Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel International Advanced Level
Tuesday 16 January 2024
Afternoon (Time: 2 hours) Paper
reference WEC13/01
Economics
International Advanced Level
UNIT 3: Business behaviour
You must have: Total Marks
Source Booklet
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 in Section A and Section B.
Answer TWO questions in Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 80.
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.
Check your answers if you have time at the end.
Turn over
P73484A
©2024 Pearson Education Ltd.
S:1/1/1/1/1/1/
*P73484A0128*
, SECTION A
Answer ALL questions in this section.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Questions must be answered with a cross in a box . If you change your mind about an answer,
put a line through the box and then mark your new answer with a cross .
1 In 2022 Canadian National Railway paid $27.2 billion to acquire Kansas City Southern,
a Mexico-USA cross‑border railway.
Which one of the following best describes the acquisition of the Kansas City Southern
railway by Canadian National Railway?
A Conglomerate integration
B Forward vertical integration
C Horizontal integration
D Backward vertical integration
(Total for Question 1 = 1 mark)
2
*P73484A0228*
, 2 The table shows the quantity of shirts that would be sold at different selling prices by
a textile manufacturer based in Botswana.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Selling price Quantity of shirts
($) demanded
18 4 000
16 5 000
14 6 000
12 7 000
Which one of the following would be the textile manufacturer’s marginal revenue if
the price was reduced from $16 to $14?
You may want to use the final column for your workings.
A $0
B $4
C $12
D $14
(Total for Question 2 = 1 mark)
3
*P73484A0328* Turn over
, 3 The diagram shows the short‑run profit maximising equilibrium for an agricultural
business operating in a perfectly competitive market.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Costs and
revenues MC
AC
Pe D = AR = MR
C
0 Qe Quantity
Ceteris paribus, which one of the following is the most likely outcome in the long‑run?
A The agricultural business will make normal profit
B The agricultural business will shut down
C The agricultural business will increase its output
D The agricultural business will increase its price
(Total for Question 3 = 1 mark)
4 In 2022 Google’s global market share of the internet search engine market was 84%.
Which one of the following is the most likely outcome of Google operating at its
profit maximising output?
A Average revenue is equal to marginal cost
B Marginal revenue is greater than average revenue
C Marginal revenue is equal to total cost
D Average revenue is greater than average cost
(Total for Question 4 = 1 mark)
4
*P73484A0428*
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel International Advanced Level
Tuesday 16 January 2024
Afternoon (Time: 2 hours) Paper
reference WEC13/01
Economics
International Advanced Level
UNIT 3: Business behaviour
You must have: Total Marks
Source Booklet
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 in Section A and Section B.
Answer TWO questions in Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 80.
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.
Check your answers if you have time at the end.
Turn over
P73484A
©2024 Pearson Education Ltd.
S:1/1/1/1/1/1/
*P73484A0128*
, SECTION A
Answer ALL questions in this section.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Questions must be answered with a cross in a box . If you change your mind about an answer,
put a line through the box and then mark your new answer with a cross .
1 In 2022 Canadian National Railway paid $27.2 billion to acquire Kansas City Southern,
a Mexico-USA cross‑border railway.
Which one of the following best describes the acquisition of the Kansas City Southern
railway by Canadian National Railway?
A Conglomerate integration
B Forward vertical integration
C Horizontal integration
D Backward vertical integration
(Total for Question 1 = 1 mark)
2
*P73484A0228*
, 2 The table shows the quantity of shirts that would be sold at different selling prices by
a textile manufacturer based in Botswana.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Selling price Quantity of shirts
($) demanded
18 4 000
16 5 000
14 6 000
12 7 000
Which one of the following would be the textile manufacturer’s marginal revenue if
the price was reduced from $16 to $14?
You may want to use the final column for your workings.
A $0
B $4
C $12
D $14
(Total for Question 2 = 1 mark)
3
*P73484A0328* Turn over
, 3 The diagram shows the short‑run profit maximising equilibrium for an agricultural
business operating in a perfectly competitive market.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Costs and
revenues MC
AC
Pe D = AR = MR
C
0 Qe Quantity
Ceteris paribus, which one of the following is the most likely outcome in the long‑run?
A The agricultural business will make normal profit
B The agricultural business will shut down
C The agricultural business will increase its output
D The agricultural business will increase its price
(Total for Question 3 = 1 mark)
4 In 2022 Google’s global market share of the internet search engine market was 84%.
Which one of the following is the most likely outcome of Google operating at its
profit maximising output?
A Average revenue is equal to marginal cost
B Marginal revenue is greater than average revenue
C Marginal revenue is equal to total cost
D Average revenue is greater than average cost
(Total for Question 4 = 1 mark)
4
*P73484A0428*
