MERGED QUESTION PAPER AND MARKING SCHEME
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signat ure
I declare this is my own work.
AS
ECONOMICS
Paper 1 The Operation of Markets and Market Failure
Monday 13 May 2024 Morning Time allowed: 1 hour 30 minutes
Materials
For Examiner’s Use
For this paper you must have:
• the Insert Section Mark
• a calculator.
A
Instructions B
• Use black ink or black ball-point pen. Pencil should only be used for drawing. TOTAL
• Fill in the boxes at the top of this page.
• Answer all questions in Section A.
• Answer either Context 1 or Context 2 in Section B.
• You will need to refer to the Insert provided to answer Section B.
• You must answer the questions in the spaces provided. Do not write outside
the box around each page or 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 maximum mark for this paper is 70.
• The marks for questions are shown in brackets.
• No deductions will be made for wrong answers.
IB/G/Jun24/G4002/E11 7135/1
, 2
Do not write
outside the
Section A box
Answer all questions in this section.
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 one of the following is a function of prices in a market economy?
[1 mark]
A Allocating resources to the production of public goods
B Ensuring that the distribution of goods and services is fair
C Incentivising firms to produce the goods consumers want
D Providing a measurement of positive and negative externalities
0 2 Which one of the following is a normative statement?
The price of petrol
[1 mark]
A fell in real terms last year.
B is affected by supply.
C is now too high.
D will rise next year.
IB/M/Jun24/7135/1
, 3
Do not write
outside the
0 3 Figure 1 shows the demand curve for Economics textbooks. box
Figure 1
Which one of the following could have caused the movement along the demand curve from
L to M?
[1 mark]
A A fall in the number of people studying Economics
B A fall in the price of Economics textbooks
C An increase in consumer incomes
D An increase in the price of paper
0 4 Partial market failure occurs when
[1 mark]
A prices fall causing firms to make losses.
B there are no positive externalities in consumption.
C there is a missing market for the product.
D there is immobility of factors of production.
Turn over ►
IB/M/Jun24/7135/1
, 4
Do not write
outside the
0 5 The price of carrots falls from 60p to 54p per kilo. As a result of this fall in price, the box
quantity supplied falls by a quarter.
What is the price elasticity of supply?
[1 mark]
A 0.25
B 0.4
C 2.5
D 4
0 6 In a perfectly competitive market, a firm is most likely to
[1 mark]
A charge the same price as other firms.
B earn large profits in the long run.
C produce the same output as its competitors.
D spend large amounts of money on advertising.
IB/M/Jun24//7135/1
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signat ure
I declare this is my own work.
AS
ECONOMICS
Paper 1 The Operation of Markets and Market Failure
Monday 13 May 2024 Morning Time allowed: 1 hour 30 minutes
Materials
For Examiner’s Use
For this paper you must have:
• the Insert Section Mark
• a calculator.
A
Instructions B
• Use black ink or black ball-point pen. Pencil should only be used for drawing. TOTAL
• Fill in the boxes at the top of this page.
• Answer all questions in Section A.
• Answer either Context 1 or Context 2 in Section B.
• You will need to refer to the Insert provided to answer Section B.
• You must answer the questions in the spaces provided. Do not write outside
the box around each page or 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 maximum mark for this paper is 70.
• The marks for questions are shown in brackets.
• No deductions will be made for wrong answers.
IB/G/Jun24/G4002/E11 7135/1
, 2
Do not write
outside the
Section A box
Answer all questions in this section.
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 one of the following is a function of prices in a market economy?
[1 mark]
A Allocating resources to the production of public goods
B Ensuring that the distribution of goods and services is fair
C Incentivising firms to produce the goods consumers want
D Providing a measurement of positive and negative externalities
0 2 Which one of the following is a normative statement?
The price of petrol
[1 mark]
A fell in real terms last year.
B is affected by supply.
C is now too high.
D will rise next year.
IB/M/Jun24/7135/1
, 3
Do not write
outside the
0 3 Figure 1 shows the demand curve for Economics textbooks. box
Figure 1
Which one of the following could have caused the movement along the demand curve from
L to M?
[1 mark]
A A fall in the number of people studying Economics
B A fall in the price of Economics textbooks
C An increase in consumer incomes
D An increase in the price of paper
0 4 Partial market failure occurs when
[1 mark]
A prices fall causing firms to make losses.
B there are no positive externalities in consumption.
C there is a missing market for the product.
D there is immobility of factors of production.
Turn over ►
IB/M/Jun24/7135/1
, 4
Do not write
outside the
0 5 The price of carrots falls from 60p to 54p per kilo. As a result of this fall in price, the box
quantity supplied falls by a quarter.
What is the price elasticity of supply?
[1 mark]
A 0.25
B 0.4
C 2.5
D 4
0 6 In a perfectly competitive market, a firm is most likely to
[1 mark]
A charge the same price as other firms.
B earn large profits in the long run.
C produce the same output as its competitors.
D spend large amounts of money on advertising.
IB/M/Jun24//7135/1
