Pearson Edexcel Level 3 GCE Monday 20 May 2019
Please check the examination details below before entering your candidate informationCandidate surnamePearson EdexcelLevel 3 GCEOther namesCentre NumberCandidate NumberMonday 20 May 2019Morning (Time: 2 hours )Paper Reference 9EC0/01Economics AAdvancedPaper 1: Markets and Business BehaviourYou do not need any other materials.Total MarksInstructionsblack ink or ball-point pen. UseFillinboxes at the top of this page with your name, centrethenumber and candidate number.are three sections in this question paper. Answer all questions from ThereSection A and Section B. Answer one question from Section C.the questions in the spaces provided Answer– there may be more space than you need.Informationtotal mark for this paper is 100. Themarks for each question are shown in brackets The– use this as a guide as to how much time to spend on each question. Calculators may be used.Adviceeach question carefully before you start to answer it. Read Check your answers if you have time at the end.Turn overP57190A 2019 Pearson Education Ltd.1/1/1/1/1/1/1/1*P57190A0132*
SECTION AAnswer ALL questions. Write your answers in the spaces provided.Some questions must be answered with a cross in a box . If you change your mind about ananswer, put a line through the box and then mark your new answer with a cross .You are advised to spend 30 minutes on this section.Use the data to support your answers where relevant. You may annotate and includediagrams in your answers.1 Between 2016 and 2017 the average price of new build houses in the UK rose by anestimated 5.4%.YearQuantity of UK new house builds2016134 6122017162 880(Source: ial-crisis/)(a) With reference to the data provided, calculate the price elasticity of supplyfor new house builds between 2016 and 2017. You are advised to show yourworkings.(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(b) A 2.5% increase in new build house prices in one region of the UK causes a 10%increase in the number of houses built. Ceteris paribus, this suggests that supplyof new house builds is:(1)A perfectly price elasticB perfectly price inelasticC relatively price elasticD relatively price inelastic2*P57190A0232*
(c) Explain one factor that is likely to determine the price elasticity of supply of newhouse builds.(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(Total for Question 1 5 marks)*P57190A0332*3Turn over
AR D2 In August 2017 Hurricane Harvey caused the closure of nearly a quarter of the oilproduction capacity in the United States.(a) Draw a supply and demand diagramMRto show the likely microeconomic effects ofthe hurricane on the US oil market.Quantity(4)4*P57190A0432*
(b) The diagrams show movements from position X to Y on production possibilityfrontiers. In which one of the diagrams does the movement from X to Y illustratethe most likelyOptionimpactonas HurricaneOptionAA the US economy of a natural disaster ofofcapitalcapitalgoodsgoods(Total for Question 2 5 57190A0532*5Turn over
Cost/revenue ( )MC3 According to the Royal Mail, more hair and beauty salons opened on UK high streetslast year than any other type of independent business, with a net increase of 10%,representing 626 new salons.(Source: adapted from s)(a) The UK hair and beauty industry is an example of monopolistic competitionbecause:(1)A firms spend nothing on advertising and researchB the industry is dominated by a few large firmsC the products are homogenousAR DD there are low barriers to entry and exit(b) Draw a cost and revenue diagram toMRshow the long-run equilibrium of a firm inmonopolistic competition.Quantity(4)(Total for Question 3 5 marks)6*P57190A0632*
4 In 2016, the insurance group Esure undertook a demerger with its GoCompare pricecomparison website.(a) The most likely reason for this demerger was to:(1)A benefit from external economies of scaleB benefit from internal economies of scaleC focus more on its core businessD increase its market shareFollowing the demerger, GoCompare announced in 2017 a profit of 17.5 million, up21.5% on 2016. Total revenue in 2017 was 75.8 million, up 4.1% on 2016.(Source: adapted from fits-up-at-go-compare)(b) Calculate, using the information provided, the total costs of GoCompare in 2016.(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(Total for Question 4 5 marks)*P57190A0732*7Turn over
5 Free market economics is being challenged. The arguments for and against are beingincreasingly discussed within many countries.(a) Explain how resources are allocated in a free market economy.(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(b) Which one of the following statements is true?(1)A Friedrich Hayek believed that the government should subsidiseinefficient firmsB Friedrich Hayek was a key advocate of command economies as a wayof allocating resourcesC Karl Marx advocated allocating resources via the free marketD Karl Marx criticised the private ownership of factors of productionAdam Smith described the benefits of specialisation and the division of labour.(c) Explain one advantage to a firm of using division of labour when organising itsproduction process.(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(Total for Question 5 5 marks)TOTAL FOR SECTION A 25 MARKS8*P57190A0832*
BLANK PAGEQUESTION 6 BEGINS ON THE NEXT PAGE.*P57190A0932*9Turn over
SECTION BRead Figures 1 and 2 and extracts (A to C) before answering Question 6.Write your answers in the spaces provided.You are advised to spend 1 hour on this section.Question 6Energy and telecommunication markets in the UKFigure 1: Average annual household bill from the Big Six UK energy suppliers, 201712501000*Averageannual bill s0Average annual bill on standard variable tariffSupplier’s cheapest annual average tariff*market cheapest annual tariff(Source: )10*P57190A01032*
Extract AEnergy price cap to fix ‘broken’ market in UKThe Prime Minister recently said that the regulator Ofgem (Office of Gas and ElectricityMarkets) should limit electricity and gas suppliers’ most expensive tariffs.Under the planned new legislation, the energy bills of 11 million households will becapped for as long as five years. The government claimed this cap could save householdsup to 100 a year. This legislation would force Ofgem to change the licence conditions forenergy suppliers so that they are required to cap electricity and gas prices. The measurewill apply to anyone on a standard variable tariff, the expensive plans that customersare moved to when cheaper, fixed-price deals end. Ofgem will need to consult energycompanies on how the cap is calculated, the government said. The Prime Ministerrepeated her claim that she had to act because the ‘market is broken’, a charge thebig energy companies reject. “I have been clear that our broken energy market has tochange – it has to offer fairer prices for millions of loyal customers who have been payinghundreds of pounds too much,” she said.510However, Michael Lewis, chief executive of E.ON said “the government must guardagainst any unintended consequences that undermine customer service and push upprices as a whole. A price cap will not be good for customers. It will reduce competitionand innovation”. Smaller suppliers such as First Utility said the Big Six had onlythemselves to blame for the cap, because they had kept millions of people on standardvariable tariffs.1520(Source: adapted from ‘UK puts energy efficiency at heart of climate change strategy’, AdamVaughan, Copyright Guardian News & Media Ltd 2017 ure 2: The monthly rental cost of a telephone landlineBT Retail201918171615Price 14( )131211109870Virgin MediaOrange/EEWholesaleLine Rental*2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*Wholesale line rental – the rental price BT Openreach charges telephone service providers(Source: 1Turn over
Extract BBT profit risesBT Group, which includes BT Openreach and BT Retail, reported a rise in profit as revenueincreased following the integration of the consumer mobile business, EE. BT finalised thetakeover of EE in August 2016, and the integration has resulted in BT controlling 35% ofthe mobile consumer market. The profit of the UK-based telecommunication group in itssecond quarter 2017 rose to 566 million.BT Group chief executive Gavin Patterson said: “We will operate a multi-brand strategywith UK customers being able to choose a mix of BT, EE or Plusnet services, dependingon which suits them best. The acquisition enables us to offer great value bundles ofservices and customers are set to be the winners as we compete for their business”.510(Source: adapted from www.marketwatch.com (Oct 27 – 2016) and t CBT to slash landline charges for 1 million customersRental charges for landline-only customers – households with a telephone-only contractbut no BT broadband – will fall from 18.99 to 11.99 per month after the regulatorattacked existing deals as ‘poor value for money’. This rental reduction will save a millionlandline-only customers 84 a year.The regulator Ofcom (Office of Communications) said it stepped in because these billsfor landline-only customers – nearly two-thirds of whom are over 65 – have “soared” inrecent years. This is despite BT and other landline providers benefiting from significantcuts in the wholesale line rental cost of providing the service by BT Openreach. Manylandline-only customers are elderly, and have been with BT for decades. Ofcom hasfocused on BT because it accounts for two-thirds of the UK’s 1.5m landline-onlycustomers.A spokesperson for Ofcom said “This position [of dominance] has allowed BT to increaseprices without much risk of losing customers, and other providers have followed BT’spricing lead. We expect BT’s price cut to mean other providers will follow suit”. Ofcomsaid that over three-quarters of BT’s landline-only customers have never switchedprovider, which has left them a prime target for price rises. The regulator said that allmajor landline providers have increased their line rental charges by between 23% and47% in recent years, while their own costs for providing the service have fallen about27%. Ofcom said it is also looking at measures to help people shop around for betterdeals with more confidence.(Source: adapted from ‘BT to slash landline charges for 1m customers’, Mark Sweney,Copyright Guardian News & Media Ltd 2017 7190A01232*5101520
6 (a) With reference to Extract A, explain the difference between a positive statementand a normative statement.(5)(b) With reference to Extract B, examine the likely benefits to consumers of theintegration between BT and EE.(8)(c) With reference to Extract C, assess possible reasons why many ‘landline-only’customers do not switch to a cheaper telephone provider.(10)(d) Discuss one likely reason for the rise in BT’s profit (Figure 2, Extracts B and C).Use a cost and revenue diagram to support your answer.(12)(e) Discuss methods of government intervention to protect consumers within theutilities markets, such as energy and telecommunications.(15)*P57190A01332*13Turn over
(a) With reference to Extract A, explain the difference between a positive statementand a normative statement.(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pearson Edexcel Level 3 GCE Candidate surname Other names You do not need any other materials. Total Marks Centre Number Candidate Number ee e e enon e eo eore entern our nte noron Paper Reference 9EC001 Economics A Advanced Paper 1: Markets and Business Behaviour Morning (Time: 2 hours ) Monday 20 May 2019 P57190A 2019 Pearson Education Ltd .
Pearson Edexcel GCE Physics 2017 Advanced Level Lis o daa ormulae and relaionshis Issue 2 Pearson Edexcel Level 3 Advanced Level GCE in Physics (9PH0) List of data, formulae and relationships Issue 2 Summer 2017 P57019RA 2017 Pearson Education Ltd. 1/1/1/1/1/1/ 2 P 27 2 BLANK PAGE. P .File Size: 246KB
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