International A Level Unit 1, May 2019

Q1 Given one statement about Kenyan healthcare spending being 8% of the budget and one that African countries should spend 15%, identify which is positive and which is normative.

Q2 China introduced a carbon emissions trading scheme. Identify how a tradeable pollution permit scheme reduces emissions.

Q3 Select the option that illustrates market failure (lower prices shifting production / excessive regulatory administration costs / over-provision of street lights / insured consumers taking more risks).

Q4 From an MPB/MSB diagram covering education, work out what follows about the social optimum, the welfare gain area and market equilibrium.

Q5 Using a diagram relating the price of Xbox consoles to the quantity demanded of PlayStation 4 consoles, identify the relationship between the two goods. (complements / inferior / substitutes / unrelated)

Q6 Estimates of the price elasticity of supply for wheat, rice and corn are tabulated; pick the statement they support.

Q10 Centrica raised gas and electricity prices 12.5% in September 2017 and lost 800 000 of its 12 800 000 customers; calculate the price elasticity of demand, showing workings.

Q11 Lithuania held 3.7 million people in 1989 but 2.9 million by 2015: explain, with a diagram and ceteris paribus, the effect on its production possibility frontier.

Q7 Illustrate on a diagram how scrapping Nigeria's petrol subsidy in 2016 would move petrol's equilibrium price and quantity.

Q8 With reference to a chart of Canada's 2015 electricity generation by resource, explain the difference between renewable and non-renewable resources.

Q9 With Singapore's 2017 exports equal to 173.3% of GDP, set out one function financial markets serve in that kind of economy.

Q12(a) State what 'free good' means as it appears in Extract A.

Q12(b) Australian weekly household real income grew 2.7% over 2008-2016; using Figure 1, explain how the quantity of lamb demanded would shift.

Q12(c) Analyse one cause of lamb becoming dearer through 2017, citing Figure 2 and Extract A, and include a supply and demand diagram.

Q12(d) Examine, using Extract B, the external costs that greater meat output generates.

Q12(e) Discuss what imposing an indirect tax on meat would probably do, citing Extract B, and support your answer with a diagram.

Q13 Evaluate why only 18.3% of US adults were vaccinated against HPV between 2011 and 2014, despite the vaccine reducing cancer risk by 88%.

Q14 Evaluate what capping gas and electricity prices would achieve, given 12 million UK households were on standard variable tariffs costing £1 166 while the cheapest deal was £935.