Microeconomic decision makers

Worked examples (6)

• 1Define 'money' (2 marks)
• 2Explain the functions of money (4 marks)
• 3Analyse the functions of a commercial bank (6 marks)
• 4Analyse the functions of a central bank (6 marks)
• 5Discuss whether banks are essential to an economy (8 marks)
• 6Discuss whether trade unions are good for an economy (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'limited liability' (2 marks)
• 2Distinguish public and private sectors (4 marks)
• 3Analyse the advantages of forming an Ltd (6 marks)
• 4Analyse the three types of merger (6 marks)
• 5Discuss whether a sole trader should become a PLC (8 marks)
• 6Discuss whether a horizontal merger benefits consumers (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'fixed cost' (2 marks)
• 2Calculate total revenue and profit (4 marks)
• 3Calculate TC, ATC and AFC (6 marks)
• 4Analyse economies/diseconomies on an ATC diagram (6 marks)
• 5Discuss whether a firm should always grow larger (8 marks)
• 6Discuss whether investment is best for productivity (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2, data-response calculation style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style

Worked examples (6)

• 1Define 'monopoly' (2 marks)
• 2Explain the features of perfect competition (4 marks)
• 3Analyse how competitive markets benefit consumers (6 marks)
• 4Analyse the effect of having only one firm (6 marks)
• 5Discuss whether competition always benefits consumers (8 marks)
• 6Discuss whether monopoly is always worse than competition (8 marks)

Model answers (6)

• ✓Model answer — Paper 2, Section B part (a) style
• ✓Model answer — Paper 2 short-answer style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (c) style
• ✓Model answer — Paper 2, Section B part (d) style
• ✓Model answer — Paper 2, Section B part (d) style