Pearson Edexcel Level 3 GCE

Please check the examination details below before entering your candidate information Centre Number Candidate Number Pearson Edexcel Level 3 GCE Monday 13 May 2024 Morning (Time: 1 hour 30 minutes) Economics A Paper reference 8EC0/01 Total Marks Instructions • Use black ink or ball‑point pen. centre number and candidate number. There are two sections in this question paper. • In Section B, answer all of questions 6(a) to 6(e) and one question from 6(f) or 6(g). – there may be more space than you need. Information • The total mark for this paper is 80. – use this as a guide as to how much time to spend on each question. Calculators may be used. Advice • Read each question carefully before you start to answer it. Turn over P72055A ©2024 Pearson Education Ltd. F:1/1/1/1/1/1/ SECTION A Answer 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 an answer, put a line through the box and then mark your new answer with a cross . You are advised to spend 25 minutes on this section. Use the data to support your answers where relevant. You may annotate and include diagrams in your answers. 1 Scarcity of non‑renewable resources, such as oil, is a key reason why alternative resources have been developed by economies. In recent years, within the energy market there has been a large increase in the production of wind power. (a) With reference to the information provided, explain the distinction between renewable and non‑renewable resources. 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(b) Which one of the following best describes ‘scarcity’? A An extension of the demand curve B Excess supply C Insufficient resources to satisfy wants D The misallocation of resources (1) (Total for Question 1 = 4 marks) 2 Vanilla bean prices increased to a record $600 a kilogramme in 2018 after a cyclone hit the tropical island of Madagascar, damaging crops. Madagascar supplies 75% to 80% of the world vanilla bean market. (a) Define the term ‘supply.’ (1) ............................................................................................................................... ............................................................................................................................... ...................... ............................................................................................................................... ............................................................................................................................... ...................... ............................................................................................................................... ............................................................................................................................... ...................... ............................................................................................................................... ............................................................................................................................... ...................... (b) The diagrams below show movements from position X to Y on production possibility frontiers. In which one of the diagrams does the movement from X to Y illustrate the most likely impact on Madagascar’s economy of a natural disaster such as a cyclone? (1) Output of A B Output of consumer Y goods X 0 Output of capital goods consumer goods Y X 0 Output of capital goods Output of consumer goods C D Output of consumer goods Y X X Y 0 Output of capital goods 4 0 Output of capital goods