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Centre Number Candidate Number
Pearson Edexcel International Advanced Level
Tuesday 16 January 2024
Afternoon (Time: 2 hours) Paper
reference WEC13/01
Economics
International Advanced Level
UNIT 3: Business behaviour
You must have: Total Marks
Source Booklet
Instructions
•• Use black ink or ball-point pen.
Fill in the boxes at the top of this page with your name,
centre number and candidate number.
•• Answer ALL questions in Section A and Section B.
Answer TWO questions in Section C.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
•• The total mark for this paper is 80.
The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
•• Read each question carefully before you start to answer it.
Check your answers if you have time at the end.
DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA DO NOT WRITE IN THIS AREA
Questions must be answered with a cross in a box . If you change your mind about an answer,
put a line through the box and then mark your new answer with a cross .
1 In 2022 Canadian National Railway paid $27.2 billion to acquire Kansas City Southern,
a Mexico-USA cross‑border railway.
Which one of the following best describes the acquisition of the Kansas City Southern
railway by Canadian National Railway?
A Conglomerate integration
B Forward vertical integration
C Horizontal integration
D Backward vertical integration
(Total for Question 1 = 1 mark)
2
*P73484A0228*
, 2 The table shows the quantity of shirts that would be sold at different selling prices by
a textile manufacturer based in Botswana.
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Selling price Quantity of shirts
($) demanded
18 4 000
16 5 000
14 6 000
12 7 000
Which one of the following would be the textile manufacturer’s marginal revenue if
the price was reduced from $16 to $14?
You may want to use the final column for your workings.
A $0
B $4
C $12
D $14
(Total for Question 2 = 1 mark)
3
*P73484A0328* Turn over
, 3 The diagram shows the short‑run profit maximising equilibrium for an agricultural
business operating in a perfectly competitive market.
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Costs and
revenues MC
AC
Pe D = AR = MR
C
0 Qe Quantity
Ceteris paribus, which one of the following is the most likely outcome in the long‑run?
A The agricultural business will make normal profit
B The agricultural business will shut down
C The agricultural business will increase its output
D The agricultural business will increase its price
(Total for Question 3 = 1 mark)
4 In 2022 Google’s global market share of the internet search engine market was 84%.
Which one of the following is the most likely outcome of Google operating at its
profit maximising output?
A Average revenue is equal to marginal cost
B Marginal revenue is greater than average revenue
C Marginal revenue is equal to total cost
D Average revenue is greater than average cost
(Total for Question 4 = 1 mark)
4
*P73484A0428*
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