1 mark
Q1(a) Name the economist chiefly linked to the gains from specialisation and division of labour (Adam Smith / Friedrich Hayek / John Maynard Keynes / Karl Marx).
Edexcel · 9EC0 / 8EC0 / WEC11–14
All 19 questions from the Edexcel AS Level Paper 1, June 2019 Economics paper (9EC0 / 8EC0 / WEC11–14), worth 100 marks in total. The main topics tested are Elasticity (5), Indirect taxes (3), Division of labour (2), Government intervention (2).
Each question is summarised in our own words with its mark tariff, command word and specification point, and links through to the official paper.
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Q1(a) Name the economist chiefly linked to the gains from specialisation and division of labour (Adam Smith / Friedrich Hayek / John Maynard Keynes / Karl Marx).
Q1(b) Give one benefit that dividing up labour brings to carmaking, set against Henry Ford's 1913 moving assembly line.
Q2(a) Mark on a diagram how consumer surplus shifts for diesel cars once proposed 2025 city centre bans weaken demand.
Q2(b) Explain why barring diesel cars from city centres cuts diesel fuel demand (irrational buyers / expected price rise / complementary goods / substitute goods).
Q2(c) Give a short definition of demand.
Q3(a) Pick the plausible cross elasticity value for near substitutes priced alike at £7.99 monthly — Amazon Prime, Netflix, NowTV (−2.1 / −0.1 / +0.1 / +2.1).
Q3(b) With 2016 UK cinema admissions of 19.1m at £7.41 and elasticity −0.5, find revenue after a 3% rise to £7.63.
Q4(a) On a 2016 energy bill averaging £1 070 before 5% VAT, select the annual VAT charge (£53.50 / £214.00 / £1 019.00 / £1 123.50).
Q4(b) Mark on a diagram what a higher VAT rate does to the domestic energy market.
Q4(c) Give a short definition of an indirect tax.
Q5(a) Given average weekly pocket money rising from £7 to £8.75 and a Freddo income elasticity of demand of −0.1, identify the percentage change in quantity demanded, ceteris paribus.
Q5(b) Set out one way income elasticity of demand matters commercially to whoever makes Freddos.
Q6(a) Using Extract A and Figure 2, show how UK health care demonstrates scarcity and the basic economic problem.
Q6(b) Account for the way unequal information, as shown in Extract B, causes markets for health care to fail.
Q6(c) Assess whether parks open to all really qualify as public goods, using Extract C.
Q6(d) Work out yearly income from a £12 GP appointment fee when 450 million visits occur and nine in ten pay nothing.
Q6(e) Discuss what is pushing up the cost of treatment in private hospitals, with a supply and demand diagram.
Q6(f) Evaluate measures the state might take to relieve excess demand for publicly funded health care.
Q6(g) Evaluate the drawbacks of leaving health care provision to a free market.
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