AS Level Paper 1, June 2022

Q1(a) Which pair of properties defines a private good? (non-rival, excludable / non-rival, non-excludable / rival, excludable / rival, non-excludable)

Q1(b) Explain why the state, rather than firms, normally funds flood defences, using the Calder Valley and its £74m of government money since 2015.

Q2(a) Define the term 'minimum price' (context: the EU Common Agricultural Policy).

Q2(b) On a demand and supply diagram for EU wheat, identify the area representing the amount spent on intervention buying to achieve a price of P2.

Q2(c) Give one difficulty the EU would face in holding the wheat price at P2.

Q3(a) Which change would stop a national currency working as a medium of exchange? (tougher to forge / limitless supply / smaller denominations / greater durability)

Q3(b) Explain one role of money, other than exchange, that Bitcoin performs.

Q4(a) Using a vaccination claim as the example, explain how positive and normative statements differ.

Q4(b) Which case shows market failure arising in a free market? (welfare loss from intervention / entry attracted by higher prices / positive-externality goods under-supplied / prices rising on excess demand)

Q5(a) Give one reason flour millers struggled to lift output quickly once demand jumped in March 2020.

Q5(b) Ice cream has PES of +1.5; after a 10% price rise, which supply change follows? (0.15% / 1.5% / 6.67% / 15%)

Q6(a) Explain what the 2020 Total Allowable Catches would do to cod prices, supported by a demand and supply diagram.

Q6(b) Assess, using Extract B, how rational it is for fishing firms to maximise catch for profit while bearing no responsibility for ocean health.

Q6(c) Using the material supplied plus wider knowledge, explain two features of private ownership under a free market system.

Q6(d) Fish and chips have a cross elasticity of −8; with 950 000 bags sold each day, calculate chip demand once fish prices climb 2%.

Q6(e) Discuss what concentrating an economy on fishing would bring; answer needs a production possibility frontier diagram.

Q6(f) Evaluate the external costs cod over-fishing creates, backing your answer with a suitable diagram.

Q6(g) Setting Total Allowable Catches aside, evaluate other policies for tackling the market failure over-fishing causes; include at least one diagram.