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Centre number Candidate number
Surname
Forename(s)
Candidate signature
A-level
ECONOMICS
Paper 3 Economic principles and issues
Materials
For this paper you must have: For Examiner’s Use
• the insert Section Mark
• a calculator.
A
Instructions
• Answer all questions. B
• Use black ink or black ball-point pen. Pencil should only be used for
drawing. TOTAL
• Fill in the boxes at the top of this page.
• You will need to refer to the insert provided to answer Section B.
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• Do all rough work in this answer book. Cross through any work that you
do not want to be marked.
Information
• The maximum mark for this paper is 80.
• The marks for questions are shown in brackets.
• No deductions will be made for wrong answers.
*JUN187136301*
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2
Do not write
Section A outside the
box
Answer all questions in this section.
Only one answer per question is allowed.
For each answer 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 applies to merit goods?
A Their marginal private benefit is greater than their marginal social
benefit.
B They are likely to be provided by the market.
C They can only be supplied by the government.
D They have the characteristics of non-excludability and non-rivalry.
[1 mark]
0 2 At the start of the financial year, an economy’s national debt stands at £1000 billion.
Over the course of the year, the government plans to spend an extra £100 billion and
borrow an extra £40 billion.
If the government achieves its spending and borrowing targets, by the end of the financial
year the national debt will have increased by
A 4%
B 10%
C 14%
D 40%
[1 mark]
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3
Do not write
0 3 The diagram below shows the production possibility frontier for an economy that outside the
produces consumer goods and capital goods. The economy is initially operating at point box
X within its frontier.
If the economy now moves from point X to point Y on its frontier it will
A achieve both productive and allocative efficiency.
B benefit from improved economies of scale in the production of
both goods.
C increase its underlying trend rate of growth.
D obtain more consumer goods and capital goods at zero opportunity
cost.
[1 mark]
0 4 All other things being equal, an increase in the ratio of capital to labour resulting from an
increase in investment is most likely to lead to a
A decline in labour productivity.
B fall in the size of the labour force.
C negative demand-side shock to the economy.
D supply-side improvement.
[1 mark]
Turn over ►
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4
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0 5 The diagram below shows the demand curve (D) and two supply curves (S1 and S2) in outside the
box
the market for renewable energy.
The renewable energy market is initially in equilibrium at a price of OH. The government
then introduces a subsidy for renewable energy.
After the introduction of the subsidy, the total amount of money received by the producers
from both consumers and the government is
A OGME2
B OHLE2
C OHNME2
D OJKE2
[1 mark]
0 6 Which one of the following provides a reason for government intervention in a market?
A Firms in an oligopolistic market may limit price competition.
B Market failures can only be corrected by using regulations.
C Monopolistically competitive firms earn abnormal profits in
the long run.
D Public goods are excludable and rival.
[1 mark]
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Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signature
A-level
ECONOMICS
Paper 3 Economic principles and issues
Materials
For this paper you must have: For Examiner’s Use
• the insert Section Mark
• a calculator.
A
Instructions
• Answer all questions. B
• Use black ink or black ball-point pen. Pencil should only be used for
drawing. TOTAL
• Fill in the boxes at the top of this page.
• You will need to refer to the insert provided to answer Section B.
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• Do all rough work in this answer book. Cross through any work that you
do not want to be marked.
Information
• The maximum mark for this paper is 80.
• The marks for questions are shown in brackets.
• No deductions will be made for wrong answers.
*JUN187136301*
Downloaded by: Ariah |
7136/3
Distribution of this document is illegal
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
2
Do not write
Section A outside the
box
Answer all questions in this section.
Only one answer per question is allowed.
For each answer 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 applies to merit goods?
A Their marginal private benefit is greater than their marginal social
benefit.
B They are likely to be provided by the market.
C They can only be supplied by the government.
D They have the characteristics of non-excludability and non-rivalry.
[1 mark]
0 2 At the start of the financial year, an economy’s national debt stands at £1000 billion.
Over the course of the year, the government plans to spend an extra £100 billion and
borrow an extra £40 billion.
If the government achieves its spending and borrowing targets, by the end of the financial
year the national debt will have increased by
A 4%
B 10%
C 14%
D 40%
[1 mark]
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3
Do not write
0 3 The diagram below shows the production possibility frontier for an economy that outside the
produces consumer goods and capital goods. The economy is initially operating at point box
X within its frontier.
If the economy now moves from point X to point Y on its frontier it will
A achieve both productive and allocative efficiency.
B benefit from improved economies of scale in the production of
both goods.
C increase its underlying trend rate of growth.
D obtain more consumer goods and capital goods at zero opportunity
cost.
[1 mark]
0 4 All other things being equal, an increase in the ratio of capital to labour resulting from an
increase in investment is most likely to lead to a
A decline in labour productivity.
B fall in the size of the labour force.
C negative demand-side shock to the economy.
D supply-side improvement.
[1 mark]
Turn over ►
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4
Do not write
0 5 The diagram below shows the demand curve (D) and two supply curves (S1 and S2) in outside the
box
the market for renewable energy.
The renewable energy market is initially in equilibrium at a price of OH. The government
then introduces a subsidy for renewable energy.
After the introduction of the subsidy, the total amount of money received by the producers
from both consumers and the government is
A OGME2
B OHLE2
C OHNME2
D OJKE2
[1 mark]
0 6 Which one of the following provides a reason for government intervention in a market?
A Firms in an oligopolistic market may limit price competition.
B Market failures can only be corrected by using regulations.
C Monopolistically competitive firms earn abnormal profits in
the long run.
D Public goods are excludable and rival.
[1 mark]
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