June 2013 Unit 2b
June 2013 Unit 2b
June 2013 Unit 2b
Edexcel GCE
Economics and Business
Advanced Subsidiary
Unit 2B: Business Economics
Instructions
t Use black ink or ball-point pen.
t Fill in the boxes at the top of this page with your name,
centre number and candidate number.
t Answer all questions in Section A and Section B.
t Answer the questions in the spaces provided
– there may be more space than you need.
t may use a calculator.
You
Information
t The
The total mark for this paper is 70.
t – usemarks for each question are shown in brackets
this as a guide as to how much time to spend on each question.
t your
Quality of written communication will be taken into account in the marking of
response to Question 12 in Section B. This question is indicated with an
asterisk (*)
– you should take particular care on this question with your spelling, punctuation
and grammar, as well as the clarity of expression.
Advice
t Read each question carefully before you start to answer it.
t Try toananswer
Keep eye on the time.
t Check your answers
every question.
t if you have time at the end.
Turn over
P42298A
©2013 Pearson Education Ltd.
*P42298A0120*
1/1/1/1/1/1
SECTION A
Answer ALL the questions in this section.
Write the letter of your chosen answer in the box and then explain your choice in the space
provided.
You should spend 30 minutes on this section. Use the data to support your answers where
relevant. You may annotate and include diagrams in your answers.
1 (a) In 2011 the combined market share of Tesco, ASDA, Sainsbury's and Morrisons
supermarkets was 75%.
This is best described as
(1)
A a monopoly
B an oligopoly
C monopolistically competitive
D perfectly competitive
Answer
2
*P42298A0220*
2 (a) Lloyds TSB Bank plc advises its business customers to prepare a contingency plan.
Which one of the following is most likely to reduce uncertainty for a business?
(1)
A Market research
B Government intervention
C Macroeconomic change
D Exchange rate movements
Answer
3
*P42298A0320* Turn over
3 (a) Amazon, iTunes and Argos are all online retailers that stock a wide range of
products.
An increase in online retailing has led to a decrease in
(1)
A the number of consumers
B choice of products
C prices of products
D consumer knowledge
Answer
4
*P42298A0420*
4 (a) British Airways (BA) advertises using media such as TV and national newspapers.
This policy helps to spread some of BA's fixed costs.
This is best described as
(1)
A purchasing economies of scale
B diseconomies of scale
C managerial economies of scale
D marketing economies of scale
Answer
5
*P42298A0520* Turn over
5 (a) In March 2011, the retailer Poundland reported a record annual turnover of
£642m which was a 26% rise on 2010 – at a time when consumers’ real incomes
were falling.
This suggests that Poundland sells
(1)
A luxury goods
B normal goods
C complementary goods
D inferior goods
Answer
6
*P42298A0620*
6 (a) Siemens AG had a turnover of nearly £60 billion in 2011. Siemens’ operations are
based on an empowerment culture called People Excellence.
Greater empowerment is most likely to result in
(1)
A closer supervision of the workforce
B less worker participation in decision making
C increases in productivity
D less delegation of tasks
Answer
7
*P42298A0720* Turn over
SECTION B
Answer ALL the questions in this section.
You are advised to spend 45 minutes on this section.
Evidence A
Coconut milk crisis as supermarkets run dry
A global shortage of coconut milk has led to empty supermarket shelves, leading to a
crisis for those wanting a Thai curry this weekend. Coconut milk is an essential ingredient
in many Thai dishes.
Thailand, the world’s biggest producer of coconut milk, has been hit by a drought and a
beetle infestation. This has lead to a sharp fall in the amount of coconuts being harvested, 5
with coconut yields down by 60% and a significant increase in the price of coconut milk.
Making the shortage worse has been the surge in palm oil prices, which has forced some
industrial users of palm oil – in the production of toiletries for instance – to switch to
coconuts.
The restaurant trade has been hit. Henry Dimbleby, the co-founder of Leon an 10
independent takeaway chain, said: “It’s been a nightmare. At one stage we were ringing
up our suppliers on a daily basis to find out if the boat with coconut milk – which
appeared to be the only one in the world – was going to land in the UK.”
Robert Simon, a food importer, said: “This problem is typical of the food industry in
the last couple of years; food inflation being caused by a change in weather patterns. 15
It is having dramatic effects all down the supply chain from traders to restaurants and
supermarket shoppers. Prices have at least doubled with the wholesale price for a 400ml
can of coconut milk increasing from 25p to 54p.”
(Source: adapted from http://www.telegraph.co.uk/foodanddrink/8541371/
Coconut-milk-crisis-as-supermarkets-run-dry.html)
Evidence B
8
*P42298A0820*
7 Explain one reason why the takeaway food market may be described as dynamic.
9
*P42298A0920* Turn over
8 It has been estimated that a 40% increase in the price of coconut milk would
decrease demand by 10%.
(a) Calculate the price elasticity of demand for coconut milk.
(3)
10
*P42298A01020*
9 Using a fully labelled supply and demand diagram, analyse why the price of coconut
milk has increased.
11
*P42298A01120* Turn over
10 Explain the likely impact of rising food costs on an independent takeaway business
such as Leon.
12
*P42298A01220*
BLANK PAGE
13
*P42298A01320* Turn over
The UK’s economic recovery has been described as ‘fragile’ (see Evidence B, line 3).
11 Assess two possible marketing strategies a UK business could adopt under these
circumstances.
Strategy 1
(5)
Strategy 2
(5)
14
*P42298A01420*
. . . . . . . . . . . . .................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........... ............................................................................................................................... .. . . . . . . . . . . . . . . . . . . . .
15
*P42298A01520* Turn over
*12 Evaluate the likely impact of a depreciation of the pound sterling on the:
(a) UK manufacturing sector
(7)
16
*P42298A01620*
(b) UK tourist industry.
(7)
17
*P42298A01720*
BLANK PAGE
18
*P42298A01820*
BLANK PAGE
19
*P42298A01920*
BLANK PAGE
20
*P42298A02020*