AQA A Level Economics Paper 1 2025 Mark Scheme Pdf

Download the official AQA A-Level Economics Paper 1 mark scheme for the June 2025 exam (7136/1). This **final version (v1.0)** contains full answers, examiner guidance, and detailed marking criteria used during standardisation.

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### **Section A: Context 1 – The International Rice Market**

- **Q01 (page 5): Calculation**
- India’s export share increased by **32.5 percentage points**
- Based on rise from ~8% (2010) to ~40% (2022)

- **Q02 (page 6): Data explanation**
- India controls ~40% of global exports → strong market power
- Rice price index rose from **~109 (Aug 2022) to ~139 (Oct 2023)**
- Prices rose despite falling cereal/food indices → clear supply shock impact

- **Q03 (pages 7–8): Diagram explanation (9 marks)**
- Expected: **leftward shift of supply**
- Demand is **price inelastic** → large price increase, small fall in quantity
- Strong answers include labelled diagram and logical explanation

- **Q04 (page 9): 25-mark essay**
- Maximum price (price ceiling):
- Pros: improves affordability, prevents exploitation
- Cons: shortages, black markets, reduced supply incentives
- Alternatives:
- Subsidies, imports, domestic production, rationing
- Evaluation required: **trade-offs, time lags, government vs market failure**

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### **Section A: Context 2 – UK Water Industry**

- **Q05 (page 10): Calculation**
- Median storm overflow hours = **138,500 hours**

- **Q06 (page 11): Data explanation**
- Water prices rose faster than inflation for most years
- Example: 2005 → water +9.5% vs inflation +2.5%
- Conclusion: **real-term increase in water bills since privatisation**

- **Q07 (pages 12–13): Diagram explanation (9 marks)**
- Large **Minimum Efficient Scale (MES)** → natural monopoly
- High fixed costs → barriers to entry
- Diagram: downward-sloping LRAC curve flattening at MES

- **Q08 (page 14): 25-mark essay**
- Stronger regulation vs nationalisation:
- Regulation: improves standards but may raise prices/reduce investment
- Nationalisation: improves control but costly (£14.7bn–£90bn)
- Evaluation:
- Efficiency, pricing, investment, externalities, government failure

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### **Section B: Essays**

#### **15-Mark Questions (Knowledge & Analysis)**
- **Q09 (page 16):** Private vs public vs quasi-public goods
- Key concepts: rivalry, excludability, free-rider problem

- **Q11 (page 18):** Technological progress
- Improves productivity, reduces costs, increases efficiency

- **Q13 (page 20):** Demand for labour
- Derived demand, marginal productivity theory, wage effects

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#### **25-Mark Essays (Evaluation Focus)**

- **Q10 (page 17): Oligopolies**
- Pros: innovation, economies of scale
- Cons: collusion, high prices, barriers to entry

- **Q12 (page 19): Profit maximisation**
- Traditional theory vs real-world objectives (growth, sales, satisficing)

- **Q14 (page 21): Minimum wage**
- Benefits: higher incomes, reduced inequality
- Costs: unemployment risk, inflation, regional differences
- Includes monopsony analysis

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### **Examiner Guidance (pages 3–4 & 15)**

- Uses **level-of-response marking (Levels 1–5)** for essays
- Top-band answers (21–25 marks) require:
- Strong analysis with logical chains
- Clear application to context/data
- **Well-supported evaluation + final judgement**

For example, **page 4** shows that Level 5 responses must include *“well-focused analysis and supported evaluation throughout with a clear conclusion.”*

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### **Why This Mark Scheme Matters**
- Shows **exact answers + accepted methods**
- Reveals how marks are actually awarded
- Helps you understand **examiner expectations**
- Essential for improving **essay structure and evaluation skills**

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This resource is critical for mastering A-Level Economics Paper 1, improving data response answers, and achieving top A/A* grades.

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

This mark scheme is designed for Year 13 students preparing for AQA A-Level Economics exams, particularly Paper 1 (Markets and Market Failure).

Teachers and tutors use it for accurate marking, feedback, and modelling top-level answers. It is also ideal for independent learners who want to understand how to maximise marks.