Model Paragraphs Negative Externalities in Consumption | A-Level Economics Model Paragraph Negative Externalities in Consumption Market failure occurs when there is a misallocation of resources. Fast food is a demerit good, as it causes negative externalities in consumption, shown by the diagram below. Negative externalities occur when there is a cost to the third party from the consumption of the good
Model Paragraphs Diseconomies of Scale | A-Level Economics Model Paragraph Explain how a firm can experience Diseconomies of Scale When a firm become larger and produces more output, they are impacted by both economies of scale and diseconomies of scale at the same time. After the minimum efficient scale, diseconomies of scale will outweigh economies of scale. Diseconomies of scale
Model Paragraphs Causes of a Price Change | A-Level Economics Model Paragraph Increase in demand Related goods Population Income One factor that could cause an increase in the price of tea is an increase in the price of coffee. Demand is the number of goods and services that people are willing and able to buy at each given price. If demand for
Model Paragraphs A-Level Economics Model Paragraphs A-Level Economics Model Paragraphs for all exam boards Year 12 Microeconomics Markets 1. Explain the causes of a price change 2. Explain the functions of the price mechanism Market failure and government intervention 1. Explain the cause of complete market failure 2. Explain the causes of partial market failure
Model Paragraphs Free Trade | A-Level Economics Model Paragraph One impact of trade agreements is lower prices. Trade agreements mean that countries can trade freely without protectionist measures such as tariffs. A tariff is a tax on imports and the diagram shows the effects of removing tariffs on the economy. The diagram shows a regular demand and supply curve
Model Paragraphs Comparative Advantage | A-Level Economics Model Paragraph One benefit of free trade is that it enables countries to specialise. Specialisation can lead to an increase in world output. Free trade is the act of trading without protecionist barriers. Comparative advantage is when a country produces the good or service with the lowest opportunity cost. Comparative advantage theory
AQA 25 mark question Evaluate the view that the supermarket sector is serving customers' interests well AQA A-Level Economics Paper 1 June 2022 Evaluate the view that the supermarket sector is serving customers' interests well. (25 marks) * Plan * Paragraph 1 * Argument: threat of collusion * Diagram: two-firm, two-outcome model, monopoly power * Evaluation: unlikely in supermarket sector due to CMA * Paragraph 2: * Clear argument:
Y12 Microeconomics Notes Consumer & Producer Surplus | A-Level Economics Notes What is consumer surplus? Consumer surplus is the difference between the price consumers are willing to pay compared to the price they actually pay. What is producer surplus? Producer surplus is the difference between the price firms are willing to sell for compared to the price they actually sell for.
Y12 Microeconomics Notes Market Failure | A-Level Economics Notes These revision notes cover everything you need to know about Market Failure for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor since
IAL 20 mark question Evaluate the disadvantages of a current account deficit Edexcel International A-Level Economics Unit 4 January 2026 A In 2023 the current account deficit on the balance of payments in South Africa was $6.14bn and in Argentina it was $21.5bn. Evaluate the disadvantages of a current account deficit. Refer to a country of your choice in
IAL Edexcel International A-Level Economics Edexcel International A-Level Economics SpecificationA-Level Economics NotesEdexcel A-Level Economics 20 Mark Question - Unit 2Edexcel A-Level Economics 20 Mark Question - Unit 3Edexcel A-Level Economics 20 Mark Question - Unit 4 A-Level Economics Tutoring I offer one-to-one and small group A-Level Economics tutoring for
AQA 15 mark question Explain the factors a profit-maximising firm will take into account when deciding whether to shut down or to carry on operating, both in the short run and in the long run AQA A-Level Economics Paper 1 June 2019 Explain the factors a profit-maximising firm will take into account when deciding whether to shut down or to carry on operating, both in the short run and in the long run. (15 marks) 1. The short-run shutdown condition is AR
AQA 10 mark question Explain why some regions of the UK suffer from structural unemployment AQA AS Economics Paper 2 June 2024 Insert Explain why some regions of the UK suffer from structural unemployment. (10 marks) 1. structural unemployment is caused by a decline in certain industries. 2. this means that there is a mismatch in skills between workers and the current job market. 3.
AQA 10 mark question Explain how the increasing use of drones is likely to affect the market for delivery workers AQA AS-Level Economics Paper 1 June 2023 Insert Extract E (lines 8–9) states: ‘Drones can reach remote areas quickly and easily, saving on labour and other costs.’ Explain how the increasing use of drones is likely to affect the market for delivery workers. (June 2023) 1. a market
AQA 15 mark question Explain how price and output are determined for a firm in a monopolistically competitive market, in both the short run and the long run AQA A-Level Economics Paper 1 June 2017 Explain how price and output are determined for a firm in a monopolistically competitive market, in both the short run and the long run. (15 marks) 1. Monopolistic competition is a market structure with low barriers to entry and slight product differentiation.
AQA 15 mark question Explain why, in long-run equilibrium, monopolistically competitive markets are neither productively nor allocatively efficient AQA A-Level Economics Paper 1 June 2023 Explain why, in long-run equilibrium, monopolistically competitive markets are neither productively nor allocatively efficient. (15 marks) 1. Monopolistic competition is a market structure with low barriers to entry and slight product differentiation. 2. The diagram below shows a firm’s cost
AQA 15 mark question Explain why the value of a currency may fall in a floating exchange rate system AQA A-Level Economics Paper 2 June 2019 Explain why the value of a currency may fall in a floating exchange rate system. (15 marks) Exchange rates are the price of a currency in terms of another. A floating exchange rate is when the exchange rate is determined by market
Edexcel 20 mark question Edexcel AS-Level Economics | 20 mark question Edexcel AS-Level Economics Paper 1 Using the concept of external costs, evaluate the possible economic effects of increased beef production. Use an appropriate diagram in your answer. (Specimen) Evaluate the impact of a guaranteed minimum price in the beef market on consumers and producers. Use an appropriate diagram in
AQA 15 mark question Explain how an appreciation of its currency is likely to affect a country’s rate of economic growth AQA A-Level Economics Paper 2 June 2020 Explain how an appreciation of its currency is likely to affect a country’s rate of economic growth. Exchange rates are the value of one currency in terms of another. A currency appreciation means that the price of the currency has increased.
AQA 15 mark question Explain how fiscal policy can be used to try to improve the supply side of an economy AQA A-Level Economics Paper 2 June 2018 Explain how fiscal policy can be used to try to improve the supply side of an economy. (15 marks) 1. Fiscal policy is the manipulation of government spending and taxation. 2. Usually, this is done to influence the level of aggregate demand
AQA 15 mark question Explain how perfect competition should lead to outcomes which are both productively and allocatively efficient AQA A-Level Economics Paper 1 June 2021 Explain how perfect competition should lead to outcomes which are both productively and allocatively efficient. (15 marks) Perfect competition is a market structure that is characterised by many buyers and sellers, firms selling identical products, perfect information, and no barriers to entry
AQA 15 mark question Explain how the price mechanism allocates resources in a market economy. AQA A-Level Economics Paper 1 June 2022 Explain how the price mechanism allocates resources in a market economy. (15 marks) In the free market, equilibrium is the price and quantity at which demand meets supply. The price mechanism has three functions (ration, incentive and signal) and this solves the
IAL 20 mark question Edexcel International A-Level Economics | 20-mark question | Unit 3 In July 2017 the German retailer Metro Group demerged into two independent companies. Its wholesale and food division became New Metro and a separate consumer electronics business, CECONOMY, was formed. Evaluate the possible benefits of a demerger for the business and its workforce. Illustrate your answer with an appropriate diagram(
Y13 Microeconomics Notes Costs & Revenue | A-Level Economics Notes These revision notes cover everything you need to know about Revenue and Costs for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor
Edexcel 8 mark question Examine the likely effects on the profitability of Indonesian rice farmers of the government’s increased investment in dams Edexcel A-Level Economics Paper 3 June 2018 Extract Examine the likely effects on the profitability of Indonesian rice farmers of the government’s increased investment in dams (Extract E, lines 43-48). Use a cost and revenue diagram to support your answer. (8 marks) A-Level Economics Tutoring I