International A Level Unit 1, Jan 2019

Q1 Identify which of four production possibility frontier diagrams shows Singapore's expected population increase of 90 000 with the economy still at maximum productive potential.

Q2 Identify which role — signalling, rationing, incentive or government intervention — genuinely belongs to the price mechanism.

Q3 Choose the government-failure cause: a market bubble, free riders and public goods, under-supply of goods with external benefits, or heavy admin costs from environmental regulation.

Q4 Using a diagram of the EU wheat market after the introduction of a subsidy, calculate the consumer incidence of the subsidy.

Q5 Using a demand curve for rice, identify at which of four points the price elasticity of demand will be unitary.

Q6 A table gives US income elasticity estimates for motor cars, ice cream, cheese and public transport: state what it shows.

Q10 Using a table of quantity demanded and supplied of bottled water at each price, calculate the new equilibrium price after an advertising campaign raises demand by 100 bottles at every price, showing workings.

Q11 Tighter supply lifted Ho Chi Minh City sand from VND510 000 per cubic metre to VND695 000 during 2017; explain the effect on producer surplus, with a diagram.

Q7 Sketch how Saudi Arabia's 2018 five per cent indirect tax, levied on goods and services, moves petrol's equilibrium price and quantity.

Q8 Rimac reorganised its car plant around division of labour; set out one gain this brings to manufacturing.

Q9 Bolivia's Lake Poopo lost 98% of its water by 2017, ending quinoa irrigation; decide whether it is now an economic good rather than a free good.

Q12(a) Give the meaning of 'substitutes' as the word is used in Extract A (short definition question).

Q12(b) Drawing on Extract A, identify and explain one influence on how responsive cocoa bean supply is to price, i.e. its PES.

Q12(c) Analyse one cause of cocoa beans dropping under $2 000 a tonne by April 2017, using Figure 1 and Extract A, with a supply and demand diagram.

Q12(d) From Extract B, examine which external costs arise when cocoa beans are grown and processed, and who ends up bearing them.

Q12(e) Extract C reports a lower guaranteed minimum price for cocoa: discuss the consequences, supporting your answer with a suitable diagram.

Q13 Half of UK gas and electricity customers have never switched supplier despite savings near £200 a year; evaluate why such inertia persists.

Q14 Evaluate reasons for under-investment in flood defences, with reference to public goods (context: 2017 Bangladesh floods displacing 8 million people and destroying 100 000 houses).