OCR AS Level Economics Microeconomics (H060/01)
Oxford Cambridge and RSA
May 2026 – Morning
AS Level Economics
H060/01 Microeconomics
Time allowed: 1 hour 30 minutes
You can use:
• a scientific or graphical calculator
Please write clearly in black ink. Do not write in the barcodes.
Centre number Candidate number
First name(s)
Last name
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.
, 2
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 [1]
2 The table shows the production possibility curve for a country that produces capital and
consumer goods.
Capital goods Consumer goods
(million units) (million units)
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 [1]
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]
, 3
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 [1]
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 [1]
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
B opportunity cost of the change
C producer surplus available
D profit gained from the change
Your answer [1]
© OCR 2025 Turn over
, 4
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 [1]
8 What is a reward for labour?
A Interest
B Profit
C Rent
D Wages
Your answer [1]
9 What is an example of market failure?
A Buffer Scheme
B Pollution
C Subsidies
D Taxes
Your answer [1]
© OCR 2025
Oxford Cambridge and RSA
May 2026 – Morning
AS Level Economics
H060/01 Microeconomics
Time allowed: 1 hour 30 minutes
You can use:
• a scientific or graphical calculator
Please write clearly in black ink. Do not write in the barcodes.
Centre number Candidate number
First name(s)
Last name
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.
, 2
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 [1]
2 The table shows the production possibility curve for a country that produces capital and
consumer goods.
Capital goods Consumer goods
(million units) (million units)
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 [1]
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]
, 3
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 [1]
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 [1]
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
B opportunity cost of the change
C producer surplus available
D profit gained from the change
Your answer [1]
© OCR 2025 Turn over
, 4
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 [1]
8 What is a reward for labour?
A Interest
B Profit
C Rent
D Wages
Your answer [1]
9 What is an example of market failure?
A Buffer Scheme
B Pollution
C Subsidies
D Taxes
Your answer [1]
© OCR 2025
