Edexcel A-Level Economics Paper 1 5th June 2018 Unofficial markscheme

Watch
mahvesh
Badges: 8
Rep:
?
#1
Report Thread starter 2 years ago
#1
Did people find section B difficult or was it just me?


Lets try get some answers together pls edit out any questions you remember!
2
reply
mahvesh
Badges: 8
Rep:
?
#2
Report Thread starter 2 years ago
#2
Section A
1) New and Old opportunity cost?
20 and 30

2) Reason for an outward shift of PPF
Technological improvements in machinery

3) Coastal defence scheme in kent
Public good

(5) Original supernormal profit was £225 but the new supernormal profit after the change in business objective (from profit maximisation to revenue maximisation) was £108, so £225-£108=£117 - a £117 loss of total supernormal profit.

6) If they were to go back to sales max what would happen?
Decrease in price of treatments

Section B
1) Explain one likely reason for the overall trend in price of gas and electricity? (5 marks)
Increase in demand- population (migration/rise in birth rate)

2) Effectiveness of measures to open up increase competition in UK energy market? (12 mark)

Define CMA

1. RPI - X formula and its significance of lowering prices for consumers when the value of X is high enough
Evaluation: determining the value of X is difficult

3) Assess how regulation of energy suppliers profit levels is likely to affect consumers and suppliers? (10)

4) PED of energy is -0.35 and -0.85 in the LR, suggest the reasons for change in PED over time? (8)
n the short terms PED is inelastic due to the fact that consumers have a limited range of options that can help increase their utility and lower their costs, as a result they are forced to stay with their current provider despite the excessively high prices 5x above average.to add to this being vertically merged and owning large portions means consumers have a limited range of energy supplier.

However,in the long run consumers computational skills improve as a result of the new smart meter which may encourage consumers to become more efficient and reduce their consumption because they are now more aware of there spending on electricity. Alternatively, they could install solar panels(renewable energy source) which would reduce their dependency on electricity companies,however solar panels don’t always work because of the whether which may explain why demand is still in elastic. Although more elastic,demand is still inelastic(-0.85)

Evaluation: with PED staying inelastic and people will always need electricity in developed countries

5) Discuss policies businesses and government might implement to reduce labour immobility to benefit energy sector? (15)
training new people to become skilled, employing skilled workers from overseas

Section C
1) External costs and private costs
First point -external costs- talked about effects of different pollutions (air and noise) and its effects on the local workforce- lower productivity due to absenteeism-
Eval- hard to measure and
external costs diagram with analysis of diagram

2nd point- positive private costs - employment gone up, more disposable income leading to more spending within local economy.
Eval -opportunity cost of the investment, can money be spent elsewhere
Conc- SR/LR- long run -alternative energy sources in future rather than nuclear
SR- short term job creation, good for local economy

2) Apple 38% market share
Evaluate whether allowing one firm to have a high market share is good for consumer interest
Define Monopoly
25% Market Share is considered a legal monopoly by CMA

1. Higher prices to consumers
Evaluation: Through Economies of Scale, lower AC could be passed down onto consumers in the form of lower prices.

2. Price discrimination (Provided the PD diagram with it)
-Elastic consumers likely to charged less but its the inelastic consumers that suffer the most. Apple offers student discounts (elastic consumers) but adults don't receive these.
Evaluation: Successful PD depends on the 3 conditions

3. Quality (Since monopoly is a profit max, its unlikely to take quality into account)
Evaluation: Through dynamic efficiency, the monopoly could reinvest its profit for R&D to improve quality
5
reply
username1208193
Badges: 20
Rep:
?
#3
Report 2 years ago
#3
I swear some people haven't even finished the paper yet.
2
reply
mahvesh
Badges: 8
Rep:
?
#4
Report Thread starter 2 years ago
#4
(Original post by SubZero~)
I swear some people haven't even finished the paper yet.
Im sitting it in Dubai so must be time difference
0
reply
username1208193
Badges: 20
Rep:
?
#5
Report 2 years ago
#5
(Original post by mahvesh)
Im sitting it in Dubai so must be time difference
Yeah maybe I think the exam started at 1:30 for people sitting the paper so.
0
reply
theeconomistkid
Badges: 12
Rep:
?
#6
Report 2 years ago
#6
Is this for Edexcel Economics A? I liked the 25 marker about Apple
1
reply
username1208193
Badges: 20
Rep:
?
#7
Report 2 years ago
#7
(Original post by theeconomistkid)
Is this for Edexcel Economics A? I liked the 25 marker about Apple
I would assume so but I'm not sure if most people do A or not.
1
reply
mahvesh
Badges: 8
Rep:
?
#8
Report Thread starter 2 years ago
#8
(Original post by theeconomistkid)
Is this for Edexcel Economics A? I liked the 25 marker about Apple
Yeah it is, i liked that question too thought it went well!!
0
reply
Vanessasworld
Badges: 10
Rep:
?
#9
Report 2 years ago
#9
Section A was just beautiful

Section B was just trash and caused me to waste so much time - it was the 12 and 8 marker

Section C was meh - did the first question and felt like there wasn’t many things to talk about
4
reply
ARandom1002
Badges: 3
Rep:
?
#10
Report 2 years ago
#10
does the 25 marker you do affect grade boundaries?
0
reply
mahvesh
Badges: 8
Rep:
?
#11
Report Thread starter 2 years ago
#11
(Original post by Vanessasworld)
Section A was just beautiful

Section B was just trash and caused me to waste so much time - it was the 12 and 8 marker

Section C was meh - did the first question and felt like there wasn’t many things to talk about

Same i wasted way too much time
2
reply
mahvesh
Badges: 8
Rep:
?
#12
Report Thread starter 2 years ago
#12
(Original post by ARandom1002)
does the 25 marker you do affect grade boundaries?
no you could do any from the 2
0
reply
username1208193
Badges: 20
Rep:
?
#13
Report 2 years ago
#13
(Original post by ARandom1002)
does the 25 marker you do affect grade boundaries?
I don't understand this question but, 25 marks is a lot to lose. Do you mean like, the grade boundaries would be different for each 25 marker? Well, I don't think so because I'm pretty grade boundaries are set based on the marks you get on the whole paper(s).
0
reply
Atiki
Badges: 6
Rep:
?
#14
Report 2 years ago
#14
I wrote things about behavioural economics rather than the government intervention on that CMA question.

I'm dying cuz it might be completely off-topic.
2
reply
massssssss_
Badges: 12
Rep:
?
#15
Report 2 years ago
#15
(Original post by Vanessasworld)
Section A was just beautiful

Section B was just trash and caused me to waste so much time - it was the 12 and 8 marker

Section C was meh - did the first question and felt like there wasn’t many things to talk about
Literally the same for me, spent way too much time on 12 marker and didnt have enough time for the 15 marker and 25 marker fml... and 8 marker, like wtf no ty, good bye A grade ))))
1
reply
theeconomistkid
Badges: 12
Rep:
?
#16
Report 2 years ago
#16
I was geniunely happy about the paper. Def easier than last year for me lmfao
0
reply
mahvesh
Badges: 8
Rep:
?
#17
Report Thread starter 2 years ago
#17
(Original post by massssssss_)
Literally the same for me, spent way too much time on 12 marker and didnt have enough time for the 15 marker and 25 marker fml... and 8 marker, like wtf no ty, good bye A grade ))))
thank god im not the only one who went through this! fml
3
reply
juliakoczij
Badges: 9
Rep:
?
#18
Report 2 years ago
#18
what was the opportunity cost for original and new equilibrium of consumer goods? Question 1 a
0
reply
massssssss_
Badges: 12
Rep:
?
#19
Report 2 years ago
#19
(Original post by mahvesh)
thank god im not the only one who went through this! fml
Yeah, I know I’m relieved I’m not the only one who wasn’t a fan of the paper, could mean lower grade boundaries hopefully 😩😩 what 25 marker did you do??
0
reply
theeconomistkid
Badges: 12
Rep:
?
#20
Report 2 years ago
#20
What did y'all say about profit cappin? That one got me shook
2
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Current uni students - are you thinking of dropping out of university?

Yes, I'm seriously considering dropping out (150)
14.76%
I'm not sure (44)
4.33%
No, I'm going to stick it out for now (303)
29.82%
I have already dropped out (26)
2.56%
I'm not a current university student (493)
48.52%

Watched Threads

View All