International A Level Unit 1, May 2022

Q1 Identify the case of government failure (sugar overconsumed, generating external costs / smuggled petrol following an indirect tax / higher timber prices spurring output / flood defences ending free riding).

Q2 Which of gold, housing, higher education or street lighting is the good most plausibly having a forward market?

Q3 For Indonesia, cross elasticities of demand for maize, fish, meat and vegetables against the rice price are tabulated; select the valid conclusion.

Q4 A demand curve has 350 jars of coffee selling at £3 per 500g jar: what does it tell us about elasticity and total revenue?

Q5 UK electricity prices rose 10% in April 2020 and a record 668 371 consumers switched supplier. Identify the explanation for the switchers' behaviour.

Q6 Cinema ticket demand went from 250 000 tickets to 290 000 after real incomes grew 4%; compute income elasticity of demand.

Q10 Using a table of average world wheat prices and quantity supplied in 2019 and 2020, calculate the price elasticity of supply, showing workings.

Q11 Explain, with a diagram, how the UK National Food Strategy's proposed £6 per kg levy on manufacturers' added salt would affect salty food markets.

Q7 In 2018 Germany saw 1.59 million arrivals against 1.19 million leaving; draw its production possibility frontier, arrowing how that population change shifts it.

Q8 Explain how capital goods differ from consumer goods, using China, where investment slipped 47% to 43% of GDP as consumption edged up, 2018–2019.

Q9 With 95 000 Singapore streetlights swapped out over 2017–2022, give one microeconomic justification for state provision of street lighting.

Q12(a) Give the meaning of 'external costs', the term used in Extract B (short definition).

Q12(b) Using Figure 2, explain how renewable resources differ from non-renewable ones.

Q12(c) Analyse two drivers of copper's sharp world price rise from May to December 2020, using Figure 1, Extract A and a demand-and-supply diagram.

Q12(d) Examine two probable consequences of dearer copper for plumbers fitting replacement water pipes in people's homes, using Extract A.

Q12(e) Discuss, with a suitable diagram, what subsidising makers of battery electric buses could do, drawing on Extract B plus your own knowledge.

Q13 Evaluate what a price ceiling does to Sri Lanka's white rice market (context: November 2020's Rs80 per kilogram cap, set under the prevailing price).

Q14 Evaluate, on microeconomic grounds, why education may be underconsumed (context: 2019 university attainment among 25-34s at 70% in South Korea, 50% USA, 28% Italy).