: Pearson Edexcel past-paper questions pack

Government intervention in markets

Past-paper questions pack

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Questions are numbered; the mark schemes (the answer key) follow on separate pages so the question pages can be handed out alone. www.economicsaleveltutor.com

Pearson Edexcel AS and A-level Economics past-paper questions since 2016 · 40 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2025 · AS Paper 1 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate the likely microeconomic effects of a reduction in subsidies to farmers of animal products (Figure 1 and Extract B, line 14). Use a relevant diagram to support your answer. (20)

2. June 2025 · AS Paper 1 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate the likely microeconomic effects of an increase in indirect tax on animal products (Figure 2 and Extract A, line 17). Use a relevant diagram to support your answer. (20)

3. June 2024 · AS Paper 1 · Q3(b) · 3 marks · AO1=1,AO2=1,AO3=1

The education system in Singapore produces some of the highest achieving students in international education rankings, with its teenagers coming top in tests in mathematics, reading and science. (b) Singapore’s education system is provided by the state. With reference to the information above, explain why education is normally provided by the state. (3)

4. June 2024 · Paper 1 · Q4(a) · 4 marks · AO1=2,AO2=1,AO3=1

(a) Explain one likely reason for the maximum price for an undergraduate university programme. (4)

5. June 2024 · Paper 1 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6

(e) With reference to Extract D, discuss possible methods of government intervention to reduce electronic waste. (15)

6. June 2024 · AS Paper 1 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate the likely impact of a tax on plastic food-packaging. Use a diagram to support your answer. (20)

7. June 2024 · AS Paper 1 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate methods of government intervention which could be used to reduce the market failure associated with plastic waste. Use a diagram to support your answer. (20)

8. June 2023 · AS Paper 1 · Q1(a) · 1 marks ·

(a) Which one of the following is the percentage increase in the maximum price to the average household bill? (1) A 35 % B 45 % C 54 % D 694 %

9. June 2023 · AS Paper 1 · Q1(b) · 2 marks · AO2=2

(b) Annotate the diagram below to show the original and new maximum price in this market. (2) Average annual household bill (£) S P1 D 0 Q1 Quantity of energy per household

10. June 2023 · AS Paper 1 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate possible methods of government intervention to reduce the environmental damage caused by the consumption of television content. (20)

11. June 2023 · Paper 1 · Q7 · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

7 The average UK household energy bill (gas and electric combined) rose 80% from £1 971 in 2021 to £3 549 in 2022. (Source adapted from: https://www.telegraph.co.uk/money/consumer-affairs/ energy-price-cap-rise-october-2022-what-happen-household-bills/) Evaluate possible methods of government intervention to control household energy bills in the UK.

12. June 2023 · Paper 1 · Q8 · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

8 Using 2021 estimates of carbon emissions, it is estimated that a petrol car journey from London to Glasgow emits approximately 3.3 times more carbon dioxide per passenger than the equivalent journey by train. (Source adapted from: https://www.gov.uk/government/statistics/transport-and- environment-statistics-autumn-2021/transport-and-environment-statistics-autumn-2021) Evaluate possible methods of government intervention to reduce carbon emissions caused by road transport in the UK.

13. June 2022 · AS Paper 1 · Q1(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) Explain why flood defences such as those in the Calder Valley are usually provided by the public sector. (3)

14. June 2022 · AS Paper 1 · Q2(a) · 1 marks · AO1=1

(a) Define the term ‘minimum price’. (1)

15. June 2022 · AS Paper 1 · Q2(b) · 1 marks ·

The diagram below shows the demand and supply curves for wheat in the European Union (EU). Price of Supply wheat J H P2 K L P1 Demand Q2 Q1 Q3 0 Quantity of wheat The free market price of wheat is P1. It had been agreed as part of the CAP to maintain a price of P2 within the EU and to do so through intervention buying. (b) In achieving a price of P2 , the amount spent on intervention buying by the EU would be (1) A HKL B JHQ2Q3 C LKJH D Q1Q2LK

16. June 2022 · Paper 1 · Q3(b) · 1 marks · AO3=1

(b) Which one of the following is the most likely effect of the £180 000 fine? (1) To: A increase market failure B increase profits for the water company C reduce external costs D reduce government failure

17. June 2022 · AS Paper 1 · Q6(a) · 5 marks · AO1=1,AO2=2,AO3=2

(a) Explain the likely impact of the new 2020 TACs on the price of cod. Include a supply and demand diagram in your answer. (5)

18. June 2022 · AS Paper 1 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Other than using a TAC, evaluate the policy options which could be used to reduce market failure resulting from over-fishing. Use at least one appropriate diagram in your answer. (20)

19. November 2021 · Paper 1 · Q6(d) · 12 marks · AO1=2,AO2=2,AO3=4,AO4=4

(d) With reference to Extract C, discuss the proposed government subsidy to prevent Thomas Cook from reaching its shut-down point. (12)

20. October 2020 · Paper 1 · Q3(a) · 4 marks · AO1=2,AO2=1,AO3=1

(a) Explain one likely effect of reducing the number of tradable pollution permits. (4)

21. October 2020 · AS Paper 1 · Q4(b) · 3 marks · AO1=1,AO2=1,AO3=1

(b) Using an example, explain why the government imposes specific taxes on many goods and services. (3)

22. October 2020 · AS Paper 1 · Q6(d) · 4 marks · AO1=2,AO2=2

(d) With reference to Figure 2, calculate the percentage increase in outstanding student loans from 2013 to 2018. You are advised to show your working. (4)

23. October 2020 · AS Paper 1 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate whether government intervention is able to correct market failure in education. (20)

24. October 2020 · Paper 3 · Q1(c) · 12 marks · AO1=2,AO2=2,AO3=4,AO4=4

(c) Discuss the likely success of policies to reduce the consumption of single‑use plastic bags in cities such as Istanbul. (12)

25. June 2019 · AS Paper 1 · Q6(d) · 4 marks · AO1=2,AO2=2

(d) Calculate the annual revenue raised by charging £12 per GP visit. Assume there will be 450 million GP visits per year and 90% of these will not be charged. You are advised to show your working. (4)

26. June 2019 · AS Paper 1 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate possible ways the government could intervene to reduce the excess demand for state-funded health care. (20)

27. June 2019 · Paper 3 · Q1(d) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(d) Evaluate the microeconomic and macroeconomic effects of increased government spending on education to promote healthy eating in the UK. (25)

28. June 2019 · Paper 3 · Q1(e) · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

(e) Evaluate the likely microeconomic and macroeconomic effects of imposing a tax on HFSS foods. (25)

29. June 2018 · AS Paper 1 · Q3(b) · 2 marks · AO1=2

(b) Explain one possible reason why the state provides NHS dental treatment. (2)

30. June 2018 · AS Paper 1 · Q6(e) · 15 marks · AO1=3,AO2=3,AO3=3,AO4=6

The UK Government is considering introducing a maximum price for energy. (e) Discuss the likely microeconomic effects of this decision on energy producers and consumers. Include a supply and demand diagram in your answer. (15)

31. June 2018 · AS Paper 1 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate ways in which government intervention could be used to reduce carbon emissions. Use at least one appropriate diagram in your answer. (20)

32. June 2018 · Paper 3 · Q1(c) · 8 marks · AO1=2,AO2=2,AO3=2,AO4=2

(c) Examine the advantages of using an indirect tax as a means of reducing the use of disposable coffee cups. (8)

33. June 2017 · AS Paper 1 · Q4(b) · 1 marks ·

Steel production leads to high levels of carbon emissions. (b) Which one of the following is likely to result in an increase in carbon emissions? (1) A Introducing a tradable pollution permits scheme B Shutting down steel factories C Subsidising the steel industry to install cleaner technology D Reducing indirect taxes on steel products

34. June 2017 · AS Paper 1 · Q5(a) · 3 marks · AO1=1,AO2=1,AO3=1

(a) Explain why reducing the tuition fee cap may result in excess demand for university places. (3)

35. June 2017 · AS Paper 1 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate the impact of government intervention in the cigarette market. (20)

36. June 2017 · Paper 1 · Q7 · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

7 In 2015 a report by Public Health England recommended the imposition of a 20% tax on the sale of soft drinks that contain high levels of sugar. Evaluate the likely microeconomic effects of such a tax.

37. June 2016 · AS Paper 1 · Q2(b) · 1 marks ·

Diagram A shows the market for nursery school places. Diagram A Costs/ benefits £ MPC=MSC V R P1 Pe T MSB S MPB 0 Qe Q1 Quantity of nursery school places (b) Which one of the following measures could a government introduce to achieve the social optimum consumption of nursery school places? It could introduce a: (1) A maximum price of 0P1 per unit B subsidy of RS per unit C tax of VT per unit D minimum price of 0P1 per unit

38. June 2016 · AS Paper 1 · Q3(b) · 3 marks · AO1=1,AO2=2

(b) Explain one measure the Kenyan government could use to reduce the impact of water extraction from Lake Naivasha. (3)

39. June 2016 · AS Paper 1 · Q6(f) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(f) Evaluate the likely microeconomic effects of government intervention in the UK housing market. (20)

40. June 2016 · AS Paper 1 · Q6(g) · 20 marks · AO1=4,AO2=4,AO3=6,AO4=6

(g) Evaluate the case for government provision of goods and services such as flood defence schemes or housing. (20)

Mark schemes

1. June 2025 · AS Paper 1 · Q6(f)

2. June 2025 · AS Paper 1 · Q6(g)

3. June 2024 · AS Paper 1 · Q3(b)

4. June 2024 · Paper 1 · Q4(a)

5. June 2024 · Paper 1 · Q6(e)

6. June 2024 · AS Paper 1 · Q6(f)

7. June 2024 · AS Paper 1 · Q6(g)

8. June 2023 · AS Paper 1 · Q1(a)

9. June 2023 · AS Paper 1 · Q1(b)

10. June 2023 · AS Paper 1 · Q6(f)

11. June 2023 · Paper 1 · Q7

12. June 2023 · Paper 1 · Q8

13. June 2022 · AS Paper 1 · Q1(b)

14. June 2022 · AS Paper 1 · Q2(a)

15. June 2022 · AS Paper 1 · Q2(b)

16. June 2022 · Paper 1 · Q3(b)

17. June 2022 · AS Paper 1 · Q6(a)

18. June 2022 · AS Paper 1 · Q6(g)

19. November 2021 · Paper 1 · Q6(d)

20. October 2020 · Paper 1 · Q3(a)

21. October 2020 · AS Paper 1 · Q4(b)

22. October 2020 · AS Paper 1 · Q6(d)

23. October 2020 · AS Paper 1 · Q6(g)

24. October 2020 · Paper 3 · Q1(c)

25. June 2019 · AS Paper 1 · Q6(d)

26. June 2019 · AS Paper 1 · Q6(f)

27. June 2019 · Paper 3 · Q1(d)

28. June 2019 · Paper 3 · Q1(e)

29. June 2018 · AS Paper 1 · Q3(b)

30. June 2018 · AS Paper 1 · Q6(e)

31. June 2018 · AS Paper 1 · Q6(g)

32. June 2018 · Paper 3 · Q1(c)

33. June 2017 · AS Paper 1 · Q4(b)

34. June 2017 · AS Paper 1 · Q5(a)

35. June 2017 · AS Paper 1 · Q6(g)

36. June 2017 · Paper 1 · Q7

37. June 2016 · AS Paper 1 · Q2(b)

38. June 2016 · AS Paper 1 · Q3(b)

39. June 2016 · AS Paper 1 · Q6(f)

40. June 2016 · AS Paper 1 · Q6(g)