Edexcel a level economics b question paper 1 june 2023

Please check the examination details below before entering your candidate information Candidate surname Other names Centre Number Candidate Number Pearson Edexcel Level 3 GCE Thursday 18 May 2023 Morning (Time: 2 hours) Paper reference 9EB0/01 Total Marks Economics B Advanced PAPER 1: Markets and how they work You do not need any other materials. 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.*P72977A0228* DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA 2  Answer ALL questions. SECTION A Read the following extracts (A–E) before answering Question 1. Write your answers in the spaces provided. Extract A Competition watchdog to review UK music industry over power of big firms The competition watchdog, the Competition and Markets Authority (CMA), is launching a review of the UK music industry. This will address concerns about the power of big music firms and ensure that the music industry is competitive, thriving and works in the interests of the consumer. Andrea Coscelli, chief executive of the CMA, said: “Over the past decade, the music industry has evolved almost beyond recognition, with streaming now accounting for more than 80% of all music listened to in the UK. Whether you are into Bowie, Beethoven or Beyoncé, most of us now choose to stream our favourite music. A market study will help us to understand these radical changes and build a view as to whether competition in this industry is working well or whether further action needs to be taken.” Music firms have argued that competition remains fierce in the UK music industry, which has produced global artists such as Adele, Ed Sheeran and Coldplay, while many lesser known British artists are thriving in the streaming age. The rise of streaming platforms, such as Spotify and Apple Music, has triggered an international debate over who benefits from the money generated by the boom in digital music. (Source: adapted from 41842a1cab8b/) 5 10 15 *P72977A0328* Turn over 3 DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA Extract B Selected financial information for Spotify for the year end 30 December 2020 and 2021 2021 (€m) 2020 (€m) Revenue Gross profit Operating profit/(loss) 94 (293) Research and development (R&D) 912 837 (Source: adapted from Extract C Spotify’s pricing structure Spotify is a music streaming platform that gives users access to a large catalogue of music. It offers two types of access: a basic free service, known as ‘freemium’ with advertisements and an unlimited premium service without advertisements for a subscription fee. The premium version of Spotify offers uninterrupted access to music across all devices, including smartphones, tablets and televisions. The premium version enables downloading of songs to devices for offline listening and high-quality audio. The premium version is available at varying monthly subscription fees as follows: • Students £5.99 • Individuals £9.99 • Couples £13.99 • Family £16.99. (Source: adapted from 5 10*P72977A0428* DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA 4  Extract D This Is Music 2021 Report This Is Music is the annual economic study by UK Music and its members. In 2021 it found: Number employed in the music industry 197,000 128,000 Music industry’s economic contribution £5.8bn £3.1bn Music exports £2.9bn £2.3bn Glastonbury was among hundreds of festivals and live music events cancelled after restrictions were imposed in March 2020. The impact was felt right across the industry as studios and venues were forced to close, and musicians and crew were unable to work. In an industry where three-quarters are self-employed, many were not covered by government support schemes. This resulted in thousands of music creators, crew and others leaving the industry. UK Music is calling on the UK Government to implement tax incentives for the music industry to stimulate growth and jobs. This includes a reduction in value