For Examiners Use - Materials For this paper you must have: • the...

*JUN257136301 *

IB/M/Jun25/G4001/V9 7136/3

For Examiner’s Use Section Mark A B TOTAL

Thursday 5 June 2025 Morning Time allowed: 2 hours

Materials

For this paper you must have:

• the Insert • a calculator.

Instructions • Answer all questions.• Use black ink or black ball -point pen. Pencil should only be used for drawing.• Fill in the boxes at the top of this page.• You will need to refer to the Insert provided to answer Section B.• You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages.• If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s).• Do all rough work in this answer book. Cross through any work that you do not want to be marked.

Information • The maximum mark for this paper is 80.• The marks for questions are shown in brackets.• No deductions will be made for wrong answers.Please write clearly in block capitals.Centre number

Candidate number

Surname

Forename(s)

Candidate signature

I declare this is my own work.A-level

ECONOMICS

Paper 3 Economic Principles and Issues 1 / 4

2

*02* IB/M/Jun25/7136/3

Do not write outside the box

Section A

Answer all questions in this section.

Only one answer per question is allowed.

For each question completely fill in the circle alongside the appropriate answer.

CORRECT METHOD

WRONG METHODS

If you want to change your answer you must cross out your original answer as shown.

If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown.

• 1

Which one of the following best describes mandated choice?[1 mark]

A A limited range of options is provided

B Individuals are required by law to choose an option

C Options are framed to influence the outcome of decisions

D The option is selected automatically if an alternative is not chosen

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3

*03* Turn over ►

IB/M/Jun25/7136/3

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• 2

Figure 1 shows a production possibility diagram for an economy where goods and services are produced in the private and public sectors. The economy is currently producing at point Y.

Figure 1

Following a change in government, it is decided that the output of public sector goods and services should be increased by VW.

What is the opportunity cost, in terms of private sector output, of this reallocation of resources?[1 mark]

A OS

B OT

C ST

D YZ

Turn over for the next question

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4

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Do not write outside the box

• 3

Which one of the following best describes how a social scientist would develop an economic theory?[1 mark]

A Apply logic to make connections between normative and positive economic concepts

B Create a hypothesis and test whether it can predict the behaviour of economic agents

C Develop a number of policies and test whether they are successful in the real world

D Form a set of value judgements and test whether they are supported by statistical data

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