Please write clearly in block capitals.
Centre Candidate
number number
Surname
Forename(s)
Candidate re
signatu
AS
ECONOMICS
Paper 1 The Operation of Markets and Market
Failure
Time allowed: 1 hour 30 minutes
Materials
For Examiner’s Use
For this paper you must have:
the Insert Sectio Mark
a calculator. n
A
Instructions B
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. TOTAL
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.
IB/M/Jun22/E6 7135/1
, 2
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.
CORRECT METHOD WRONG METHODS
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
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]
*02
IB/M/
* Jun22/7135/1
, 3
Do not write
outside the
0 3 Figure 1 shows the long-run average cost curve (LRAC) for a firm. box
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]
Turn over ►
*03
IB/M/
* Jun22/7135/1
, 4
Do not write
outside the
box
*03
IB/M/
* Jun22/7135/1
Centre Candidate
number number
Surname
Forename(s)
Candidate re
signatu
AS
ECONOMICS
Paper 1 The Operation of Markets and Market
Failure
Time allowed: 1 hour 30 minutes
Materials
For Examiner’s Use
For this paper you must have:
the Insert Sectio Mark
a calculator. n
A
Instructions B
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. TOTAL
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.
IB/M/Jun22/E6 7135/1
, 2
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.
CORRECT METHOD WRONG METHODS
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
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]
*02
IB/M/
* Jun22/7135/1
, 3
Do not write
outside the
0 3 Figure 1 shows the long-run average cost curve (LRAC) for a firm. box
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]
Turn over ►
*03
IB/M/
* Jun22/7135/1
, 4
Do not write
outside the
box
*03
IB/M/
* Jun22/7135/1
