International A Level Unit 3, Jan 2021

Q1 Real house prices in Sydney rose 40% between 2009 and 2019. Identify the likely effect on the mobility of labour. (geographical or occupational mobility rising or falling)

Q2 Using a chart of Indian smartphone market shares in Q4 2019, calculate the four-firm concentration ratio.

Q3 For a hairdressing salon in monopolistic competition in long-run equilibrium, identify what is true. (productively efficient / supernormal profit / allocatively efficient / normal profit)

Q4 Polish car manufacturing had an estimated elasticity of labour supply of 1.3 in 2017. Identify what would make labour supply more elastic. (lower net migration / higher welfare benefits / lower income tax / higher union membership)

Q5 Angola announced the privatisation of three state-owned textile factories in March 2020. Identify the most likely effect. (less X-inefficiency / lower productive efficiency / less consumer choice / less share ownership)

Q6 From a total revenue curve plotted as output expands, decide how the firm's marginal revenue behaves (rising / constant / negative / falling).

Q7(a) Work out what Tata Steel spent in total making steel during 2019, using Figures 1 and 2.

Q7(b) Set out the meaning of a monopsony employer, as Extract C uses that phrase.

Q7(c) Examine how the planned Tata Steel/Thyssenkrupp merger might alter profits for carmakers in Europe, using Extract B and a suitable diagram.

Q7(d) Using Extract C, analyse two grounds on which the European Competition Commission refused the Tata Steel/Thyssenkrupp merger.

Q7(e) Discuss what Tata Steel and Thyssenkrupp stood to gain from horizontal integration, using Extracts A and B, your own knowledge and a diagram.

Q10 Following South Africa's 2018 National Minimum Wage Act, evaluate with diagrams how a wage floor affects tourism firms and the people they employ.

Q8 Using a chosen industry and diagrams, evaluate the drawbacks oligopoly brings firms and buyers; South Africa's 2019 four-firm ratios reached 96% (mobile phones) and 74% (insurance).

Q9 After Flybe's 2020 collapse, evaluate with diagrams whether any firm whose costs outstrip revenue must close, illustrating from an industry you select.