Markets and Business Behaviour

With reference to the data provided, calculate the price elasticity of supply for new house builds between 2016 and 2017. You are advised to show your workings.

A 2.5% increase in new build house prices in one region of the UK causes a 10% increase in the number of houses built. Ceteris paribus, this suggests that supply of new house builds is:

Explain one factor that is likely to determine the price elasticity of supply of new house builds.

Draw a supply and demand diagram to show the likely microeconomic effects of the hurricane on the US oil market.

Diagram needed. Open the original question paper for the diagram ↗

The diagrams show movements from position X to Y on production possibility frontiers. In which one of the diagrams does the movement from X to Y illustrate the most likely impact on the US economy of a natural disaster such as HurricaneOption AOption A Option BOption B Harvey?

The UK hair and beauty industry is an example of monopolistic competition because:

Draw a cost and revenue diagram to show the long-run equilibrium of a firm in monopolistic competition.

Diagram needed. Open the original question paper for the diagram ↗

The most likely reason for this demerger was to:

Calculate, using the information provided, the total costs of GoCompare in 2016.

Explain how resources are allocated in a free market economy.

Which one of the following statements is true?

Explain one advantage to a firm of using division of labour when organising its production process.

Case study · Energy and telecommunication markets in the UK

With reference to Extract A, explain the difference between a positive statement and a normative statement.

Case study · Energy and telecommunication markets in the UK

With reference to Extract B, examine the likely benefits to consumers of the integration between BT and EE.

Case study · Energy and telecommunication markets in the UK

With reference to Extract C, assess possible reasons why many ‘landline-only’ customers do not switch to a cheaper telephone provider.

Case study · Energy and telecommunication markets in the UK

Discuss one likely reason for the rise in BT’s profit (Figure 2, Extracts B and C). Use a cost and revenue diagram to support your answer.

Diagram needed. Open the original question paper for the diagram ↗

Case study · Energy and telecommunication markets in the UK

Discuss methods of government intervention to protect consumers within the utilities markets, such as energy and telecommunications.

In July 2017 it was announced that only a third of the BBC’s 96 top earning presenters were women and that its seven highest-paid presenters were all men. According to the High Pay Centre, in 2018, UK chief executives can earn 120 times more than the average full-time worker earning £28 758. With reference to an industry of your choice, evaluate why wage differences exist within the UK labour market.

In October 2017 Scania, the Volkswagen-owned truck maker, was fined €880 million (£771 million) by the European Commission for colluding with five other truck manufacturers over a 14-year period. The firms had agreed to coordinate prices after experiencing additional costs of meeting emission regulations. With reference to an industry of your choice, evaluate why some firms engage in collusive behaviour.