Chapter 11: Data Response, Synoptic Links and High-Mark Essay Technique

A-level EconomicsAQA / OCR / Pearson Edexcel / WJEC Eduqas12 topicsHigher

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Edexcel A-level Economics Government Intervention in Markets - Authored Long Answer Questions

Examiner-style long-answer practice with automatic marking, improvement advice and ProofCoach tracking.

4 questions47 marks70.5 min

standard / hard / synoptic

4 markscalculatestandardEdexcel

E36: Evidence for Government Intervention in Markets

Evidence measure with unit	2020 value	2024 value	Context or unit
price-cap and market-share evidence	100.0	108.5	index or percentage as stated
CMA investigations and utility-market regulation	baseline	changed	UK or global context
competition policy, regulation, privatisation or nationalisation changing market outcomes	lower impact	higher impact	directional evidence

E36A Calculate or define the key economic measure in Government Intervention in Markets, using the data evidence provided for CMA investigations and utility-market regulation.

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9 marksanalysehardEdexcel

Natural monopoly: falling LRAC in utility provision

A natural monopoly's LRAC falls throughout the relevant output range. The regulator can set price at Pr = LRAC (normal profit) or Po = MC (allocative efficiency, but requires a subsidy). Without regulation the monopoly sets the higher price Pm.

E36B Using Figure 1 and your knowledge, analyse the economic effects shown by the diagram below in relation to CMA investigations and utility-market regulation. In your answer, identify the model, curve labels, any shift shown and the likely impact.

Label the horizontal axis and vertical axis precisely with units.
Label the relevant curves and show the direction of shift.
Label the new equilibrium point and explain the change.

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9 marksexplainstandardEdexcel

E36: Evidence for Government Intervention in Markets

Evidence measure with unit	2020 value	2024 value	Context or unit
price-cap and market-share evidence	100.0	108.5	index or percentage as stated
CMA investigations and utility-market regulation	baseline	changed	UK or global context
competition policy, regulation, privatisation or nationalisation changing market outcomes	lower impact	higher impact	directional evidence

E36C Explain how competition policy, regulation, privatisation or nationalisation changing market outcomes could affect economic agents in the UK economy or global economy.

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25 marksevaluatesynopticEdexcel

E36: Evidence for Government Intervention in Markets

Evidence measure with unit	2020 value	2024 value	Context or unit
price-cap and market-share evidence	100.0	108.5	index or percentage as stated
CMA investigations and utility-market regulation	baseline	changed	UK or global context
competition policy, regulation, privatisation or nationalisation changing market outcomes	lower impact	higher impact	directional evidence

E36D Evaluate the extent to which competition policy, regulation, privatisation or nationalisation changing market outcomes is likely to improve economic performance, using price-cap and market-share evidence and your wider economic knowledge.

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Key learning objectives

Understand the key principles behind Data Response, Synoptic Links and High-Mark Essay Technique.
Apply these ideas to exam-style questions.
Recall the essential definitions and key terms.