AS Level Paper 1, June 2018

Q1(a) Identify whether each of two statements about Cuba's healthcare system is positive or normative.

Q1(b) Work out roughly how many doctors Cuba has, from its 11 million people and one doctor for every 155 patients.

Q1(c) Give a short definition of a command economy.

Q2(a) Compute demand's price elasticity for the Daily Mail after its 60p to 65p rise cut sales by 5.41%, other things equal.

Q2(b) Pick the factor most likely to shape the Daily Mail's price elasticity of demand (competing titles on sale / population change / cheaper production / anticipated price rise).

Q2(c) Give a short definition of ceteris paribus.

Q3(a) From the UK dental charge figures, choose which price mechanism function is at work in privately provided dental care.

Q3(b) Set out one reason the government might fund dental treatment through the NHS.

Q3(c) Give a short definition of asymmetric information.

Q4(a) Select the statement that correctly describes what median household income measures.

Q4(b) With UK median income up from £24 200 to £25 700 and bus journeys down 3%, decide whether buses are a normal or inferior good.

Q5(a) Give a short definition of consumer surplus.

Q5(b) Mark on the BBC's production possibility frontier, starting from point W, what extra educational programming costs in forgone output.

Q5(c) Choose why BBC output gets labelled a public good (state funding / largest audience / non-rival consumption / spillover benefits).

Q6(a) Using Figure 1 and Extract A, account for uranium hitting a 13-year low price in 2016, with a supply and demand diagram.

Q6(b) Drawing on Extract A plus your own knowledge, assess how elastic uranium supply is with respect to price.

Q6(c) Using Extract B, give two explanations for energy customers staying put rather than moving to cheaper suppliers.

Q6(d) Distinguish renewable from non-renewable energy, illustrating each with examples drawn from the material supplied.

Q6(e) Discuss how an energy price ceiling would affect suppliers and households at the micro level, using a supply and demand diagram.

Q6(f) Judge, through the lens of external costs, whether the energy market supplies too much or too little nuclear power; include a suitable diagram.

Q6(g) Evaluate policy tools a government might deploy to cut carbon emissions, backing the answer with at least one diagram.