17 questions · 88 marks · ≈ 1 hour · spans 15 of 16 topics
Assembled from the topic question banks — not an official Edexcel paperThe total revenue of a printing firm is $75 000 per month when it sells 100,000 newspapers. The price of a newspaper increases to $0.85 and demand falls to 95,000 newspapers per month.
Calculate the new total revenue. You are advised to show your working.
Using the diagram below, draw the effects of a minimum wage (W1) being set above the equilibrium wage (We). Label the new quantity of labour demanded and the new quantity of labour supplied.
Beating the congestion in Dhaka
Nearly 17 million people live in Dhaka, the capital of Bangladesh. The majority of people live in the city centre and traffic congestion is a problem. However, there are many auto rickshaws (a small, three-wheeled vehicle, driven by a motorcycle engine) competing in the city centre to take passengers to their destinations. Fares tend to be cheaper in the city centre than they are outside the city centre and are usually agreed between passengers and drivers.
Dhaka has a large number of auto rickshaws competing for fares.
Apart from price, describe one advantage for passengers of this competition.
Foxconn Technology produces the new Apple iPhone at its factory in Shenzhen, China. It employs 270,000 workers in its factory. Each worker carries out a specific task which ranges from handling the phone screen, assembling components, checking the phone works, to packaging the phone ready to ship to the customer.
(Source adapted from: Link)
With reference to the data above and your knowledge of economics, assess the benefits for Foxconn Technology of using division of labour.
What is meant by the term trade union?
Which one of the following is a role of a central bank?
Choose your answer
Investing in firms
Raising taxes
Asset purchasing
Lending money to individuals
What is meant by the term fiscal surplus?
The local government in Alberta, Canada, is doubling its infrastructure budget for 2020–2021 to Canadian $1.9bn to try to prevent job losses. Alberta had lost 117,000 jobs in March 2020, bringing the unemployment rate to 8.7%.
The additional funding will go towards repairing roads, bridges and upgrading technology in schools and universities.
(Source: https://edmontonjournal.com/news/politics/covid-19-jason-kenney-announces- infrastructure-spending-to-counter-job-losses/)
With reference to the data above and your knowledge of economics, assess the effectiveness of infrastructure spending to reduce unemployment in a country such as Canada.
Figure 5 shows the gross domestic product (GDP) for India in 2021 and 2022.
| 2021 | 2022 | |
|---|---|---|
| GDP ($bn) | 3150.31 | 3385.09 |
Calculate, to two decimal places, the percentage change in GDP for India between 2021 and 2022. You are advised to show your working.
The Indian Government offers many different benefit payments and other provisions to very low‐income individuals and families to help to reduce poverty. These include cash transfers, food rations and training courses for unemployed workers.
With reference to the data above and your knowledge of economics, analyse how benefits offered by the government can help to reduce poverty for a country such as India.
Using the diagram below, draw the likely effects on the market for apples following a decrease in the price of bananas. Label the new curve, the new equilibrium price and the new equilibrium quantity.
Which one of the following is a reason why consumers may not maximise their benefit?
Choose your answer
Consumers may accurately calculate the satisfaction they gain
Consumers may have habits that are hard to give up
Consumers are always rational when making decisions
Consumers never copy the behaviour of others
There has been a sharp rise in demand for skilled data engineers in Kenya's technology sector, but the supply of qualified data engineers cannot increase quickly. Explain one reason why this might be a concern for Kenyan technology firms.
There are plans to build a $296m residential tower in the business district of Sydney, Australia, but some local people do not want the tower to be built.
With reference to the data above and your knowledge of economics, analyse the possible external costs that may occur during the building of the residential tower.
State one factor of production.
What is meant by the term privatisation?
Figure 4 shows the amount of foreign direct investment (FDI) India received from 2016–2019.
| Year | FDI ($bn) |
|---|---|
| 2016 | 45.14 |
| 2017 | 55.55 |
| 2018 | 60.98 |
| 2019 | 64.37 |
Figure 4
(Source adapted from: https://www.businesstoday.in/current/economy-politics/ india-has-received-highest-ever-fdi-of-6437-billion/story/369313.html)
Calculate, to two decimal places,the annual average value of FDI in $bn for India from 2016–2019. You are advised to show your working.
In January 2019, the Indian Government approved new legislation that improved and simplified its policy on foreign direct investment (FDI). This helped to attract more multinational corporations (MNCs) to the country.
In 2019, India ranked among the top 10 economies benefitting from FDI. The overall growth of FDI in India was due to its many resources. These include a high degree of specialisation in services and a skilled, English-speaking, low-cost labour force. India also has a potential market of over one billion people.
FDI in India has been focused on chemicals, computer software and hardware, telecommunications, the automobile industry, construction, power and pharmaceuticals.
(Source adapted from: https://www.nordeatrade.com/en/explore-new-market/india/investment)
With reference to the data above and your knowledge of economics, evaluate the benefits of FDI for a country such as India.
In 2020, the Kazakhstan Government introduced quotas of 200,000 tonnes on imported wheat and 70,000 tonnes on imported flour.
Explain one possible reason why the Kazakhstan Government introduced quotas on imports of wheat and flour.
Figure 3 shows the costs to a firm of running a machine to produce an order of goods.
| Purchase price of machine ($) | Electricity ($ per hour) | Production time (hours) | Insurance ($) |
|---|---|---|---|
| 1 036 | 0.45 | 19 | 17 |
Figure 3
Calculate the total variable costs of this order for the firm. You are advised to show your working.
A project to update the infrastructure and develop new routes along Indian railways has been in progress for a number of years. One part of the plan is to expand the rail network between Hyderabad and Karnataka.
The expanded railway network will provide more services for passengers, along with more freight trains. This will mean more raw materials, including cement, iron ore and steel can be transported.
With reference to the data above and your knowledge of economics, analyse the impact of external economies of scale on construction firms in India.
In January 2023, the minimum wage in the Netherlands was increased by 10.15% to €1934.40 per month. The decision was partly due to inflation increasing to 17% during 2022.
However, the decision has been criticised because the economy is still weak following the global health crisis.
With reference to the data above and your knowledge of economics, assess the likely benefits of increasing the minimum wage for employees and firms in the Netherlands.