International A Level Unit 1, Oct 2021

Q1 Identify which activity properly belongs to government within a mixed economy (ration by price mechanism / tax goods with external benefits / subsidise goods producing external costs / introduce tradeable pollution permits).

Q2 Over 6.4 million UK households switched energy supplier in 2019, saving an average of £290. Identify the explanation for this behaviour.

Q3 Price elasticity of demand is tabulated for washing machines, refrigerators, dishwashers and clothes dryers; spot the consistent conclusion.

Q4 Using a demand curve for chocolate bars in Spain, calculate the change in total revenue when retailers cut the price from EUR1.50 to EUR1.30.

Q5 With kits for infection testing in Odisha, India held to a price ceiling, determine what the diagram reveals about excess demand or supply, contractions and extensions.

Q6 Read the Chilean table of cross elasticity figures linking water, milk and coffee to sugar-sweetened drinks, then state what may be concluded.

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

Q11 Bananas in US shops moved from $1.17 to $1.30 per kg as transport costs climbed; explain what happens to consumer surplus, supported by a diagram.

Q7 Sketch a diagram for China's subsidy to solar panel makers, labelling the resulting equilibrium price and quantity plus the area representing government spending.

Q8 Using the table of US sales movements across April and May 2020, explain how capital goods differ from consumer goods.

Q9 Flood defences cost the Dutch Government EUR1 billion annually: give one reason why the state, not the market, supplies such a public good.

Q12(a) State the meaning of complementary goods as that term appears in Extract A.

Q12(b) Taking Figure 1 with Extract A, analyse why rubber's world price slid from $1.67 to $1.35 per kg across January to May 2020; support this with a supply and demand diagram.

Q12(c) Extract B opens by calling rubber supply price inelastic; explain what that description actually means.

Q12(d) Examine how producer surplus shifts once the rubber glove market changes in the way Extract C sets out; a diagram is needed.

Q12(e) Drawing on Extract B, discuss what external costs arise when tyres are manufactured and then used.

Q13 Evaluate the microeconomic consequences of Uganda taxing mobile internet at 200 shillings daily, a levy followed by take-up sliding from 47.4% to 35% of people.

Q14 Assess what financial markets contribute to an economy, given 2019 Sweden, where households saved 16.5% of income, owed 189% of it, and made 349 debit card payments each.