International A Level Unit 3, May 2021

Q1 Mara Group aims to maximise sales volume of a new smartphone without making a loss. Identify the necessary condition. (MR = MC / AR = AC / MR = 0 / AR = MR)

Q2 Choose the term best fitting Lantmannen, a Swedish farming business with 25 000 farmer-owners (state-owned enterprise / joint venture / conglomerate / co-operative).

Q3 Select, from the four diagrams shown, the one depicting the average fixed cost curve for a firm.

Q4 Pick the factor that affects labour demand elasticity (size of population / welfare payments / labour's share of a firm's total costs / immigration rules).

Q5 Given a textbook publisher's total cost table for outputs up to 5 000, work out average variable cost when output is 4 000.

Q6 A wheat farm operates in monopolistic competition. Identify what applies. (long-run allocative inefficiency / short-run productive efficiency / long-run supernormal profit / short-run allocative efficiency)

Q7(a) Work out, showing your method, the four-firm concentration ratio in China's 2018 car market, using Figure 2.

Q7(b) Explain the meaning of 'takeover' as it is used in Extract B's third paragraph.

Q7(c) Analyse two explanations for declining Chinese car sales after 2017, drawing on Figure 1 and Extract A.

Q7(d) Examine how China's state subsidy might alter an electric car producer's profits, using Extract A and a suitable diagram.

Q7(e) Discuss which forms of non-price competition might lift car makers' sales, using Extracts A and B plus your own knowledge.

Q10 Evaluate, with diagrams, what causes wages to differ between workers (context: New Zealand's private sector paid 30% below its public sector in 2018).

Q8 Evaluate whether consumers gain from privatisation, with diagrams (context: India's 2019 proposal to sell off as many as 25 airports).

Q9 Evaluate, using diagrams, the claim that producers always gain from price discrimination (context: a UK rail journey often carrying over five different fares).