AQA
AS
ECONOMICS
Paper 1 The Operation of Markets and Market Failure
Monday 15 May 2023 Morning Time allowed: 1 hour 30 minutes
Materials
For this paper you must have:
• the Insert
• a calculator.
Instructions
• Use black ink or black ball-point pen. Pencil should only b...
AS
ECONOMICS
Paper 1 The Operation of Markets and Market
Failure
Monday 15 May 2023 Morning Time allowed: 1 hour 30 minutes
Materials
For Examiner’s Use
For this paper you must have:
the Insert Sectio Mark
a calculator. n
A
Instructions B
Use black ink or black ball-point pen. Pencil should only be used for drawing.
Fill in the boxes at the top of this page. TOTAL
Answer all questions in Section A.
Answer either Context 1 or Context 2 in Section B.
You will need to refer to the Insert provided to answer Section B.
You must answer the questions in the spaces provided. Do not
write outside the box around each page or on blank pages.
If you need extra space for your answer(s), use the lined pages at
the end of this book. Write the question number against your
answer(s).
Do all rough work in this book. Cross through any work you do not
want to be marked.
Information
The maximum mark for this paper is 70.
The marks for questions are shown in brackets.
No deductions will be made for wrong answers.
IB/M/Jun23/E10 7135/1
1
, 2
Do not write
outside the
Section A box
Answer all questions in this
section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
0 1 Which one of the following gives rise to opportunity cost?
[1 mark]
A Alternative uses for resources
B Market failures for many goods
C The methodology of positive economics
D The presence of externalities
0 2 A bakery decides to increase the price of the bread that it sells.
Which one of the following price elasticities of demand for bread will result
in the largest increase in the bakery’s total revenue?
[1 mark]
A –0.4
B –0.8
C –1.0
D –2.0
*02
IB/M/
* Jun23/7135/1
, 3
Do not write
outside the
0 3 Figure 1 shows the demand (D) and supply (S) curves for scooters. box
Market equilibrium is initially at E, the intersection of D1 and S1.
Figure 1
The government announces a cut in the indirect tax on scooters and an increase
in the indirect tax on bicycles, a substitute for scooters.
Which one of the following is most likely to be the new equilibrium in the
market for scooters?
[1 mark]
A F
B G
C H
D I
Turn over ►
*03
IB/M/
* Jun23/7135/1
, 4
Do not write
outside the
box
*03
IB/M/
* Jun23/7135/1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Intelligentexceller17. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £12.20. You're not tied to anything after your purchase.
