Business Economics – AQA Unit 5

Readers question: Can you predict questions on Unit 5.

Popular questions include:

• Are mergers beneficial or damaging?
• Policies to reduce poverty
• Benefits and disadvantages of privatisation
• Discuss How  firms in Oligopoly compete?
• See: Micro Economic Essays

These questions will also be worth revising:

(a) Explain reasons for an increase in relative poverty despite several years of Economic Growth in the UK (20)

(b) Discuss whether increasing the National minimum wage will be helpful in reducing income inequality in the UK (30)

(b) Discuss whether the Government can reduce inequality in the UK without affecting work incentives and the efficiency of economy. (30)

(a) Explain why the Banking sector is not a contestable market (20)

(b) Discuss whether high profits and the dominant market share in the banking sector suggests that there should be more government intervention – either through windfall taxes or regulation of prices. (30)

(a) Explain how firms grow in size (20)

(b) Discuss whether Government intervention is likely to help or hinder the growth and competitiveness of firms (30)

In recent years, there has been a rapid expansion in air travel.

(a) Explain why air travel can cause market failure (20)

(b) To what extent should the government attempt to limit the growth of airtravel in the UK? (30)