:
A maximising the total costs of production
B maximising its profits and revenue
C producing goods and services that match consumer preferences
D producing maximum outputs from the given inputs
Your answer
15 Opportunity cost is useful as it shows the value of:
A all the choices available
© OCR 2025
