Pearson Edexcel GCE AS Level In Economics A (8EC0)

Mark Scheme (Results) Summer 2024 Pearson Edexcel GCE AS Level In Economics A (8EC0) Paper 01 Introduction to Markets and Market Failure General marking guidance • All candidates must receive the same treatment. Examiners must mark the last candidate in exactly the same way as they mark the first. • Mark schemes should be applied positively. Candidates must be rewarded for what they have shown they can do rather than be penalised for omissions. • Examiners should mark according to the mark scheme – not according to their perception of where the grade boundaries may lie. • All the marks on the mark scheme are designed to be awarded. Examiners should always award full marks if deserved, i.e. if the answer matches the mark scheme. Examiners should also be prepared to award zero marks if the candidate’s response is not worthy of credit according to the mark scheme. • Where some judgement is required, mark schemes will provide the principles by which marks will be awarded and exemplification/indicative content will not be exhaustive. • When examiners are in doubt regarding the application of the mark scheme to a candidate’s response, a senior examiner must be consulted before a mark is given. • Crossed-out work should be marked unless the candidate has replaced it with an alternative response. Summer 2024 Question Paper Log Number 72055 Publications Code 8EC0_01_2406_MS All the material in this publication is copyright © Pearson Education Ltd 2024 Question Number Answer Mark 1(a) Knowledge 1, Application 1, Analysis 1 Explain the distinction between renewable and non-renewable resources Knowledge/Analysis • Renewable resources e.g. can naturally replenish themselves / will not run out(1) • Non-renewables e.g. are limited in supply / cannot be used sustainably (1) (3) Application 1 Oil and/or wind power – must be linked to either renewable or renewable source (1) Question Number Answer Mark 1(b) Knowledge 1 The only correct answer is C A Is not correct as scarcity not moving along a demand curve B Is not correct as supply does not exceed demand when an item is scarce D Is not correct, there are too few resources to be allocated (1) Question Number Answer Mark 2(a) Knowledge 1 Knowledge/ Understanding 1 mark for e.g. • willingness and ability of producers to create goods and services to take them to market • the amount of a good that can be produced by a business • the quantity of a good or service that a firm is willing to sell at a given price – over a given time period (1) Question Number Answer Mark 2(b) Knowledge 1 The only correct answer is D A – is not correct, as it is an unobtainable level of resources B – is not correct as shows a movement along the PPF curve, increasing the level of consumer goods C – is not correct as displays a shift out of the PPF curve illustrating increased productive potential/ resources (1) Question Number Answer Mark 2(c) Knowledge 1 Application 1 Application 2 marks for e.g. • New supply curve drawn and labelled, showing an inwards/leftwards shift (1) • New equilibria labelled, showing a rise in price (1) (2) Question Number Answer Mark 3(a) Knowledge 1 The only correct answer is B A Is not correct as Karl Marx thinks free market economies result in exploitation of workers. C Is not correct as there are externalities in all economic systems D Is not correct as in a free market the private sector owns all resources and there is no/ very little government (1) Question Number Answer Mark 3(b) Knowledge 1, Application 1, Analysis 1 Knowledge 1 Education is paid for/ funded by government and tax revenue / positive consumption externalities (1) Education is seen as a merit good that benefits wider society (1 ) Application International education rankings / with its teenagers coming top in tests in maths, reading and science (1) Analysis • Education is underprovided in a free market as the external benefits are not considered (1) • Any explanation of the externality and its positive impact upon 3rd party (1) • Due to asymmetric information, is unclear to individuals what the full benefits are to education (1 ) • Diagram highlighting positive consumption externalities (1 AN) (3) Question Number Answer Mark 4(a) Knowledge 1 The only correct answer is C A not correct as statement 1 can be tested/ is objective B is not correct as statement 2 is subjective and is based on a value judgement D is not correct as statement 2 is subjective and is based on a value judgement (1)