International A Level Unit 1, Jan 2025

Q1 Identify a drawback of relying on a free market, given Singapore's low taxes and light business regulation.

Q2 Deduce what follows in Ireland's milk market if a guaranteed floor price is set above the equilibrium.

Q3 Identify which role money performs, given $5.8 trillion circulating in the USA in 2022.

Q4 Deduce the sacrifice involved in moving between points on an economy's capital versus consumer goods frontier.

Q5 Deduce from a 2022 world electricity generation chart how far output came from renewable sources.

Q6 Deduce how electric, hybrid and diesel cars relate to petrol cars in Norway from positive cross elasticity figures.

Q10 Work out how responsive UK bus travel is to rising average weekly earnings between 2022 and 2023.

Q11 Explain, using a demand and supply sketch, how fewer foreign visitors to Czechia affects hotel producer surplus.

Q7 Sketch the market effect of France's proposed EUR0.65 per litre levy on fuel used by private jets.

Q8 Explain why Australian house prices jumping 24.5% in 2021 then falling may point to a speculative bubble.

Q9 Explain how rationing differs from incentive signals, using dearer cotton t-shirts and farmers switching what they grow wheat for.

Q12(a) Define what a forward market is, as mentioned in the extract on rising cocoa prices.

Q12(b) Analyse one supply and one demand cause of cocoa's roughly 68% price jump to 2023, with a diagram.

Q12(c) Explain what price inelastic supply means for cocoa over shorter and longer periods, using the elasticity estimates.

Q12(d) Examine two consequences of Ghana scrapping the payments it had been making to cocoa growers.

Q12(e) Discuss the spillover costs of growing cocoa in West Africa, with an externalities diagram.

Q13 Evaluate the advantages of tradeable pollution permits, given South Korea's scheme covering 70% of its businesses.

Q14 Evaluate the microeconomic gains from spending more per head on education in rich and poor countries.