Download 2O25 OCR GCSE Economics J205/01 Introduction to Economics Question p and more Exams Economics in PDF only on Docsity!
OCR GCSE
ECONOMICS
2O25 OCR GCSE Economics J205/
Introduction to Economics
Question paper with Marking scheme
attached
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
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
9 What is the best description of the role of the labour market?
A It allows workers able and willing to work to meet employers who are able and willing to offer a job
B It consists of the supply of labour by consumers and the demand for labour by firms C It
makes sure there is a competitive market for the skills offered by labour
D Negotiations take place between workers and employers to set the wage rate
Your answer [1]
10 The diagram shows the demand and supply for apples.
Price
S
P
D
0
Quantity
If the price is currently P
what would be the most likely result?
A Equilibrium price will rise
B More buyers will enter the market
C The market will be in equilibrium
D There will be excess supply
Your answer (^) [1]
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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]
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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 2025
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
(c) Analyse the effect of a reduction in interest rates on Letusprovide Ltd.
..................................................................................................................................................... [6]
© OCR 2025 Turn over
(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
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 Total price
musicians (£)
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.
..................................................................................................................................................... [2]
© OCR 2025
(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
(iii)* Evaluate the importance for consumers of ALASA having a price inelastic supply.
Use the information given in Extract 2 and your own knowledge.
..................................................................................................................................................... [6]
© OCR 2025 Turn over
