AQA A Level Economics Paper 1 Markets and Market Failure 2022

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IB/M/Jun22/E7 7136/1
Time allowed: 2 hours
For this paper you must have:
• an AQA 12-page Answer Book
• a calculator.
• Use black ink or black ball-point pen. Pencil should only be used for drawing.
• Write the information required on the front cover of your answer book.
The Paper Reference is 7136/1.
• In Section A, answer EITHER Context 1 OR Context 2.
• In Section B, answer ONE essay.
• The marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
• There are 40 marks for Section A and 40 marks for Section B.
• You are advised to spend 1 hour on Section A and 1 hour on Section B.
Paper 1 Markets and Market Failure

Section A
Answer EITHER Context 1 OR Context 2.
Context 1 Total for this context: 40 marks
Flexible labour markets and trade unions
Study Extracts A, B and C and then answer all parts of Context 1 which follow.
Extract A
Figure 1: Participation in platform work*,
% of UK workers, 2016 and 2019
Figure 2: Median after-tax real earnings of
working-age employees and the
self-employed, 2009/10 to 2018/19
Year Employed, £ Self-employed, £
2009/10 21 900 15 800
2010/11 21 300 15 100
2011/12 20 300 15 800
2012/13 20 800 14 200
2013/14 20 500 14 000
2014/15 20 900 15 800
2015/16 21 300 16 100
2016/17 21 400 16 300
2017/18 21 400 17 600
2018/19 21 600 16 500
Source: TUC, 2020
Note: *Platform work is defined as paid tasks that are found via
a website or ‘app’.
Source: Department for Work & Pensions, 2020
Note: Base year is 2018/19
Extract B: The gig economy
The gig economy can be defined as that part of the labour market characterised by short-term
contracts or occasional work, as opposed to permanent jobs. The rise of gig economy work has
been driven by new technology, enabling people to work from anywhere, any time. Many
self-employed people work in the gig economy through online platforms such as Uber,
Deliveroo and Airbnb. These roles often replace employee roles in sectors including cleaning,
taxi driving, pizza delivery, project managers and personal training.
Gig economy workers face higher risks and more uncertainty about the stability of their incomes
than standard workers. They tend to earn less than employees doing similar work and they also
tend to work longer hours. However, they do have greater flexibility and control over their worklife balance. People who have other responsibilities beyond work (for example childcare) may
choose to work in the gig economy because it allows them to allocate their time as they choose.
The government has pledged to combat unfair working practices associated with zero-hours
contracts and the gig economy. They are seeking to bring gig employers into line with the
standards and regulations by which other employers must abide. However, providers of meal
delivery, ride-sharing and other gig economy services warn that tighter regulations will damage
economic efficiency and employees will lose out. Gig economy defenders claim that today’s
flexible labour markets offer modern workers the opportunity to move freely between jobs and
this gives them more choice over their working hours.
Source: News reports, 2020
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