Business Economics

Worked examples (7)

• 1Classify costs as fixed or variable (3 marks, Paper 1)
• 2Calculate total cost and average cost (4 marks, Paper 1)
• 3Calculate revenue and profit (4 marks, Paper 1)
• 4Calculate contribution and total contribution (4 marks, Paper 1)
• 5Calculate break-even and margin of safety (5 marks, Paper 1)
• 6Effect of a cost increase on break-even (6 marks, Paper 2)
• 7Apply the shut-down rule (5 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4EC1-style — Paper 1, 4 mark explain
• ✓Model answer — 4EC1-style — Paper 1, calculation + explain
• ✓Model answer — 4EC1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Define production (3 marks, Paper 1)
• 2Classify businesses by sector (4 marks, Paper 1)
• 3Trace the chain of production (5 marks, Paper 1)
• 4Compare labour-intensive and capital-intensive production (5 marks, Paper 2)
• 5Explain sectoral shift during development (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4EC1-style — Paper 1, 8 mark explain
• ✓Model answer — 4EC1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Reasons for intervention (4 marks, Paper 1)
• 2Effect of indirect tax on cigarettes (5 marks, Paper 1)
• 3Effect of subsidy on renewable energy (4 marks, Paper 2)
• 4Rent control case (5 marks, Paper 2)
• 5Regulation vs tax for pollution (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4EC1-style — Paper 1, 8 mark explain
• ✓Model answer — 4EC1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4EC1-style — Paper 2, 9 mark evaluate
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Calculate labour productivity (3 marks, Paper 1)
• 2Adam Smith's pin factory (5 marks, Paper 1)
• 3Benefits of specialisation (5 marks, Paper 2)
• 4Drawbacks of specialisation (5 marks, Paper 2)
• 5Link productivity to wages (5 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4EC1-style — Paper 1, 8 mark explain
• ✓Model answer — 4EC1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Identify market structures (4 marks, Paper 1)
• 2Explain barriers to entry (4 marks, Paper 1)
• 3Impact of competition on consumers (4 marks, Paper 2)
• 4Oligopoly behaviour (5 marks, Paper 2)
• 5Evaluate impact of monopoly (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4EC1-style — Paper 1, 6 mark explain
• ✓Model answer — 4EC1-style — Paper 2, 8 mark explain
• ✓Model answer — 4EC1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate (challenge)

Worked examples (5)

• 1Derived demand for labour (3 marks, Paper 1)
• 2Factors affecting supply of labour (4 marks, Paper 1)
• 3Shift in labour demand (4 marks, Paper 2)
• 4Explain wage differentials (5 marks, Paper 2)
• 5Impact of minimum wage (6 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4EC1-style — Paper 1, 4 mark explain
• ✓Model answer — 4EC1-style — Paper 2, 8 mark explain
• ✓Model answer — 4EC1-style — Paper 2, 9 mark discuss
• ✓Model answer — 4EC1-style — Paper 2, 12 mark evaluate (challenge)