Oxford Cambridge and RSA - 2025
Wednesday 14 May 2025 – Afternoon
GCSE (9–1) Economics
J205/01 Introduction to Economics
Time allowed: 1 hour 30 minutes
(Verified Question Paper With Mark
Scheme Combined June 2025)
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2025 OCR GCSE (9–1) Economics J205/01 Introduction to Economics, Exams of Economics
2025 OCR GCSE (9–1) Economics J205/01 Introduction to Economics Time allowed: 1 hour 30 minutes (Verified Question Paper With Mark Scheme Combined June 2025) 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] DC (ST/CGW) 343979/5 OCR is an exempt Charity Turn over Section A Write your answer to each question in the box provided. 1One factor of production is labour. The quantity of labour in an economy depends on the
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Oxford Cambridge and RSA - 2025
Wednesday 14 May 2025 – Afternoon
GCSE (9–1) Economics
J205/01 Introduction to Economics
Time allowed: 1 hour 30 minutes
(Verified Question Paper With Mark
Scheme Combined June 2025)
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] DC (ST/CGW) 343979/ OCR is an exempt Charity (^) Turn over
© OCR Turn over 4 Diagram X Diagram Y Diagram Z Price (^) Price Price (^0) Quantity 0 Quantity 0 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]
D
D
D
© OCR 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 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 Turn over 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
© OCR Turn over 16 Plumbers who work for themselves are examples of individuals as A competitors B consumers C employers D producers Your answer [1] 17 What will happen to the price and quantity of most goods due to a movement along the demand curve? A price and quantity will change in opposite directions B price and quantity will change in the same direction C price will change, but quantity will stay the same D quantity will change, but price will stay the same Your answer [1] 18 The government allocates scarce resources between many uses. When they decide to spend more money on health instead of education, the government is answering a key economic question. What is the key economic question? A Are the needs of health more than the wants of education? B For whom should health be produced? C How should health be produced? D What should be produced? Your answer [1]
© OCR 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 (c) Analyse the effect of a reduction in interest rates on Letusprovide Ltd. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. .................................................................................................................................. [6]
© OCR Turn over (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. 1 .......................................................................................................................................... ............. 2 .......................................................................................................................................... ............. [2]
© OCR Turn over
.................................................................................................................................. [6]
© OCR 22 Extract 2 ALASA Alex, Ling, Amit, Sam and Azmi have recently left music college. They have decided to market themselves as ALASA offering solo musical concerts, with up to all five of them performing. Alex, acting as the business manager, pointed out that their supply is price inelastic. Alex has produced a price list, including travel costs, based on a three-hour concert. Number of musicians Total price (£) 1 300 2 700 3 1100 4 1600 5 2200 Ling thinks these prices are fair. If consumers want more musicians they must expect to pay an increasing rate, to justify higher transport and practice costs. Amit agreed, but said it was important that they established an equilibrium price and quantity as soon as possible. Sam said they needed to think carefully about their costs, as this can cause the supply schedule to shift. Azmi said that other factors can cause this to happen. (a) Explain what is meant by ‘their supply is price inelastic’. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. .................................................................................................................................. [2] (b) Explain the role of the market in determining equilibrium price and quantity. ............................................................................................................................................ .............. ............................................................................................................................................ ..............
© OCR (c) Using a diagram, analyse the possible consequences of a movement along ALASA’s supply curve. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ .............. ............................................................................................................................................ ..............
© OCR Turn over