International A Level Unit 1, Oct 2023

Q1 Identify which case counts as government failure (excess supply cleared by price / share-price bubble / tax cutting external costs / tax that boosts smuggling).

Q2 Identify what might explain a country's shrinking maximum output of consumer and capital goods from 2021 to 2022.

Q3 Deduce what Norwegian PED figures for diesel, petrol and electric cars imply about elasticity and producer revenue.

Q4 Deduce the socially optimal output and the welfare gain area from a diagram of Spanish museum visits.

Q5 Identify the concept covering bankers taking excessive risks before 2008 because rescue was expected (inertia / free-rider / moral hazard / bubble).

Q6 Deduce from a diagram what links PlayStation 5 and Xbox Series X consoles (substitutes / complements / unrelated / inferior).

Q10 Work out how responsive cocoa supply is to price, using world price and tonnage figures for 2020 and 2021.

Q11 Explain, with a diagram, how Vietnam's 10% levy on online sales affects the market for paperbacks bought online.

Q7 Sketch how a 12.32% fall in Laotian real incomes shifts the market for domestic holidays, given YED of +1.36.

Q8 Explain how herding differs from inertia, using US data on consumers who never change bank.

Q9 Explain one function financial markets perform, referring to Thai household saving and bank lending in 2022.

Q12(a) Define what a tradeable pollution permit scheme is, as referred to in the fertiliser extract.

Q12(b) Explain whether phosphate rock supply responds much to price, using the fertiliser production extract.

Q12(c) Analyse one demand cause and one supply cause of the world fertiliser price rise from early 2021 to spring 2022, with a diagram.

Q12(d) Examine two likely consequences of Canadian grants encouraging farmers to switch to organic methods.

Q12(e) Discuss the external costs arising when fertiliser is manufactured and applied, with a suitable diagram.

Q13 Evaluate the microeconomic consequences of raising a price ceiling on household electricity, as the UK did in late 2022.

Q14 Evaluate how imperfect information affects insurance markets, given uninsured travellers and drivers who understate risk.