AS · June 2019 · Paper 1
The benefits of specialisation and division of labour are mostly associated with:
Explain one advantage of the division of labour in car production.
Annotate the diagram to show the change in consumer surplus in the market for diesel vehicles, following the change in demand caused by the proposed 2025 ban in some city centres.
Diagram needed. Open the original question paper for the diagram
A ban on diesel vehicles in city centres will reduce the demand for diesel fuel. This is because:
Define the term ‘demand’.
The most likely cross price elasticity of demand for close substitutes is:
Calculate the new total revenue if prices were raised by 3% in 2017 to £7.63, if everything else remained unchanged. You are advised to show your working.
The amount of VAT paid per year from energy bills by an average household in 2016 was:
On the diagram below annotate the effect of a rise in VAT on the market for household energy use.
Diagram needed. Open the original question paper for the diagram
Define the term ‘indirect tax’.
Calculate the percentage change in quantity demanded for Freddos between 2015 and 2017, ceteris paribus:
Explain one reason why the income elasticity of demand is significant to the producer of Freddos.
Case study · Health provision
With reference to Extract A and Figure 2, explain how the health care market in the UK illustrates the economic problem.
Case study · Health provision
Explain how ‘asymmetric information’ (Extract B, line 30) can lead to market failure in health provision.
Case study · Health provision
‘Public parks are a public good’ (Extract C, line 1). Assess this statement.
Case study · Health provision
Calculate the annual revenue raised by charging £12 per GP visit. Assume there will be 450 million GP visits per year and 90% of these will not be charged. You are advised to show your working.
Case study · Health provision
Discuss likely reasons why the prices of treatments in private sector hospitals are increasing. Draw a supply and demand diagram to support your answer.
Diagram needed. Open the original question paper for the diagram
Case study · Health provision
Evaluate possible ways the government could intervene to reduce the excess demand for state-funded health care.
Case study · Health provision
Evaluate the possible disadvantages of a free market approach to providing health care.