The Market System

Worked examples (6)

• 1Explain scarcity as the foundation of economics (4 marks, Paper 1)
• 2Identify the three economic questions (3 marks, Paper 1)
• 3Identify factors of production with examples (4 marks, Paper 1)
• 4Apply opportunity cost to a government decision (5 marks, Paper 1)
• 5Distinguish renewable and non-renewable resources (4 marks, Paper 1)
• 6Explain sustainability (5 marks, Paper 1)

Model answers (4)

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

Worked examples (6)

• 1Explain why economics uses assumptions (3 marks, Paper 1)
• 2Identify key consumer assumptions (4 marks, Paper 1)
• 3Explain producer behaviour assumptions (4 marks, Paper 1)
• 4Explain why workers consider non-monetary factors (5 marks, Paper 2)
• 5Limitations of government welfare maximisation (4 marks, Paper 2)
• 6Behavioural economics insights (5 marks, Paper 2)

Model answers (4)

• ✓Model answer — 4EC1-style — Paper 2, 9 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 (6)

• 1Calculate PED and interpret (4 marks, Paper 1)
• 2Identify factors affecting PED (5 marks, Paper 2)
• 3Apply PED to total revenue (5 marks, Paper 1)
• 4Calculate and interpret YED (4 marks, Paper 1)
• 5Calculate PES and identify factors (5 marks, Paper 2)
• 6Apply elasticity to tax policy (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)

• 1Distinguish economic systems (4 marks, Paper 1)
• 2Distinguish public and private sectors (3 marks, Paper 1)
• 3Explain public goods and market failure (5 marks, Paper 2)
• 4Distinguish merit and demerit goods (4 marks, Paper 1)
• 5Evaluate the public-private balance (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)

• 1Define and distinguish externalities (4 marks, Paper 1)
• 2Calculate social cost (4 marks, Paper 2)
• 3Explain policies for negative externalities (6 marks, Paper 2)
• 4Explain why government subsidises positive externalities (5 marks, Paper 2)
• 5Evaluate carbon tax (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 (7)

• 1Explain the law of demand (4 marks, Paper 1)
• 2Identify factors that shift demand (4 marks, Paper 1)
• 3Explain the law of supply (3 marks, Paper 1)
• 4Identify factors that shift supply (4 marks, Paper 1)
• 5Explain market equilibrium (4 marks, Paper 1)
• 6Apply equilibrium changes to a scenario (6 marks, Paper 1)
• 7Apply the demand-supply framework (8 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)