AQA GCSE ECONOMICS 8136/1 Paper 1 How Markets Work Version: 1.0 Final *JUN* IB/H/Jun23/E7 8136/1QUESTION PAPER & MARKING SCHEME/ [MERGED] Marl( scheme June 2023

GCSE ECONOMICS 8136/1 Paper 1 How Markets Work Version: 1.0 Final *JUN* IB/H/Jun23/E7 8136/1 For Examiner’s Use Section Mark A B TOTAL Wednesday 17 May 2023 Afternoon Time allowed: 1 hour 45 minutes Materials You will need no other materials. You may use a calculator. Instructions • Use black ink or black ball-point pen. • Fill in the boxes at the top of this page. • Answer all questions. • You must answer the questions in the spaces provided. Do not write on blank pages. • If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s). • Do all rough work in this book. Cross through any work you do not want to be marked. Information • The marks for questions are shown in brackets. • The maximum mark for this paper is 80. • Questions should be answered in continuous prose. You will be assessed on your ability to: – use good English – organise information clearly – use specialist vocabulary where appropriate. GCSE ECONOMICS Paper 1 How Markets Work Please write clearly in block capitals. Centre number Candidate number Surname Forename(s) Candidate signature I declare this is my own work. 2 *02* IB/H/Jun23/8136/1 Section A Answer all questions in the spaces provided. For questions with four responses, 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 of the following best describes the equilibrium price in a market? [1 mark] A Where all consumers are satisfied B Where profit is maximised C Where quantity supplied equals quantity demanded D Where quantity supplied exceeds quantity demanded 0 2 Which of the following could lead to a reduction in the quantity supplied of a product? [1 mark] A A decrease in demand for the product B A decrease in the cost of making the product C An increase in the popularity of the product D An increase in the price of the product Do not write outside the box 3 *03* Turn over ► IB/H/Jun23/8136/1 Do not write outside the box 0 3 A firm can reduce its average costs in the long run by making effective use of a large machine. This is an example of [1 mark] A financial economies of scale. B purchasing economies of scale. C risk-bearing economies of scale. D technical economies of scale. 0 4 Which of the following would be included in the tertiary sector of an economy? [1 mark] A A farm B A leisure centre C Construction D Fishing Turn over for the next question 4 *04* IB/H/Jun23/8136/1 Do not write outside the box 0 5 Which of the following is an example of a variable cost? [1 mark] A Insurance B Raw materials C Rent D Salaries 0 6 In which jobs are earnings likely to be highest? [1 mark] A In those where it is easy to replace workers B In those where workers are paid weekly C In those with an excess supply of labour D In those with long training periods 0 7 Which of the following is a reason for a firm having price elastic supply? [1 mark] A A high amount of spare capacity B A low number of substitutes C High consumer incomes D Low stocks of raw materials 5 *05* Turn over ► IB/H/Jun23/8136/1 Do not write outside the 0 8 box A 5% decrease in the price of newspapers leads to a 4% increase in the quantity demanded. What is the price elasticity of demand for newspapers? [1 mark] A –1.25 B –0.8 C +0.8 D +1.25 0 9 Which of the following are most likely to be substitutes for each other? [1 mark] A Books and tablet computers B Cars and petrol C Coffee and sugar D Torches and batteries Turn over for the next question 6 *06* IB/H/Jun23/8136/1 Do not write outside the 1 0 box Table 1 shows the quantities of wood supplied and demanded at various prices. Table 1 Price (£ per tonne) Quantity demanded (tonnes) Quantity supplied (tonnes) 25 150 50 50 125 75 What is the excess supply at a price of £100 per tonne? [1 mark] A 25 tonnes B 50 tonnes C 75 tonnes D 100 tonnes 7 *07* Turn over ► IB/H/Jun23/8136/1 Do not write outside the box 1 1 State two different examples of the factor of production known as land. [2 marks] Example 1 Example 2 1 2 Explain one reason why an individual consumer may have to make an economic choice. [2 marks] 1 3 Explain one benefit of specialisation for an individual worker. [2 marks] Turn over for the next question 8 *08* IB/H/Jun23/8136/1 Do not write outside the box 1 4 Table 2 shows revenue and cost data relating to Paul’s surfboard-making business. Table 2 Number of surfboards produced and sold Total revenue (£) Total cost (£) 0 0 1500 1 4 . 1 Using Table 2, calculate the average fixed cost of making 15 surfboards. [2 marks] Answer £ 1 4 . 2 Explain one business objective Paul might have. [2 marks] 9 *09* Turn over ► IB/H/Jun23/8136/1 Do not write outside the Figure 1 – Price elasticity of demand for two products box Loaf of bread –0.2 Car –2.5 1 5 Using Figure 1, analyse possible reasons for the differences in price elasticity of demand for the two products. [6 marks] Extra space 10 *10* IB/H/Jun23/8136/1 Do not write outside the 1 6 State box two features of a non-competitive market. [2 marks] 1 2 1 7 Explain one possible disadvantage to a firm of increasing its scale of output. [2 marks] 1 8 Explain one key economic decision for a producer. [2 marks] 11 *11* Turn over ► IB/H/Jun23/8136/1 Do not write outside the box 1 9 Figure 2 shows monthly pay data for Tharun, who works as a veterinary surgeon. Figure 2 Gross pay £2500 National Insurance contributions £270 Income tax £350 1 9 . 1 Using Figure 2, calculate Tharun’s annual net pay. [2 marks] 1 9 . 2 Explain one reason why Tharun may earn more than a cleaner. [2 marks] Turn over for the next question 12 *12* IB/H/Jun23/8136/1 Do not write outside the box 2 0 Draw and label the effects of an increase in the price of petrol cars on the market for petrol. [3 marks] Market for