AS · June 2025 · Paper 1
Spending on capital goods in the UK rose by 4.8% in Quarter 4, 2022. Which one of the following is an example of a capital good?
Using an example from your own knowledge, explain the distinction between renewable and non-renewable resources.
In 2021, a bakery sold 2.5 million sausage rolls per week at the price of £1.00 each. In 2022 the price increased to £1.20. The price elasticity of demand was estimated to be −0.2. Calculate the new quantity of sausage rolls sold per week in 2022 after the price increased, ceteris paribus.
Which one of the following is the most appropriate description of the price elasticity of demand of −0.2?
The economy of Singapore is a highly developed free market economy with some elements of government intervention. Define the term ‘free market’.
Which one of the following is the most likely reason why a free market fails to achieve the social optimum position?
Explain why public goods may not be provided by the private sector.
During the period from October to December 2022, production of coffee beans in the Philippines increased by 2.7% from the same quarter in 2021. Which one of the following is most likely to cause a shift to the right of the supply curve?
Explain how the operation of market forces will eliminate an excess supply of coffee.
Which one of the following factors may cause a shift in demand for new cars?
The diagram on the previous page shows new car registrations in March from 2007 to 2023. Using 2010 as the base year, calculate the index number for 2023.
Diagram needed. Open the original question paper for the diagram
Case study · The market for meat and the growth of vegetarianism
With reference to Extract B, explain why the change to meat-substitute products may result in an increase in the revenue of food companies. Refer to the concept of price elasticity of demand in your answer.
Case study · The market for meat and the growth of vegetarianism
With reference to the information provided and your own knowledge, assess the view that consumers switching to meat-substitute products is an example of rational behaviour.
Case study · The market for meat and the growth of vegetarianism
With reference to the last paragraph of Extract B, explain two factors which are likely to influence price elasticity of supply.
Case study · The market for meat and the growth of vegetarianism
Using examples from either Extract A or Extract B, explain what is meant by positive and normative economic statements.
Case study · The market for meat and the growth of vegetarianism
With reference to Extract A, discuss the likely private costs and external costs caused by meat farming. Use an appropriate diagram in your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for meat and the growth of vegetarianism
Evaluate the likely microeconomic effects of a reduction in subsidies to farmers of animal products (Figure 1 and Extract B, line 14). Use a relevant diagram to support your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for meat and the growth of vegetarianism
Evaluate the likely microeconomic effects of an increase in indirect tax on animal products (Figure 2 and Extract A, line 17). Use a relevant diagram to support your answer.
Diagram needed. Open the original question paper for the diagram