OCR A Level Economics
OCR A Level Economics Introduction to Microeconomics Exam Questions
Free OCR A Level Economics exam questions for Introduction to Microeconomics, with a mark scheme for every pack. Covers scarcity and choice, opportunity cost, production possibility curves, demand and supply, elasticities, market equilibrium and the price mechanism.
Introduction to Microeconomics exam questions
1 question pack of real past exam questions, each with its mark scheme. Do not stop after a few: answer as many as you can without notes, then mark every answer with the mark scheme. The more questions you do, the more quickly you will spot how examiners ask about each idea.
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A-Level Economics Flashcards for 2027 Onwards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Then test yourself with the questions on this page.
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About OCR A Level Economics Introduction to Microeconomics
Introduction to Microeconomics is the foundation of OCR A Level Economics. It covers the basic economic problem, how economists use models, and how competitive markets work through demand and supply. You learn the elasticities of demand and supply, consumer and producer surplus, and how the price mechanism allocates resources. These tools are used throughout the Microeconomics paper and in the synoptic Themes in Economics paper. Examiners often set short calculation questions on elasticity, data-response tasks that ask you to explain changes in a market using a diagram, and extended answers that require you to apply theory to an unfamiliar context.
What you need to know
- Scarcity and choice The basic economic problem arises because wants are unlimited and resources are scarce. Opportunity cost, the factors of production and the distinction between positive and normative statements.
- Production possibility curves A PPC shows maximum combinations of two goods. It illustrates opportunity cost, productive efficiency, unemployment of resources and economic growth.
- Demand and supply Determinants of demand and supply, movements along and shifts of the curves, and the role of the price mechanism (rationing, incentive and signalling) in reaching equilibrium.
- Elasticities PED, YED, XED and PES: formulas, interpretation, determinants and their significance for firms, consumers and government, including the link between PED and total revenue.
- Consumer and producer surplus Consumer surplus is the area above price and below demand; producer surplus is the area below price and above supply. Changes in market conditions change both surpluses.
- Rational and behavioural decision making The assumption of rational economic agents and why real behaviour can differ, for example through bounded rationality, heuristics and the influence of others.
Common mistakes in Introduction to Microeconomics
- Shifting the demand curve when the good's own price changes. That is a movement along the curve.
- Inverting the elasticity formula. Always put the percentage change in quantity on top.
- Saying PES can be negative. Supply normally rises with price, so PES is positive.
- Drawing diagrams without labels. Label axes (price and quantity), curves, original and new equilibrium points.
- Writing generic answers to context questions. OCR questions are often set in an unfamiliar market, so refer to the data given.
Try three Introduction to Microeconomics exam-style questions
1. The price of a concert ticket falls from 50 pounds to 40 pounds and the quantity demanded rises from 1,000 to 1,300. Calculate the price elasticity of demand. (2 marks)
Show the mark scheme answer
% change in price = -20%; % change in quantity demanded = +30%; PED = 30 / -20 = -1.5, so demand is price elastic.
2. Explain how the price mechanism allocates resources when demand for electric cars rises. (4 marks)
Show the mark scheme answer
Increased demand creates excess demand at the original price; price rises, rationing the cars to those willing to pay most; higher price signals that consumers want more; incentive of higher profit leads firms to increase supply and move resources into the market; new equilibrium at higher price and quantity.
3. With the help of a diagram, explain the effect on consumer surplus of a fall in supply of coffee beans. (4 marks)
Show the mark scheme answer
Supply shifts left; equilibrium price rises and quantity falls; consumer surplus, the area under demand and above price, falls; diagram showing the smaller consumer surplus triangle.
Introduction to Microeconomics FAQs
What does OCR A Level Economics Introduction to Microeconomics cover?
It covers scarcity and choice, production possibility curves, demand, supply and the price mechanism, elasticities and consumer and producer surplus.
Which paper is Introduction to Microeconomics examined in?
It is examined in Paper 1, Microeconomics (H460/01), and it can also appear in Paper 3, Themes in Economics.
Which elasticity formulas do I need?
PED, YED and XED all have percentage change in quantity demanded on top; PES has percentage change in quantity supplied on top. The bottom is the percentage change in own price, income or the price of the other good.
