AQA GCSE ECONOMICS Paper 1 2021 How markets work - Question Paper 15th Nov 2021

GCSE

ECONOMICS

Paper 1 How markets work

Please write clearly in block capitals.

Centre number Candidate number

Surname

Forename(s)

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I declare this is my own work.

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Section A

Answer all questions in the spaces provided.

For questions with four responses, 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

as shown.

0 1 Which of the following best describes the central purpose of economic activity?

[1 mark]

A Earning high incomes

B Making maximum profits

C Maximising efficiency

D Producing goods and services to satisfy needs and wants

0 2 Which of the following is not one of the main economic groups?

[1 mark]

A Consumers

B Government

C Producers

D Workers

Do not write

outside the

box

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box 0 3 In which occupations will wages tend to be highest?

In those where:

[1 mark]

A workers are in excess demand.

B workers are paid on a weekly basis.

C workers need little training.

D workers require few qualifications.

0 4 Which of the following would be classed as an economic resource?

[1 mark]

A Enterprise

B Productivity

C Profit

D Wages

Turn over for the next question

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box 0 5 Which of the following would lead to a leftwards shift of the supply curve for oranges?

[1 mark]

A A fall in the cost of fertiliser

B An increase in the price of oranges

C An increase in the wages of orange pickers

D The introduction of new technology in orange growing

0 6 Which of the following is most likely to be a variable cost for a business?

[1 mark]

A Heating

B Insurance

C Packaging

D Salaries

0 7 Table 1 contains information about the number of cups of coffee served per day in a cafe.

Table 1

Number of workers 3

Total number of cups of

coffee served per day 415

Calculate the average daily productivity of each coffee shop worker, to the nearest whole

number.

[1 mark]

A 138

B 413

C 418

D 1245

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box 0 8 A firm buys a new, efficient machine and is also able to benefit from bulk-buying discounts,

leading to reduced average costs.

The firm benefits from:

[1 mark]

A external economies of scale.

B financial and risk-bearing economies of scale.

C managerial and marketing economies of scale.

D technical and purchasing economies of scale.

0 9 Table 2 contains information about prices and quantities of umbrellas demanded per

week.

Table 2

Price of umbrellas (£) Quantity of umbrellas demanded per week

£20 15 000

£17 16 500

Calculate, to 2 decimal places, the price elasticity of demand for umbrellas when the price

falls from £20 to £17.

[1 mark]

A –1.50

B –0.67

C 0.67

D 1.50

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1 0 box Figure 1 shows the quantities of tea supplied and demanded at various prices.

Figure 1

What is the excess supply at a price of £40 per kg?

[1 mark]

A 0kg

B 3500kg

C 7000kg

D 9000kg

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box 1 1 State two benefits to firms of a division of labour.

[2 marks]

Benefit 1

Benefit 2

1 2 Explain one factor that might shift the demand curve for foreign holidays to the right.