Chapter 4: Market Failure and Government Intervention

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

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Edexcel A-level Economics Economic Growth - 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

E25: Evidence for Economic Growth

Evidence measure with unit	2020 value	2024 value	Context or unit
UK annual real GDP growth rates including the pandemic fall and recovery	100.0	108.5	index or percentage as stated
UK real GDP growth rates from 2020 to 2024	baseline	changed	UK or global context
education, infrastructure and investment affecting actual and potential growth	lower impact	higher impact	directional evidence

E25A Calculate or define the key economic measure in Economic Growth, using the data evidence provided for UK real GDP growth rates from 2020 to 2024.

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9 marksanalysehardEdexcel

UK Production Possibility Frontier: Consumer vs Capital Goods

Point A lies on the PPF (productively efficient). Point B is inside (spare capacity / unemployed resources). Point C is beyond current productive capacity. A rightward shift of the PPF represents economic growth.

E25B Using Figure 1 and your knowledge, analyse the economic effects shown by the diagram below in relation to UK real GDP growth rates from 2020 to 2024. 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

E25: Evidence for Economic Growth

Evidence measure with unit	2020 value	2024 value	Context or unit
UK annual real GDP growth rates including the pandemic fall and recovery	100.0	108.5	index or percentage as stated
UK real GDP growth rates from 2020 to 2024	baseline	changed	UK or global context
education, infrastructure and investment affecting actual and potential growth	lower impact	higher impact	directional evidence

E25C Explain how education, infrastructure and investment affecting actual and potential growth could affect economic agents in the UK economy or global economy.

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25 marksevaluatesynopticEdexcel

E25: Evidence for Economic Growth

Evidence measure with unit	2020 value	2024 value	Context or unit
UK annual real GDP growth rates including the pandemic fall and recovery	100.0	108.5	index or percentage as stated
UK real GDP growth rates from 2020 to 2024	baseline	changed	UK or global context
education, infrastructure and investment affecting actual and potential growth	lower impact	higher impact	directional evidence

E25D Evaluate the extent to which education, infrastructure and investment affecting actual and potential growth is likely to improve economic performance, using UK annual real GDP growth rates including the pandemic fall and recovery and your wider economic knowledge.

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3. Markets: Demand, Supply, Price Mechanism and Elasticity

5. Firms, Costs, Revenues, Objectives and Labour Markets

Key learning objectives

Understand the key principles behind Market Failure and Government Intervention.
Apply these ideas to exam-style questions.
Recall the essential definitions and key terms.