Edexcel iGCSE Economics | 6 Mark Question
Paper 1
Question 1 - June 2019
Introduced in 1935, Inca Kola is a yellow-gold coloured, fizzy, soft drink that is popular all over Peru. By 1995, Inca Kola had grown to become a strong competitor of Coca-Cola. Inca Kola had a 32.9% market share compared to Coca-Cola’s 32.0% in Peru.
With reference to the data above and your knowledge of economics, analyse the possible reasons for Coca-Cola purchasing shares in Inca Kola. (6 marks)
Question 2 - June 2019
Firms in Canada, the world’s second largest country, have been struggling to find the labour needed for specialist positions such as computer engineers and web designers. The ‘Global Talent Stream’ is a government programme that provides firms with a quick way to hire highly skilled foreign workers. High costs and long time commitments often stop Canadians from training. Although a processing fee is payable for each new employee, firms have welcomed the programme.
With reference to the data above and your knowledge of economics, analyse why Canadian firms may have been struggling to hire the labour they need. (6 marks)
Question 3 - June 2019
The Competition and Markets Authority (CMA) is a UK government department that aims to increase competition. It has reminded online sellers of electrical equipment that collusion is illegal and can result in serious penalties. The CMA stated that buying electrical equipment online, such as laptops and games consoles, means consumers can search a wide range of deals from many different sellers. However, it also stated that collusion is a threat.
With reference to the data above and your knowledge of economics, analyse why collusion may be a disadvantage for online consumers buying electrical equipment. (6 marks)
Question 4 - June 2019 (R)
Robert has been running a small business from a workshop in his own house for nine years. He has been carving door signs and gifts out of locally sourced wood. Rather than producing identical, standard items, he decided to only make products to meet the personal requirements of his customers. Each order is made specifically for them and reviews are very positive. Robert’s success is due to a growing trend across the country as consumers increasingly prefer to buy locally sourced products.
Robert is the only business specialising in handmade door signs in the local area.
Despite his success, Robert has decided to keep his business small and not expand.
With reference to the data in ‘Small but successful’ and your knowledge of economics, analyse why Robert might have decided not to expand his business. (6 marks)
Question 5 - June 2019 (R)
Question 6 - June 2019 (R)
NBC Universal pays $7.75bn for Olympics through to 2032
The International Olympic Committee (IOC) announced it had agreed a $7.75bn deal with the USA television network, NBC Universal. This will extend its broadcasting rights to the Olympic Games up until 2032. The deal gives NBC Universal total control over all media platforms in the USA, including television, internet and mobile. A spokesman for NBC Universal said they were confident they would get back the high cost through advertising.
With reference to the data above and your knowledge of economics, analyse the benefits to NBC Universal of agreeing this deal with the IOC. (6 marks)
Question 7 - January 2020
McAfee is a US-based global computer software security company. In 2017, its revenue was over $2.5bn. The company operates a ‘fundraising match programme’. This means when one of its 7,600 employees participates in a fundraising activity, such as a walk, run or cycle event, the company will contribute an equal amount. For every $1 raised for charity by an employee, the company will also contribute $1 to the charity, up to a maximum of $1 000 per person.
With reference to the data above and your knowledge of economics, analyse the possible reasons why McAfee chooses not to profit maximise but instead operates the fundraising match programme.
Question 8 - January 2020
Technology has been used to perform some of the jobs previously done for many years by humans, for example, robots in factories and self-checkout machines. This substitution of capital for labour is likely to increase as technology advances. At most call centres, humans currently respond to customer queries but Google has developed an automated assistant. Many telecom firms have switched to using calls made by these automated assistants.
With reference to the data above and your knowledge of economics, analyse how the demand for labour might be affected by the use of machines.
Question 9 - January 2020
A business group representing German broadband providers asked regulators to stop the takeover by Vodafone of Liberty Global’s German operations, saying the new firm would be too dominant. In 2018, Vodafone agreed to pay $21.8bn for Liberty Global. Arguments against the takeover included that it would delay the work on building a nationwide fibre-optic network and damage competition in the cable TV market.
With reference to the data above and your knowledge of economics, analyse why governments may want to control takeovers.
Question 10 - January 2020 (R)
In the UAE, 87% of Dubai’s shopping malls are owned by just five firms. The retail sector is predicted to reach $71bn in sales by 2021 and employ 25% of Dubai’s workforce. Each shopping mall offers something different to customers, for example an indoor ski slope or an indoor aquarium. Dubai’s retailers benefit from its tourism sector, as the city ranks as one of the busiest shopping destinations in the world.
With reference to the data above and your knowledge of economics, analyse why the shopping malls in Dubai are considered to be an oligopoly. (6 marks)
Question 11 - January 2020 (R)
During the last six years, the government budget of Slovenia has raised almost €1bn in revenue from the privatisation of public sector assets. Most recently was the sale of 65% of the government shares in NLB Bank. The money raised from the sales was mostly transferred to the government budget and used for various purposes. These included the repayment of public sector debt and the long-term stability of the Slovenian pension system.
With reference to the data above and your knowledge of economics, analyse the possible benefits of privatisation for the Slovenian Government. (6 marks)
Question 12 - January 2020 (R)
Sky Team is a group of 19 airlines, including Delta Airlines, KLM, Air France and China Airlines that share operating facilities and cooperate when setting flight routes. This allows more choice for passengers. Vietnam Airlines is a small airline that became a member of Sky Team in 2010. It was the first Southeast Asian airline to join Sky Team and has become more well-known to air passengers as a result of the group’s advertising campaigns.
With reference to the data above and your knowledge of economics, analyse how a smaller airline may benefit from internal economies of scale by joining a group such as Sky Team.
Question 13 - June 2021
Bupa is an international firm that provides healthcare products to 32 million customers in 190 countries. The initial purpose of the firm was to provide health insurance. It has grown by offering a wider range of services. These include retirement homes for the elderly, eye care, hospital treatment, dental work and travel insurance.
With reference to the data above and your knowledge of economics, analyse why Bupa may have decided to operate in a wider range of markets.
Question 14 - June 2021
In the capital of Laos, Vientiane, residents and tourists can now use the LOCA app to hire a taxi. Figure 4 shows the excess supply of LOCA drivers working in an area of the city when the price of a journey is 10000 Kip.
With reference to the data above and your knowledge of economics, analyse how market forces can remove excess supply.
Question 15 - June 2021
Figure 6 shows the price elasticity of supply (PES) of bananas.
With reference to the data above and your knowledge of economics, analyse how the quantity supplied of bananas might be affected by an increase in price.
Question 16 - November 2021
Cutting Edge is a gardening firm that started trading three years ago. It often turned down work because it did not have a saw powerful enough to cut through larger trees. Once the firm expanded, Cutting Edge was able to justify buying a bigger saw.
With reference to the data above and your knowledge of economics, analyse how Cutting Edge benefitted from technical economies of scale.
Question 17 - November 2021
During the 2019 Cricket World Cup, supporters of teams such as India, Bangladesh, England, Pakistan and Sri Lanka watched matches at stadiums and on television around the world. Pepsi was one of the main advertisers during the event.
With reference to the data above and your knowledge of economics, analyse how the demand curve for Pepsi might have been affected during the 2019 Cricket World Cup.
Question 18 - November 2021
Trekking is a very popular activity for tourists in Nepal. In the main tourist town of Pokhara, there are a few large firms that offer guides, porters and resources. Some smaller firms specialise in taking customers on less popular routes, whereas others offer guides who speak different languages. It is difficult for new competitors to set up in Pokhara, as expensive permits are required.
With reference to the data above and your knowledge of economics, analyse why the market for trekking in Pokhara could be described as an oligopoly.