Edexcel Economics A
783 questions
Calculate the change in total supernormal profit if the restaurant changes its objective from revenue maximisation to profit maximisation. You are advised to show your working.
Refer to the previous diagram. There is a reduction in the demand for pizza. Ceteris paribus, which one of the following will happen to the restaurant’s average revenue and marginal revenue as a result of this change?
Diagram needed. Open the original question paper for the diagram
With reference to the data above, explain the likely numerical value of the price elasticity of supply for oil.
The cross elasticity of demand for petrol cars with respect to the price of diesel cars is estimated to be +0.64. Which one of the following is the most likely impact if the price of diesel cars falls by 10%?
Which one of the following applies to the dental practice’s equilibrium at point E? The dental practice is:
The government subsidises dental care in the UK through the National Health Service (NHS). There has been a large decrease in the work carried out by NHS dentists. Up to 90% of practices are not accepting new NHS patients. Draw an externalities diagram to identify the welfare gain area from the consumption of dental care in the UK.
Diagram needed. Open the original question paper for the diagram
With reference to the data above, explain how imperfect market information may lead to a misallocation of resources in the used-car market.
In September 2022, the online retailer, Amazon, increased the price of its Prime service from £7.99 a month to £8.99. As a result, almost 600 000 people cancelled their subscriptions. Which one of the following is the most likely explanation of this behaviour? These consumers:
Draw a labour market diagram to show the likely impact of the increase in the National Minimum Wage for hospitality employees.
Diagram needed. Open the original question paper for the diagram
There has been a significant decrease in the supply of agricultural workers in the UK. Which one of the following is the most likely cause of this decrease?
Case study · Digital markets
With reference to Extract A, explain one likely impact of the growth of digital markets on allocative efficiency.
Case study · Digital markets
With reference to Extract C, examine two effects of increased ‘automation’ on the demand for labour.
Case study · Digital markets
With reference to the information provided, discuss whether the price elasticity of demand for video games is elastic or inelastic.
Case study · Digital markets
With reference to the information provided, assess whether the market for video game development is contestable.
Case study · Digital markets
Discuss the likely benefits of mergers for firms such as Microsoft.
Evaluate the likely microeconomic effects of building major infrastructure projects.
Evaluate the likely microeconomic effects of increased spending on education.
With reference to the table above, which one of the following is correct?
With reference to the data provided, explain one limitation of using GDP to compare living standards between countries.
With reference to the chart above, which one of the following is correct?