Pearson Edexcel GCE A Level In Economics A (9EC0)

Pearson Edexcel GCE A Level In Economics A (9EC0) Paper 03 Micro and Macro Economics Pearson: helping people progress, everywhere Pearson aspires to be the world’s leading learning company. Our aim is to help everyone progress in their lives through education. We believe in every kind of learning, for all kinds of people, wherever they are in the world. We’ve been involved in education for over 150 years, and by working across 70 countries, in 100 languages, we have built an international reputation for our commitment to high standards and raising achievement through innovation in education. Find out more about how we can help you and your students at: Summer 2024 Question Paper Log 74001 Publications Code 9EC0_03_2406_MS All the material in this publication is copyright © Pearson Education Ltd 2024 General Marking Guidance ● All candidates must receive the same treatment. Examiners must mark the first candidate in exactly the same way as they mark the last. ● Mark schemes should be applied positively. Candidates must be rewarded for what they have shown they can do rather than penalised for omissions. ● Examiners should mark according to the mark scheme not according to their perception of where the grade boundaries may lie. ● There is no ceiling on achievement. All marks on the mark scheme should be used appropriately. ● 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 may be limited. ● When examiners are in doubt regarding the application of the mark scheme to a candidate’s response, the team leader must be consulted. ● Crossed out work should be marked UNLESS the candidate has replaced it with an alternative response. Question Number Answer Mark 1(a) Knowledge 2, Application 2, Analysis 1 Knowledge/implicit understanding and analysis: up to 3 marks e.g. ● The percentage change in quantity demanded is less responsive to a change in price (1) ● Is relatively low e.g. between 0 and -1 (or 0 and 1) / PED1 (1) ● Diagram showing price inelastic demand (1) ● An increase in price will result in an increase in total revenue (1) ● Reference to a characteristic e.g necessity, small proportion of income, few substitutes (1) Application: up to 2 marks e.g. ● UK consumers use gas for 85% of central heating/’are some of the biggest user of gas’ (1) ● Gas generates a third of UK electricity (1) ● There is no substitute for energy, at least in the short run (1) ● Calculation of price change as percentage or percentage points (1) ● Rise from around 50p per therm in Feb 2021 to 352p per therm in Dec 2021 (1) ● ‘An almost perfect example of price inelastic demand’ (Extract A lines 7-8) (5) Question Number Answer Mark 1(b) Knowledge 2, Application 2, Analysis 2, Evaluation 2 Knowledge/analysis: up to 4 marks e.g. Knowledge of externalities/external cost e.g. ● Externalities are an effect on third parties (1) ● Outside the market mechanism (1) ● Social costs greater than private costs (1) Identification of welfare loss occurring (may be shown on diagram, in addition to up to 2 marks for a correct diagram) (1) 1 mark for a likely externality, e.g. ● Air pollution (1) ● Impact on health of population (1) ● Climate change (1) 2 marks for diagram (may be awarded as K, An, or App) 1 mark for correct MSC and MPC drawn, 1 mark for correct equilibrium shown/deadweight loss) NB If candidate does not draw a correct diagram the maximum KAA mark is 4/6