Please check the examination details below before entering your candidate information
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE
Monday 11 May 2020
Morning (Time: 1 hour 30 minutes) Paper Reference 8EB0/01
Economics B
Advanced Subsidiary
Paper 1: Markets, consumers and firms
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centre
Fill in the boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 80.
• The marks for each question are shown in brackets
– 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.
• Try to answer every question.
• Check your answers if you have time at the end.
Turn over
*P61848A0124*
P61848A
©2020 Pearson Education Ltd.
1/1/1/1/
, Answer ALL questions.
SECTION A
Read the following extracts (A and B) before answering Question 1.
Write your answers in the spaces provided.
Extract A
D.A.P. Ltd. (DAP)
DAP manufactures auto-electrical components and sells them in over 76 countries.
The components are used to replace old or damaged parts in the alternators and starter
motors of cars, buses and lorries.
Managing Director David Chadwick started the firm more than 25 years ago. At first, he 5
worked alongside two full-time employees, providing local garages with a small selection
of parts for the most popular cars of the time. Producing and selling from small business
premises, and using limited technology, DAP only just managed to break-even. David
realised he would need to expand and develop a wider range of components if he was
going to be successful. 10
At the fifth attempt, David was able to obtain a bank loan but he needed to use the
business premises as collateral. This allowed DAP to develop new products to fit a
wider variety of vehicles. However, there was still not enough money to promote DAP.
Expansion was very slow and David frequently had to spend time recruiting new workers
to replace demotivated employees, instead of achieving his objective of selling to an 15
international market.
In spite of the problems faced in the early years, DAP was eventually able to expand
internationally. By 1996, it had grown to employ more than 30 full-time members of staff
and sold 50% of its products in the export market.
To try to remain competitive DAP set up a website giving information about its product 20
availability. In an effort to make the website fully operational before a trade show in
Colombia, incorrect facts were given about a number of components. Sales to Colombia
have never recovered because of DAP’s poor reputation after many dissatisfied customers
returned the unsuitable goods. However, DAP continues to be successful elsewhere.
2
*P61848A0224*
, Extract B
Statement of comprehensive income for DAP year ending 31 December 2018
£
Sales revenue 950 000
Cost of sales 650 000
Gross profit 300 000
Expenses 120 000
Operating profit 180 000
Interest and tax 50 000
Profit for the year 130 000
Dividends 60 000
Retained profit 70 000
3
*P61848A0324* Turn over
Candidate surname Other names
Centre Number Candidate Number
Pearson Edexcel
Level 3 GCE
Monday 11 May 2020
Morning (Time: 1 hour 30 minutes) Paper Reference 8EB0/01
Economics B
Advanced Subsidiary
Paper 1: Markets, consumers and firms
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centre
Fill in the boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 80.
• The marks for each question are shown in brackets
– 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.
• Try to answer every question.
• Check your answers if you have time at the end.
Turn over
*P61848A0124*
P61848A
©2020 Pearson Education Ltd.
1/1/1/1/
, Answer ALL questions.
SECTION A
Read the following extracts (A and B) before answering Question 1.
Write your answers in the spaces provided.
Extract A
D.A.P. Ltd. (DAP)
DAP manufactures auto-electrical components and sells them in over 76 countries.
The components are used to replace old or damaged parts in the alternators and starter
motors of cars, buses and lorries.
Managing Director David Chadwick started the firm more than 25 years ago. At first, he 5
worked alongside two full-time employees, providing local garages with a small selection
of parts for the most popular cars of the time. Producing and selling from small business
premises, and using limited technology, DAP only just managed to break-even. David
realised he would need to expand and develop a wider range of components if he was
going to be successful. 10
At the fifth attempt, David was able to obtain a bank loan but he needed to use the
business premises as collateral. This allowed DAP to develop new products to fit a
wider variety of vehicles. However, there was still not enough money to promote DAP.
Expansion was very slow and David frequently had to spend time recruiting new workers
to replace demotivated employees, instead of achieving his objective of selling to an 15
international market.
In spite of the problems faced in the early years, DAP was eventually able to expand
internationally. By 1996, it had grown to employ more than 30 full-time members of staff
and sold 50% of its products in the export market.
To try to remain competitive DAP set up a website giving information about its product 20
availability. In an effort to make the website fully operational before a trade show in
Colombia, incorrect facts were given about a number of components. Sales to Colombia
have never recovered because of DAP’s poor reputation after many dissatisfied customers
returned the unsuitable goods. However, DAP continues to be successful elsewhere.
2
*P61848A0224*
, Extract B
Statement of comprehensive income for DAP year ending 31 December 2018
£
Sales revenue 950 000
Cost of sales 650 000
Gross profit 300 000
Expenses 120 000
Operating profit 180 000
Interest and tax 50 000
Profit for the year 130 000
Dividends 60 000
Retained profit 70 000
3
*P61848A0324* Turn over
