Edexcel International A Level Unit 3, Oct 2022 Economics — every question

1 markInternational A Level · Unit 3 · Section A

Q1 Identify which factor also blocks new pharmaceutical firms from entering, alongside patents (Predatory pricing / Constant returns to scale / Low advertising costs / High supernormal profits).

3.3.3.8ContestabilityIdentify (MCQ)Multiple choice

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1 markInternational A Level · Unit 3 · Section A

Q2 Deduce what a short-run profit-maximising diagram for a Beijing street food vendor shows about efficiency and new entry.

3.3.3.4Monopolistic competitionIdentify (MCQ)Multiple choice

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1 markInternational A Level · Unit 3 · Section A

Q3 Identify the most likely cause of the falling US labour force participation rate after 2019 (benefits / net migration / wages / productivity).

3.3.4.2Supply of labourIdentify (MCQ)Multiple choice

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1 markInternational A Level · Unit 3 · Section A

Q4 Work out the marginal cost of hiring one more engineer when the wage must rise for all 40 existing staff.

3.3.3.7MonopsonyCalculate (MCQ)Multiple choice

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1 markInternational A Level · Unit 3 · Section A

Q5 Identify the condition under which a firm closes in the short run, given New Zealand business closures during the health crisis.

3.3.2.4Profits and lossesIdentify (MCQ)Multiple choice

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1 markInternational A Level · Unit 3 · Section A

Q6 Deduce which objective a monopolist pursues when it chooses price P3 on the diagram shown.

3.3.1.3Business objectivesIdentify (MCQ)Multiple choice

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2 marksInternational A Level · Unit 3 · Section B

Q7(a) Work out the percentage point shift in India's four-firm concentration ratio for mobile phone brands, 2020 to 2021.

3.3.3.2Concentration ratioCalculateData response essay

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6 marksInternational A Level · Unit 3 · Section B

Q7(b) Using the extract, analyse two things that made India the world's second largest smartphone market.

3.3.1.2Size of businessesAnalyseData response essay

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4 marksInternational A Level · Unit 3 · Section B

Q7(c) Explain the meaning of economies of scale, drawing on the extract about smartphone production in India.

3.3.2.3Economies of scaleExplainData response essay

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8 marksInternational A Level · Unit 3 · Section B

Q7(d) Examine how building a smartphone plant in India is likely to affect Samsung's profits, using a diagram.

3.3.2.4Profits and lossesExamineData response essay

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14 marksInternational A Level · Unit 3 · Section B

Q7(e) Discuss how competing on things other than price may help buyers and firms in India's smartphone industry.

3.3.3.5OligopolyDiscussData response essay

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20 marksInternational A Level · Unit 3 · Section C

Q10 Evaluate the microeconomic consequences for one industry when a country lifts its minimum wage, as Greece planned in 2022.

3.3.5.2Labour market interventionEvaluateEssay (choice)

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20 marksInternational A Level · Unit 3 · Section C

Q8 Evaluate the gains a firm might make from splitting off part of itself, as with an Australian mining demerger.

3.3.1.2Growth of firmsEvaluateEssay (choice)

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20 marksInternational A Level · Unit 3 · Section C

Q9 Evaluate how charging different customers different prices can help firms and buyers, given a Spanish hotel chain's EU fine.

3.3.3.6Price discriminationEvaluateEssay (choice)

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