Pearson Edexcel Economics A · 9EC0/01 · 1.1.1 and 1.2.3

A Section A mini-sample

Mini-paper · 14 marks · about 17 minutes · calculator allowed

Two data-response parts, then six one-mark questions.

Answer every question.

01.1 · 4 marks

The rail operator raised its fare in July. School holidays also began, and a competing bus operator cut its fare from £3.00 to £2.70.

Observed fares and journeys
Month	Average rail fare (£)	Rail journeys
June	10	10000
July	11	9600

Using June as the base, calculate the implied price elasticity of demand if other demand factors are held fixed. Explain the magnitude. Show working.

Your answer and working

01.2 · 4 marks

Explain why the two-month comparison cannot establish that the rail fare rise caused the whole fall in journeys.

Your answer and working

02 · 1 mark

What does the assumption 'ceteris paribus' mean in an economic model?

Select one answerAll other relevant factors are held constantThe model is always correct in its predictionsConsumers are perfectly rational and fully informedPrices are fixed by the government for the whole period

03 · 1 mark

Why is it harder for economists than for chemists to run controlled experiments?

Select one answerEconomists do not use modelsEconomic behaviour never changes, so there is nothing to testEconomic data are never published in enough detail to test ideasWhole economies cannot be isolated, repeated or held constant

04 · 1 mark

A model predicts that a rise in bus fares reduces bus journeys. Fares rose and journeys also rose. Which change is most likely to explain this without rejecting the model?

Select one answerThe model assumed ceteris paribusBus companies bought new busesPetrol prices rose sharply in the same yearBus fares rose further the next year

05 · 1 mark

Town A introduced a new policy and its unemployment fell 3 percentage points. Similar Town B, with no policy, saw a fall of 1 point. What is the best estimate of the policy's effect?

Select one answerAbout 2 percentage pointsAbout 1 percentage pointAbout 3 percentage pointsAbout 4 percentage points

06 · 1 mark

Which is the main purpose of an economic model?

Select one answerTo simplify reality so that one mechanism can be explained and testedTo describe every detail of the real economy as accurately as possibleTo prove that a policy is fairTo replace the need for evidence when governments make economic policy decisions

07 · 1 mark

Unemployment in a region fell after a training scheme began. Which statement goes beyond the evidence?

Select one answerThe scheme may have contributed to some of the fallOther factors may also have changedUnemployment fell in the region after the scheme beganThe scheme caused the whole fall in unemployment