International A Level Unit 3, Jan 2020

Q1 Since 2014 Irish bus routes have been opened to private bidders: name the concept — competitive tendering, regulation, trade liberalisation or government failure?

Q2 Using a table of UK grocery market shares in March 2016 and March 2017, calculate the three-firm and five-firm concentration ratios and identify the correct statement.

Q3 Job-changing among US workers hit its lowest rate since the 1970s in 2016; pick the valid inference on skills, vacancies and housing costs.

Q4 Using a long-run average cost curve, identify what must be true as output rises between two points. (diminishing returns / economies of scale / diseconomies of scale / falling total costs)

Q5 A monopoly operates at its revenue maximising output. Identify what is true. (MR = MC / AR = AC / average fixed costs rising / marginal revenue is zero)

Q6 Which factor makes labour demand more elastic: wages forming a large share of costs, capital substituting poorly, lengthy training, or inelastic product demand?

Q7(a) Work out, showing your method, how much electric car sales changed in percentage terms between 2013 and 2017 (Figure 1).

Q7(b) Explain what specialisation means as an economic idea, drawing your evidence from Extracts A and B.

Q7(c) Using Extract A, examine how falling variable costs might change Tesla's profit, supporting the answer with suitable diagrams.

Q7(d) Using Extract B, analyse how price elasticity of demand links to a firm's total revenue, with suitable diagrams.

Q7(e) Discuss how much entry and exit barriers matter for newcomers like Dyson in the electric car market, using the material supplied.

Q10 Malaysia lifted the minimum wage in garments and textiles from MYR1 000 up to MYR1 500 during 2018; evaluate gains for firms and workers, with diagrams.

Q8 In July 2017 Metro Group split into New Metro and CECONOMY; evaluate the gains a demerger may bring the firm and its workers, with diagrams.

Q9 Ethio Telecom was Ethiopia's sole state-owned telecoms provider in 2017; evaluate whether consumers gain from monopoly, using appropriate diagrams.