International A Level Unit 3, May 2022

Q1 Holding other things constant, identify the option that would lower labour's geographical mobility. (higher relocation grants / higher relocation costs / better job information / similar regional house prices)

Q2 A Bangkok restaurant under monopolistic competition is shown in long-run equilibrium; decide what the diagram implies about profit and efficiency.

Q3 From the battery maker's total cost table covering outputs of 0 to 400, work out average variable cost when 300 units are produced.

Q4 Using a chart of US domestic airline market shares from February 2019 to January 2020, calculate the five-firm concentration ratio.

Q5 Following January 2021's creation of a UK construction products regulator, pick the factor that weakens state intervention in housing. (perfect resource mobility / a flexible labour market / perfect knowledge / regulatory capture)

Q6 Argentina's competitive nursing labour market became monopsonistic after universal healthcare was introduced; identify the most likely combination of effects on wages and employment.

Q7(a) Use Figure 1 to work out by what percentage Amazon's revenue shifted from 2010 to 2020.

Q7(b) Using Figure 2, explain how the cloud infrastructure market is structured.

Q7(c) Analyse how consumers are probably affected by two ways Amazon competes against rival retailers, drawing on Extract A.

Q7(d) Examine two probable ways Amazon's profits were affected by the worldwide health crisis, drawing on Extract A.

Q7(e) Using Extract B plus your own economics, discuss why so many South African SMEs closed during 2020; a suitable diagram is needed.

Q10 Evaluate how firms in oligopoly compete on price and by other means, given Apple, Samsung and OnePlus leading India's premium smartphone market; diagrams needed.

Q8 Assess how far merging delivers gains in growth, given PhotonLens (UK) tying up with China's Shadow Creator in 2021; diagrams needed.

Q9 Evaluate ways a state might stimulate market competition, set against Singapore's S$100 000 tax break for firms in their first three years; diagrams needed.