AQA AS ECONOMICS 7135/1 Paper 1 The Operation of Markets and Market Failure Question Paper + Mark scheme [MERGED] June 2022

AQA AS ECONOMICS 7135/1 Paper 1 The Operation of Markets and Market Failure Question Paper + Mark scheme [MERGED] June 2022

Course

AQA AS ECONOMICS 7135/1

Institution

AQA AS ECONOMICS 7135/1

AQA AS ECONOMICS 7135/1 Paper 1 The Operation of Markets and Market Failure Question Paper + Mark scheme [MERGED] June 2022

AQA

AS

ECONOMICS

7135/1

Paper 1 The Operation of Markets and Market Failure

Question Paper + Mark scheme [MERGED]

June 2022

*jun227135101*

IB/M/Jun22/E6 7135/1

For Examiner’s Use

Section Mark

A

B

TOTAL

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 be used for drawing.

• Fill in the boxes at the top of this page.

• 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.

Please write clearly in block capitals.

Centre number Candidate number

Surname

Forename(s)

Candidate signature

I declare this is my own work.

AS

ECONOMICS

Paper 1 The Operation of Markets and Market Failure

2

*02*

IB/M/Jun22/7135/1

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.

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 as shown.

0 1 Choice is central to the economic problem because

A incomes are unequally distributed.

B most resources are scarce.

C people’s wants are greater than their needs.

D people’s wants are limited.

[1 mark]

0 2 A fast food restaurant is willing to supply 3000 burgers a week at a market price of £5 a

burger. The price elasticity of supply of burgers is 2. If the market price falls to £4 a

burger, the number of burgers that the restaurant will be willing to supply will be

A 1800

B 2700

C 3300

D 4200

[1 mark]

CORRECT METHOD WRONG METHODS

3

*03*

Turn over ►

IB/M/Jun22/7135/1

Do not write

outside the

0 3 box Figure 1 shows the long-run average cost curve (LRAC) for a firm.

Figure 1

Which one of the following movements along the curve shows a reduction in diseconomies

of scale?

A V to W

B X to W

C X to Y

D Z to Y

[1 mark]

0 4 A government decides to increase its subsidy to rail services to encourage more people to

travel by rail. The subsidy is most likely to be successful if rail travel has a

A demand that is elastic with respect to price.

B demand that is inelastic with respect to price.

C high positive income elasticity of demand.

D negative cross elasticity of demand with respect to car travel.

[1 mark]