A-LEVEL EDEXCEL PAPER 1 PURE
MATHEMATICS June 2024 MARK SCHEME
(9MA0/01)
Economics - answerThe study of the allocation of scarce resources.
Economic Goods - answerResources that are scarce.
Short Run - answerA time period where at least one factor of production is fixed.
Long Run - answerA time period where all factors of production are variable.
Productivity - answerThe output per unit of input.
The Economic Problem - answerResources are scarce but wants are infinite.
Scarcity - answerThe world's resources are limited, there are only limited amounts of
land, water, oil, food, etc..
Therefore, resources are scarce.
Free Goods - answerGoods that are unlimited in supply and therefore have no
opportunity cost.
Economic Agents - answerConsumer, Business and Governments.
Agents involved in Economic transactions.
Production Possibility Frontier - answerThe maximum potential output of a combination
of goods an economy can achieve when all its resources are fully and efficiently
employed, given the level of technology.
Opportunity Cost - answerThe next best alternative foregone.
Economic Growth - answerIncrease an economy's productive potential.
Capital Goods - answerGoods intended for use in production, rather than by
consumers.
,Consumer Goods - answerGoods designed for use by final consumers.
Renewable Resources - answerA resource whose stock level can be replenished
naturally over a period of time.
Non-renewable Resources - answerA resource whose stock level decreases over time
as it is consumed.
Ceteris Paribus - answer'All other things (factors) remaining the same'
The assumption that all other variables within a model remain constant whilst the
change is being considered.
Positive Statement - answerA statement based on facts which can be tested as true or
false and are value-free.
Normative Statement - answerA statement based on value judgements which cannot be
tested as true or false.
Adam Smith - answerThe Father of Economics;
- The Invisible Hand (workings of the Price Mechanism)
- Specialisation
- Division of Labour
Division of Labour - answerSpecialisation of workers on specific tasks in the production
process.
Specialisation - answerThe process of breaking down the production process into steps
and then each worker is assigned a step. This would then increase labour productivity
(Output per Worker).
Barter - answerAn exchange of goods/services for other goods/services.
- Does not involve money.
- Double coincidence of wants.
Money - answerAnything which is acceptable to a wide number of people and
organisations as payment for goods and services.
Free Market Economy - answerWhere all resources are privately owned and allocated
via the price mechanism. There is minimal government intervention.
Command Economy - answerWhere there is public ownership of resources and these
are allocated by the government.
Mixed Economy - answerWhere some resources are owned and allocated by the
private sector and some by the public sector.
, Market - answerA channel where goods and services are exchanged.
Utility - answerThe capacity of a good or service to satisfy some human want.
Rational Decision Making - answerWhere consumers allocate their expenditure on
goods and services to maximize utility, and producers allocate their resources to
maximize profits.
Demand - answerThe quantity of goods or services that will be bought at any given
price over a period of time.
Demand Curve - answerShows the quantity of a good or service that would be bought
over a range of different price levels in a given period of time.
Slopes downward - Price and Quantity have an inverse (negative) relationship.
Marginal Utility - answerThe additional satisfaction that a consumer gains for consuming
one additional unit of a product.
Diminishing Marginal Utility - answerAs successive units of a good are consumed, the
utility gained from each extra unit will fall.
% Change - answery2 - y1 / y1 × 100
Price Elasticity of Demand (PED) - answerThe responsiveness of demand to changes in
price.
The value is always negative.
% ∆QD / % ∆P × 100
Unitary Price Elasticity (Ped) - answerPed = 1
Perfectly Price Inelastic (Ped) - answerPed = 0
Price Inelastic (Ped) - answerPed is < 1
Perfectly Price Elastic (Ped) - answerPed = ∞
Price Elastic (Ped) - answerPed is > 1
Total Revenue - answerPrice × Quantity
Income Elasticity of Demand (YED) - answerThe responsiveness of demand to changes
in income.
%∆QD / %∆Y × 100
Negative - Inferior Good (Y increases, QD decreases)
Positive - Normal Good (Y increases, QD increases).
MATHEMATICS June 2024 MARK SCHEME
(9MA0/01)
Economics - answerThe study of the allocation of scarce resources.
Economic Goods - answerResources that are scarce.
Short Run - answerA time period where at least one factor of production is fixed.
Long Run - answerA time period where all factors of production are variable.
Productivity - answerThe output per unit of input.
The Economic Problem - answerResources are scarce but wants are infinite.
Scarcity - answerThe world's resources are limited, there are only limited amounts of
land, water, oil, food, etc..
Therefore, resources are scarce.
Free Goods - answerGoods that are unlimited in supply and therefore have no
opportunity cost.
Economic Agents - answerConsumer, Business and Governments.
Agents involved in Economic transactions.
Production Possibility Frontier - answerThe maximum potential output of a combination
of goods an economy can achieve when all its resources are fully and efficiently
employed, given the level of technology.
Opportunity Cost - answerThe next best alternative foregone.
Economic Growth - answerIncrease an economy's productive potential.
Capital Goods - answerGoods intended for use in production, rather than by
consumers.
,Consumer Goods - answerGoods designed for use by final consumers.
Renewable Resources - answerA resource whose stock level can be replenished
naturally over a period of time.
Non-renewable Resources - answerA resource whose stock level decreases over time
as it is consumed.
Ceteris Paribus - answer'All other things (factors) remaining the same'
The assumption that all other variables within a model remain constant whilst the
change is being considered.
Positive Statement - answerA statement based on facts which can be tested as true or
false and are value-free.
Normative Statement - answerA statement based on value judgements which cannot be
tested as true or false.
Adam Smith - answerThe Father of Economics;
- The Invisible Hand (workings of the Price Mechanism)
- Specialisation
- Division of Labour
Division of Labour - answerSpecialisation of workers on specific tasks in the production
process.
Specialisation - answerThe process of breaking down the production process into steps
and then each worker is assigned a step. This would then increase labour productivity
(Output per Worker).
Barter - answerAn exchange of goods/services for other goods/services.
- Does not involve money.
- Double coincidence of wants.
Money - answerAnything which is acceptable to a wide number of people and
organisations as payment for goods and services.
Free Market Economy - answerWhere all resources are privately owned and allocated
via the price mechanism. There is minimal government intervention.
Command Economy - answerWhere there is public ownership of resources and these
are allocated by the government.
Mixed Economy - answerWhere some resources are owned and allocated by the
private sector and some by the public sector.
, Market - answerA channel where goods and services are exchanged.
Utility - answerThe capacity of a good or service to satisfy some human want.
Rational Decision Making - answerWhere consumers allocate their expenditure on
goods and services to maximize utility, and producers allocate their resources to
maximize profits.
Demand - answerThe quantity of goods or services that will be bought at any given
price over a period of time.
Demand Curve - answerShows the quantity of a good or service that would be bought
over a range of different price levels in a given period of time.
Slopes downward - Price and Quantity have an inverse (negative) relationship.
Marginal Utility - answerThe additional satisfaction that a consumer gains for consuming
one additional unit of a product.
Diminishing Marginal Utility - answerAs successive units of a good are consumed, the
utility gained from each extra unit will fall.
% Change - answery2 - y1 / y1 × 100
Price Elasticity of Demand (PED) - answerThe responsiveness of demand to changes in
price.
The value is always negative.
% ∆QD / % ∆P × 100
Unitary Price Elasticity (Ped) - answerPed = 1
Perfectly Price Inelastic (Ped) - answerPed = 0
Price Inelastic (Ped) - answerPed is < 1
Perfectly Price Elastic (Ped) - answerPed = ∞
Price Elastic (Ped) - answerPed is > 1
Total Revenue - answerPrice × Quantity
Income Elasticity of Demand (YED) - answerThe responsiveness of demand to changes
in income.
%∆QD / %∆Y × 100
Negative - Inferior Good (Y increases, QD decreases)
Positive - Normal Good (Y increases, QD increases).
