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A-Level Economics Past Papers & Drilling (Paper 4): Externalities, Multiplier, Pricing
TUTORZONE ORIGINAL DRILLING MOCK · CAMBRIDGE A-LEVEL ECONOMICS (9708) PAPER 4
Written to the Cambridge 9708 syllabus (2026-2028): Paper 4 A Level Data Response and Essays, 60 marks, 2 h, 33% of A Level (Section A data response 20 + Section B micro essay 20 + Section C macro essay 20, no parts). This is a Paper 4 drilling mock: 3 questions for 60 marks with answers and techniques.
What is in A-Level Economics Paper 4?
Direct answer: Paper 4 A Level Data Response and Essays, 60 marks, 2 h, 33% of A Level (data 20 + micro 20 + macro 20, no parts).
Assessment at a glance (2027)
| Component | Content | Weighting | Duration |
|---|---|---|---|
| Paper 4 (A Level Data Response and Essays) | data response 20 + micro 20 + macro 20 | 33% A-Level | 2 h |
| Paper 2 (AS Data Response and Essays) | data response 20 + micro 20 + macro 20 | 33% A-Level | 2 h |
A-Level Economics Paper 4 drilling technique: unstructured essays need definition, diagram, explanation and evaluation, organised yourself. Show formulas for PED and the multiplier.
How this paper was built
This is a TutorZone original drilling mock: the questions follow the Cambridge 9708 structure (Paper 4, 60 marks, 33%) and the answers are our own, not Cambridge past papers or marking references.
Numerical answers (PED, multiplier) were recomputed programmatically.
Pacing
| Section | Marks | Suggested time | What to do first |
|---|---|---|---|
| Paper 4 (A Level Data Response and Essays) | 33% A-Level | 25 min data, 45 min each essay | unstructured essays (no parts) |
| Paper 2 (AS Data Response and Essays) | 33% A-Level | same pace as Paper 4 | essays in two parts |
How is the multiplier calculated?
Direct answer: multiplier = 1 / (1 – MPC); with MPC = 0.75 it is 4.
Paper 4: data response and essay drilling (3 questions, 60 marks)
Unstructured essays: definition, diagram, explanation, evaluation.
Question 1 (20 marks)
Section A: data response. Price rises from $10 to $12 and quantity falls from 100 to 70. (a) Calculate the price elasticity of demand (PED) (8). (b) Explain what PED implies for the firm’s pricing (12).
Question 2 (20 marks)
Section B: micro essay. ‘Governments should tax goods with negative externalities.’ Discuss.
Question 3 (20 marks)
Section C: macro essay. ‘Higher government spending is the most effective way to boost aggregate demand.’ Discuss.
How are negative externalities handled?
Direct answer: a tax internalises the externality and cuts consumption, but the rate is hard to set and it may be regressive.
Paper 4 answers
Question 1
(a) PED = %change Qd / %change P = (-30%) / (+20%) = -1.5 (8). (b) |PED|>1 is elastic: price rises lower revenue, so the firm should avoid big increases (12).
Question 2
A tax raises price and cuts consumption, internalising the externality (8); but the rate is hard to set and it may hit the poor regressively (6); overall it works best with regulation (6).
Question 3
Government spending multiplies AD; with MPC = 0.75 the multiplier is 4 (8); but it may raise inflation, crowd out investment and add debt (6); monetary policy is an alternative (6).
Which topics does this paper drill?
Direct answer: price elasticity, negative externalities and the spending multiplier.
Where these marks are usually lost
| Mistake | What it looks like | What it costs | Instead |
|---|---|---|---|
| Wrong PED sign | Positive PED | PED is normally negative | PED = -1.5 |
| Externality tax | Only less consumption | Mention regressive effect | tax works + regulation |
| Multiplier formula | 1/MPC | Multiplier is 1/(1-MPC) | multiplier = 1/(1-MPC) |
How to use this paper
First drill: the full 2 h on all 3 questions with no references.
Mark it: check formulas and essay structure.
Second drill: redo three to seven days later, aiming to finish inside 1 h 45 min.
What should I do after drilling this paper?
Direct answer: log questions with wrong formulas or structure; redo in three to seven days; and drill Paper 3 multiple choice.
FAQ
Is this a Cambridge past paper?
No. The questions and answers are TutorZone originals, not Cambridge past papers or marking references.
What does A-Level Economics Paper 4 test?
Data response 20 + micro essay 20 + macro essay 20 (no parts), 2 h, 33% of A Level.
How is the multiplier calculated?
Multiplier = 1 / (1 – MPC); with MPC = 0.75 it is 4.
Official references
| Resource | What to check |
|---|---|
| Cambridge A-Level Economics 9708 syllabus (2026-2028) | Confirm the Paper 1-4 marks and times |
| https://www.tutorzone.com.hk/en-alevel-economics-9708-paper-2-mock-2027/ | A-Level Economics Paper 2 drilling mock |
Related: practice area · A-Level Economics Paper 2 drilling mock
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