OCR GCSE Economics
2025 OCR GCSE (9–1) Economics J205/01 Introduction to Economics
Question paper and Marking Scheme Attached
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
2025 OCR GCSE (9–1) Economics J205/01 Introduction to Economics Question paper and Marking Scheme Attached Oxford Cambridge and RSA Wednesday 14 May 2025 – Afternoon GCSE (9–1) Economics J205/01 Introduction to Economics Time allowed: 1 hour 30 minutes You can use: • a scientific or graphical calculator • an HB pencil Please write clearly in black ink. Do not write in the barcodes. Centre number First name(s) Last name INSTRUCTIONS Candidate number • Use black ink. You can use an HB pencil, but only for graphs and diagrams. • Write your answer to each question in the space provided. If you need extra space use the lined pages at the end of this booklet. The question numbers must be clearly shown. • Answer all the questions. INFORMATION • The total mark for this paper is 80. • The marks for each question are shown in brackets [ ]. • Quality of extended response will be assessed in questions marked with an asterisk (
Typology: Exams
2025/2026
1 / 60
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download 2025 OCR GCSE (9–1) Economics J205/01 Introduction to Economics and more Exams Economics in PDF only on Docsity!
OCR GCSE Economics
2025 OCR GCSE (9–1) Economics J205/01 Introduction to Economics
Question paper and Marking Scheme Attached
Oxford Cambridge and RSA
Wednesday 14 May 2025 – Afternoon
GCSE (9–1) Economics
J205/01 Introduction to Economics
Time allowed: 1 hour 30 minutes
You can use:
- a scientific or graphical calculator
- an HB pencil
Please write clearly in black ink. Do not write in the barcodes.
Centre number
First name(s)
Last name
Candidate number
INSTRUCTIONS
- Use black ink. You can use an HB pencil, but only for graphs and diagrams.
- Write your answer to each question in the space provided. If you need extra space use the
lined pages at the end of this booklet. The question numbers must be clearly shown.
- Answer all the questions.
INFORMATION
- The total mark for this paper is 80.
- The marks for each question are shown in brackets [ ].
- Quality of extended response will be assessed in questions marked with an asterisk (*).
- This document has 24 pages.
ADVICE
- Read each question carefully before you start your answer.
© OCR 2025 [603/0143/0] OCR is an exempt Charity
DC (ST/CGW) 343979/5 Turn over
4 Diagram X Diagram Y Diagram Z
Price Price Price
D
D D
Quantity Quantity Quantity
Consumer A Consumer B Consumers A+B
What does Diagram Z show?
A Changes in tastes of consumers
B Market demand of consumers
C Perfectly inelastic demand
D Shift in the demand curve
Your answer [1]
5 The actions of one firm in a market has a considerable effect on other
firms. What type of market is this most likely to be?
A Competitive B
Monopoly C
Oligopoly D
Specialist
Your answer [1]
© OCR 2025 Turn over
6 What is not likely to result from an increase in production in an
industry? A An increase in profits
B An increase in the output of goods C
Greater environmental sustainability D
Increased economies of scale
Your answer [1]
7 The time period is very important when considering
supply. What is the best reason for this?
A Goods and services vary in how long it takes to change their supply B
Greater efficiency can be gained if more resources are available C
Production costs will rise in the short run but fall in the long run
D The quantity supplied varies directly with the change in price
Your answer [1]
8 A farmer sells bags of carrots. When the price is reduced from £2.00 per bag to £1.50,
the quantity sold increases by 15%.
The demand for carrots is
A perfectly price inelastic B
price elastic
C price inelastic
D unitary price elastic
Your answer [1]
© OCR 2025
11 A shop owner decides to close their shop for two weeks to go on holiday. As a result, they
will lose £2000 in revenue.
This is an example of
A gross pay
B market forces C
opportunity cost
D the economic problem
Your answer [1]
12 In a market where demand and prices are falling this means that fewer resources are
needed. This is an example of price acting as both
A a reflection of worth and a transmission of preferences B
a signaller and a transmission of preferences
C resource rationing and a signaller
D resource rationing and an opportunity cost indicator
Your answer [1]
© OCR 2025
13 A self-employed business consultant has received a number of payments in the last month.
Payment £
Bank interest 20
Rent from 2 properties 1200
Share dividends 250
What was the business consultant’s gross pay last month?
A £
B £
C £
D £
Your answer (^) [1]
14 Two workers asked their employer if they can specialise, instead of doing several different
jobs. What would be a direct benefit for these workers?
A Creates jobs B
Increased skill C
Less boredom D
Unemployment
Your answer [1]
15 What would an economist consider to be the best example of
money? A A cheque
B A credit card
C A fifty-pound note
D A mobile phone pay app
Your answer [1]
© OCR 2025 Turn over
19 What is the price elasticity of demand, if a price decrease leads to an increase in total
revenue? A Perfectly price inelastic
B Price elastic C
Price inelastic
D Unitary price elastic
Your answer [1]
20 What would most likely lead to a fall in the number of people applying for a new
job? A Decline in the size of the working population
B Decrease in demand for the product made C
Improvement in the working conditions
D Increase in the level of productivity
Your answer [1]
© OCR 2025 Turn over
Section B
21 Extract 1
Letusprovide Ltd
Layla and Leo run Letusprovide Ltd, a food supply firm. Layla was delighted to hear that their
local roads were to be improved, leading to an external economy of scale for the business. She
was further pleased when a letter from their bank said that interest rates were being reduced.
The fall from 6% to 5% will allow the business to borrow £10 000 more cheaply. This will help
them to grow the business.
Leo has heard that the government has blocked the two largest food supply firms from joining
together. This will mean Letusprovide Ltd can compete fairly with the other food supply
businesses. Leo says this will be good both for the business and the consumers.
Layla reminded Leo that competition was not always positive for consumers, as smaller
firms might not be able to gain the same economies of scale as large firms.
(a) Explain why improving local roads is an external economy of scale.
..................................................................................................................................................... [2]
(b) Letusprovide Ltd wants to borrow money from its bank.
Explain one other way banks can help Letusprovide Ltd to grow.
..................................................................................................................................................... [2]
© OCR 2025
(d)
(i) Calculate the saving that Letusprovide Ltd will make if it borrows £10 000 at a 5% rate of
interest instead of 6%.
Show your working.
Answer = £ ......................................................... [2]
(ii) State two reasons why businesses compete.
[2]
© OCR 2025
(iii)* Evaluate the extent to which competition is beneficial for consumers.
Use the information given in Extract 1 and your own knowledge.
..................................................................................................................................................... [6]
© OCR 2025 Turn over
(c) Using a diagram, analyse the possible consequences of a movement along ALASA’s
supply curve.
..................................................................................................................................................... [6]
© OCR 2025 Turn over
(d)
(i) Using the information in Extract 2 , draw the supply curve for
ALASA. 2500
Price (£)
Musicians
[2]
(ii) ALASA reduces all the prices of hiring musicians by £50 due to falling travel costs.
Calculate ALASA’s total revenue from two musicians being hired for two separate concerts
after the price reduction.
Show your working.
Answer = £ ......................................................... [2]
© OCR 2025
23 Extract 3
The Asian Hornet
The Asian Hornet is an insect first found in France in 2004. It has spread to many other European
countries and has now reached the UK.
The Asian Hornet has a negative impact because it destroys honeybees and many other
insects which pollinate plants, damaging the primary sector. This causes a fall in the level of
production of most fruit and vegetable crops, leading to economic losses. This has already
happened in Spain, France, Italy, and Portugal.
The Asian Hornet is very aggressive and can affect consumers and producers. The hornet’s
sting can cause a severe reaction and in extreme cases leads to death. The annual cost of
destroying the nests to get rid of the Asian Hornet is estimated to be £10.5 million for France, £
million for Italy, and £7.6 million for the UK.
Overall, the Asian Hornet will have a negative effect on the quality of life and wellbeing in the
UK, unless it can be destroyed.
(a) Explain what is meant by the primary sector.
..................................................................................................................................................... [2]
(b) Explain how the Asian Hornet can affect the producer’s role in the economy.
..................................................................................................................................................... [2]
© OCR 2025
(c) Using a diagram, analyse the effect of the spread of the Asian Hornet on the equilibrium
price and quantity of food.
..................................................................................................................................................... [6]
© OCR 2025 Turn over