International A Level Unit 1, Jan 2022

Q1 Pick the option that shows the price mechanism at work (hand sanitiser rationed by willingness to pay / a carrot surplus prompting more supply / cheaper tinned meat signalling stronger demand / dearer petrol signalling a price ceiling)

Q2 A clothing manufacturer introduced the division of labour in 2020. Identify the likely advantage. (more boredom / higher cost per garment / higher output per worker / more training time)

Q3 Income elasticities are listed for electricity, healthcare, bus travel and Caribbean holidays — pick the conclusion the table supports.

Q4 An MPB/MSB diagram covers measles vaccinations; pick out what the diagram establishes about the welfare gain area, equilibrium in the market and the social optimum.

Q5 Choose the likeliest explanation for EU carbon permits climbing from under EUR5 in 2013 to EUR25 six years later.

Q6 A table records total utility as glasses of fruit juice are consumed; pin down the maximising quantity and where diminishing marginal utility sets in.

Q10 From tabulated world sugar price and consumption figures for 2019 and 2020, work out sugar's price elasticity of demand, showing your method.

Q11 With cross elasticity between meat and fish at +0.13 in Bangladesh, explain how meat demand responds to fish prices rising 10%.

Q7 Show diagrammatically what happens once Indian milk gets an Rs30 per litre price floor while equilibrium sits at Rs20.

Q8 Explain the term market bubble, using Munich housing where typical prices over 2010-2020 rose by more than double.

Q9 Give one reason behind the very low figure of -0.1 when US households buy natural gas (price elasticity of demand).

Q12(a) Give the meaning of indirect tax, as used in Extract B.

Q12(b) Using the headings of Extracts A and B, set out how positive and normative statements differ.

Q12(c) Examine two forces pushing the world cotton price up between 1 April 2020 and 1 January 2021, using the supply and demand diagram alongside Figure 1 and Extract A.

Q12(d) Examine, using Extract B, two external costs that arise when clothing is manufactured.

Q12(e) Discuss how scrapping the subsidy to India's clothing producers would affect both them and their customers, using Extract C plus a suitable diagram.

Q13 Assess what an economy might gain by shifting towards free market allocation, as Irish state spending slid to 25.1% of GDP from 35.9% over 2007-2019.

Q14 Assess measures that could help consumers choose rationally, given Australians sticking with a first bank lose roughly AUD1 500 yearly and loyal UK broadband users pay 12% extra.