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Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel Level 3 GCE
Monday 13 May 2024
Paper
Morning (Time: 1 hour 30 minutes)
reference 8EC0/01 🞍 🞍
Economics A
Advanced Subsidiary
PAPER 1: Introduction to Markets and Market Failure
You do not need any other materials. Total Marks
Pearson Edexcel Level 3 GCE Economics A Advanced Subsidiary PAPER 1: Introduction to
Markets and Market Failure QP MAY 2024
Instructions
•• Use black ink or ball‑point pen.
Fill in the boxes at the top of this page with your name,
• There are two sections in this question paper.
centre number and candidate number.
•• Answer all questions in Section A.
• Answer
In Section B, answer all of questions 6(a) to 6(e) and one question from 6(f) or 6(g).
thebequestions
– there may more spaceinthan
theyou
spaces
need. provided
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
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BLANK PAGE
2
, SECTION A
Answer ALL questions. Write your answers in the spaces provided.
DO NOT WRITE IN THIS AREA
Some 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 .
You are advised to spend 25 minutes on this section.
Use the data to support your answers where relevant. You may annotate and include diagramsin your
answers.
1 Scarcity of non‑renewable resources, such as oil, is a key reason why alternative
resources have been developed by economies. In recent years, within the energymarket
there has been a large increase in the production of wind power.
(a) With reference to the information provided, explain the distinction between
renewable and non‑renewable resources.
(3)
(b) Which one of the following best describes ‘scarcity’?
(1)
A An extension of the demand curve
B Excess supply
C Insufficient resources to satisfy wants
D The misallocation of resources
(Total for Question 1 = 4 marks)
3
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, 2 Vanilla bean prices increased to a record $600 a kilogramme in 2018 after a cyclone hit the
tropical island of Madagascar, damaging crops. Madagascar supplies 75% to 80% of the
world vanilla bean market.
DO NOT WRITE IN THIS AREA
(a) Define the term ‘supply.’
(1)
(b) The diagrams below show movements from position X to Y on production possibility
frontiers. In which one of the diagrams does the movement from X to Yillustrate the most
likely impact on Madagascar’s economy of a natural disaster such as a cyclone?
(1)
DO NOT WRITE IN THIS AREA
A B
Output of Output of
consumer consumer
Y
goods goods Y
X
X
0 Output of capital goods 0 Output of capital goods
C D
Output of Output of
consumer consumer DO NOT WRITE IN THIS AREA
goods goods
Y X
X Y
0 Output of capital goods 0 Output of capital goods
4
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