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Mark Scheme (Results) Summer 2015 Pearson Edexcel International Advanced Subsidiary in Economics (WEC01/01) Unit 1: Markets in Action
Mark Scheme (Results) Summer 2015 Pearson Edexcel International Advanced Subsidiary in Economics (WEC01/01) Unit 1: Markets in Action
Mark Scheme (Results) Summer 2015 Pearson Edexcel International Advanced Subsidiary in Economics (WEC01/01) Unit 1: Markets in Action
Summer 2015
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Summer 2015
Publications Code IA041316
All the material in this publication is copyright
© Pearson Education Ltd 2015
General Marking Guidance
• All candidates must receive the same treatment. Examiners must mark the first
candidate in exactly the same way as they mark the last.
• Mark schemes should be applied positively. Candidates must be rewarded for
what they have shown they can do rather than penalised for omissions.
• Examiners should mark according to the mark scheme not according to their
perception of where the grade boundaries may lie.
• There is no ceiling on achievement. All marks on the mark scheme should be used
appropriately.
• All the marks on the mark scheme are designed to be awarded. Examiners should
always award full marks if deserved, i.e. if the answer matches the mark scheme.
Examiners should also be prepared to award zero marks if the candidate’s
response is not worthy of credit according to the mark scheme.
• Where some judgement is required, mark schemes will provide the principles by
which marks will be awarded and exemplification may be limited.
• When examiners are in doubt regarding the application of the mark scheme to a
candidate’s response, the team leader must be consulted.
• Crossed out work should be marked UNLESS the candidate has replaced it with an
alternative response.
Section A: Supported multiple choice
NB: Candidates may achieve up to 3 explanation marks even if the incorrect
option is selected.
Rejection marks
• Option A: incorrect as Statement is not normative as
it has statistics e.g. 500 baht so is positive (1)
• Option B: incorrect as statement 1 has statistics so is
positive and statement 2 has value judgement e.g.
fair so normative (1)
• Option C: incorrect as statement 2 is normative as it
has a value judgement(1)
(4)
Question Answer Mark
Number
2 Answer C (1 mark)
Rejection marks
• Option A: Incorrect because X shows efficient
allocation of resources in first time period and Y is
efficient allocation in second time period/ shows
economic growth in terms of increased productive
potential (1)
• Option B: Both X and Y are efficient allocation of
resources but shows the economy experiencing
decreased productive potential (1)
(4)
• Option D: X is efficient allocation of resources and
moves to inefficient allocation where resources are
wasted. (1)
Question Mark
Number
3 C
Rejection marks
• Option A: Incorrect as renewable in Brazil
Hydro+ other renewable= 29+21+50 % which is not
greater than 51% (1)
• Option B: Incorrect as non-renewable in
Brazil- Other non-renewable +coal+natural
gas+oil= 1+3+7+39= 50% which is not greater than
51% (1)
• Option D: incorrect as hydroelectric is 29%
and oil is greater than this at 39% (1)
(4)
Question Answer Mark
Number
4 Answer D (1 mark)
• Rejection marks
• Option A: the consumers here are not likely to feel
valued as the dentist is offering unnecessary
treatments (1)
• Option B: Incorrect as private benefits are likely to
exist but third parties are unlikely to benefit/ non-
essential work is likely to incur costs rather than any
external benefits.(1)
• Option C: Incorrect as there is rivalry for dental
(4)
appointments and excludability as others do not
benefit from the treatment of a person/ the free
rider problem is not prevalent for dental
appointments (1)
Question Answer Mark
Number
5 A (1 mark)
Rejection marks
• Option B: the subsidy will encourage people to move
to the area and increase the supply of labour. (1)
• Option C: Occupational immobility is where labour
finds it difficult to move between occupations and
this is unlikely when the subsidy is offered. (1)
• Option D: incorrect as a subsidy would lower the cost
of moving there and this should encourage labour to
move to the location- this increases the mobility of
labour (1)
(4)
Question Answer Mark
Number
6 Answer C (1 mark)
Rejection marks
• Option A: milk and cheese are not substitutes as the
price of milk rising will not cause people to switch to
cheese. (1)
• Option B: Incorrect as computer consoles and games
(4)
are compliments and are likely to have XED<0 (1)
• Option D: incorrect as likely to be unrelated goods
with XED=0 (1)
Question Answer Mark
Number
Q7 Answer C (1 mark)
Rejection marks
• Option A incorrect as Social optimum quantity is
A< market equilibrium quantity B (1)
• Option B as third parties experience a cost there
is no gain for society of this over consumption (1)
• Option D The subsidy would increase production
and increase the size of over consumption/
welfare loss./ indirect tax would help reach the
social optimum (1) (4)
Question Answer Mark
Number
8 Answer B (1 mark)
Rejection marks
• Option A: if they were poor at computation they
would not necessarily calculate that they would
be worse off and fewer may switch (1)
• Option C if consumers were habitual they would
continue to stay with their current supplier- the
fact they moved shows they were less habitual (1)
• Option D: consumers would seek to maximise and
NOT minimise their total utility (1)
(4)
Section B: Data response
NB: KAA marks relates to those awarded for AO1, AO2 and AO3
Wage per S
clothing
worker
W1
W D1
D
Q Q1
Q1 Quantity
Disadvantages
• Risks if demand/ price falls- 80% of exports affected
• Less choice in terms of employment for workers
• Low wage employment- better to specialise on
products where profit margins are larger
(6)