AS · June 2022 · Paper 1
What are the characteristics of a private good?
Explain why flood defences such as those in the Calder Valley are usually provided by the public sector.
Define the term ‘minimum price’.
In achieving a price of P , the amount spent on intervention buying by the EU would be
Explain one likely problem for the EU of maintaining prices at P .
Which one of the following would be most likely to cause a country’s currency to no longer be acceptable as a medium of exchange?
Explain how Bitcoin fulfils one function of money, apart from as a medium of exchange.
With reference to the statement above, explain the difference between positive and normative statements.
Which one of the following explains how market failure might occur in a free market economy?
Explain one reason why flour producers might find it difficult to increase quantity supplied in the short run.
A manufacturer has estimated that the price elasticity of supply of ice cream is +1.5. If the demand for ice cream rises and the price increases by 10%, which one of the following is the resulting percentage change in supply?
Case study · The market for fish
Explain the likely impact of the new 2020 TACs on the price of cod. Include a supply and demand diagram in your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for fish
Assess whether it is rational for fishing companies to behave in this way.
Case study · The market for fish
With reference to the information provided and your own knowledge, explain two characteristics of private ownership in a free market economy.
Case study · The market for fish
With reference to the information provided, calculate the new quantity demanded of bags of chips from fish and chip shops, following a 2% increase in the price of fish. You are advised to show your working.
Case study · The market for fish
Discuss the likely impacts on an economy of specialising in the fishing industry. Use a production possibility frontier diagram in your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for fish
Some economists suggest that the market price of cod does not result in the socially optimum level of output. Evaluate the likely external costs from the over-fishing of cod. Use an appropriate diagram in your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for fish
Other than using a TAC, evaluate the policy options which could be used to reduce market failure resulting from over-fishing. Use at least one appropriate diagram in your answer.
Diagram needed. Open the original question paper for the diagram