AQA GCSE ECONOMICS Paper 1 How Markets Work FINAL QUESTION PAPER MAY 2023

AQA GCSE ECONOMICS Paper 1 How Markets Work 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. *JUN23* IB/H/Jun23/E7 8136/1 Section A Answer all questions in the spaces provided. box 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. 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 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 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. ich of the following would be included in the tertiary sector of an economy? A farm A leisure centre Construction Fishing Turn over for the next question [1 mark] 0 4 Wh A B C D Turn over ► 0 5 Which of the following is an example of a variable cost? [1 mark] A Insurance B Raw materials C Rent D Salaries which jobs are earnings likely to be highest? In those where it is easy to replace workers In those where workers are paid weekly In those with an excess supply of labour In those with long training periods ich of the following is a reason for a firm having price elastic supply? A high amount of spare capacity A low number of substitutes High consumer incomes Low stocks of raw materials [1 mark] [1 mark] 0 6 In A B C D 0 7 Wh A B C D 0 8 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 Turn over ► 1 0 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 75 100 100 100 75 125 125 50 150 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