AQA A Level Economics Paper 1 2025 Question Paper Pdf

Download the official AQA A-Level Economics Paper 1 question paper from the May 2025 series (7136/1), sat on **Monday 12 May 2025 (morning)**. This paper focuses on **Markets and Market Failure** and is worth **80 marks over 2 hours**.

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### **Paper Structure**
- **Section A (40 marks):** Data response
- **Section B (40 marks):** Essays
- Students must answer:
- **ONE context** in Section A
- **ONE essay** in Section B

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### **Section A: Data Response**

#### **Context 1 – The International Rice Market (pages 2–3)**
This context focuses on global food markets, trade restrictions, and price volatility.

- **Extract A (page 2):**
- Table shows global rice exports rising from **35.2 million tonnes (2010)** to **55.6 million tonnes (2022)**
- India’s exports surged from **2.8 → 22.5 million tonnes**
- Graph shows rising global food prices (Figure 2)

- **Extract B (page 2–3):**
- India imposed an export ban → global price increases
- Example: rice prices in Nigeria rose **46%**
- Demand is **price inelastic** in developing countries

- **Extract C (page 3):**
- Policy responses:
- Subsidies or cash transfers
- Maximum prices (price ceilings)
- Increasing domestic production
- Highlights **trade-offs and time lags**

**Questions include:**
- Calculation of India’s export share change (2 marks)
- Data interpretation using figures (4 marks)
- Diagram-based explanation of inelastic demand (9 marks)
- **25-mark essay:** Evaluate price controls vs alternatives

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#### **Context 2 – The UK Water Industry (pages 4–5)**
This context examines regulation, monopoly power, and privatisation.

- **Extract D (page 4):**
- Table shows pollution data (storm overflow hours)
- Example: United Utilities = **425,000 hours**, total = **1,755,000 hours**
- Graph shows water prices rising faster than general prices

- **Extract E (page 4–5):**
- Firms face:
- Rising costs (labour, energy, finance)
- Infrastructure problems
- Heavy debt since privatisation

- **Extract F (page 5):**
- Debate on:
- Stronger regulation vs nationalisation
- Huge investment costs (£350bn–£600bn)
- Trade-offs between efficiency and public control

**Questions include:**
- Median calculation (2 marks)
- Real price increase explanation (4 marks)
- Diagram: minimum efficient scale & monopoly (9 marks)
- **25-mark essay:** Regulation vs nationalisation

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### **Section B: Essays (pages 6–7)**
Students choose ONE essay:

#### **Essay 1: Market Structures & Public Goods**
- Explain private vs public vs quasi-public goods (15 marks)
- Evaluate whether **oligopolies benefit society** (25 marks)

#### **Essay 2: Firms & Objectives**
- Explain impact of **technological progress** (15 marks)
- Evaluate whether firms mainly **maximise profit** (25 marks)

#### **Essay 3: Labour Markets**
- Explain demand for labour (15 marks)
- Evaluate **minimum wage effects on welfare** (25 marks)

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### **Key Skills Assessed**
- Data interpretation and calculation
- Diagram drawing and explanation
- Application of economic theory
- Extended evaluation and essay writing
- Synoptic understanding across microeconomics

For example, the **table in Extract A (page 2)** shows India’s rapid export growth, while the **price index graph** demonstrates volatility in global food prices—both crucial for linking trade policy to market outcomes.

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This paper is essential for mastering microeconomics, data response techniques, and high-level essay evaluation required for top A-Level grades.

Fully updated for the 2025/2026 academic year and optimised for instant download on markscheme.net.

This paper is designed for Year 13 students preparing for AQA A-Level Economics exams, particularly those focusing on microeconomics (markets and market failure).

Teachers and tutors use this resource for mock exams, timed essays, and data response practice. It is also ideal for independent learners aiming to refine exam technique and achieve top grades.