GCE Economics EC3 1133-01
WJEC 2014 Online Exam Review GCE Economics EC3 1133-01 All Candidates' performance across questions
Question Title 1 2 3 4 5 6 7 8 9 10
N 837 838 838 836 836 837 836 228 481 127
Mean 3.2 5.3 2.6 3.5 3.9 4.4 5.2 12.6 14 13.4
SD 0.9 2 1 0.8 1.8 1.3 1.8 2.9 3.9 2.9
Max Mark 4 8 4 4 6 6 8 20 20 20
FF 80 66.7 64.1 86.5 64.5 73.7 64.8 62.8 69.9 66.9
Attempt % 99.9 100 100 99.8 99.8 99.9 99.8 27.2 57.4 15.2
Question
GCE Economics EC3 1133-01 10 9 8 7 6 5 4 3 2 1
66.9 69.9 62.8 64.8 73.7 64.5 86.5 64.1 66.7 80 0
10
20
30
40
50
60
Facility Factor %
70
80
90
100
1 3
8
3 Examiner only
2. INDIVIDUAL FIRM
PRICE S
MC
PRICE REVENUE COSTS
P1
AC
P1
Q1
D OUTPUT (millions per week)
D = AR = MR
Q1
OUTPUT (hundreds per week)
The diagram above shows a firm operating in a perfectly competitive market in long-term equilibrium.
(a) Adapt the diagrams to show how the firm’s price, output and profits will be affected by an [4] increase in demand in the short-run.
(b) Explain what will happen to the firm’s price, output and profits in the long-run.
113 3 010 0 03
INDUSTRY
[4]
8
© WJEC CBAC Ltd.
(1133-01)
Turn over.
4 3. A car manufacturer is faced with a large increase in demand for its product. As a result it needs to increase its production.
Examiner only
SRAC = Short run average costs LRAC = Long run average costs
Costs SRAC1 SRAC2
AC1 AC2
LRAC Q1
Q2
Output
Using the diagram explain why its long run costs fall when its output expands from Q1 to Q2. [4]
4
© WJEC CBAC Ltd.
(1133-01)
11 Examiner only
SECTION B Answer one question from this section. 8.
“The Government should use taxes and subsidies to encourage people to use buses and trains rather than private cars.” Discuss. [20]
© WJEC CBAC Ltd.
(1133-01)
Turn over.
Question Title 1 2 3 4 5 6 7 8 9 10
N 837 838 838 836 836 837 836 228 481 127
Mean 3.2 5.3 2.6 3.5 3.9 4.4 5.2 12.6 14 13.4
SD 0.9 2 1 0.8 1.8 1.3 1.8 2.9 3.9 2.9
Max Mark 4 8 4 4 6 6 8 20 20 20
FF 80 66.7 64.1 86.5 64.5 73.7 64.8 62.8 69.9 66.9
Attempt % 99.9 100 100 99.8 99.8 99.9 99.8 27.2 57.4 15.2
Question
GCE Economics EC3 1133-01 10 9 8 7 6 5 4 3 2 1
66.9 69.9 62.8 64.8 73.7 64.5 86.5 64.1 66.7 80 0
10
20
30
40
50
60
Facility Factor %
70
80
90
100
1 3
8
3 Examiner only
2. INDIVIDUAL FIRM
PRICE S
MC
PRICE REVENUE COSTS
P1
AC
P1
Q1
D OUTPUT (millions per week)
D = AR = MR
Q1
OUTPUT (hundreds per week)
The diagram above shows a firm operating in a perfectly competitive market in long-term equilibrium.
(a) Adapt the diagrams to show how the firm’s price, output and profits will be affected by an [4] increase in demand in the short-run.
(b) Explain what will happen to the firm’s price, output and profits in the long-run.
113 3 010 0 03
INDUSTRY
[4]
8
© WJEC CBAC Ltd.
(1133-01)
Turn over.
4 3. A car manufacturer is faced with a large increase in demand for its product. As a result it needs to increase its production.
Examiner only
SRAC = Short run average costs LRAC = Long run average costs
Costs SRAC1 SRAC2
AC1 AC2
LRAC Q1
Q2
Output
Using the diagram explain why its long run costs fall when its output expands from Q1 to Q2. [4]
4
© WJEC CBAC Ltd.
(1133-01)
11 Examiner only
SECTION B Answer one question from this section. 8.
“The Government should use taxes and subsidies to encourage people to use buses and trains rather than private cars.” Discuss. [20]
© WJEC CBAC Ltd.
(1133-01)
Turn over.
