CAPE Economics Unit 1 Paper 1 2023 Answer Walkthrough

Answers (Take these answers with a grain of salt)
1. C
2. A
3. A
4. B (changed to ‘a pivot inwards from the beef axis)
5. A
6. C
7. B
8. C
9. D
10. B
11. C
12. C
13. A
14. A
15. D
16. A
17. D
18. C
19. A
20. D
21. D
22. A
23. B
24. B
25. A
26. B
27. D
28. B (changed to ‘excludable and non-rival’)
29. D
30. C
31. A
32. A
33. C
34. C
35. A
36. B
37. C
38. D
39. D (this question is debatable but I go with my answer)
40. D
41. C
42. A (changed to ‘an increase in the level of employment)
43. C
44. D
45. B

[@1StudentEconomist]

2:28 #4 is B (a pivot inwards from the beef axis) not A 14:44 #28 is B (excludable and non-rival) not A 21:25 #42 is A (an increase in the level of employment) not D

[@Zerks700]

You got 42 right

[@1StudentEconomist]

@@Zerks700Nope go check the community post I recently made 42 is A you’ll see why.

[@Zerks700]

when since the answer change?? It’s always been D

[@kimanileslie7640]

I’m so glad I found this paper I’ve been searching everywhere! But question 42 is; D) A decrease in the quantity of labour demanded Higher wages typically increase the cost of labor for employers, leading them to reduce the number of workers they hire. In an imperfectly competitive market, firms may not have the ability to pass on higher costs to consumers through higher prices, which further compels them to cut back on the amount of labor they demand.

[@1StudentEconomist]

If we are talking about a perfectly competitive labour market then I solemnly agree with this statement but lest you forget that in an imperfectly competitive market, both the firm (usually a monopsonist) and the employees (through collective bargaining efforts in a trade union) both have the ability to influence the wage rate. With the market power of the monopsonist, he has the ability to buy labour at lower cost on the supply of labour curve under the profit maximization MCL=MRP assumption. This low wage encourages workers at the profit maximizing output to bargain for higher wages at the regular equilibrium of supply and demand of labour which induces both an increase in wage rate and employment. However, I will acknowledge that quantity of labour demanded can indeed decrease in an imperfectly competitive labour market, like you said, but that is only if the trade union bargains for a wage rate that goes above the higher wage rate where MRP=MCL. This situation is more unlikely than the increase in employment as a rational monopsonist would not agree to such terms. For further clarification and illustration, see my most recent video below: kzbin.info/www/bejne/kIPNg4CrmrmkrNE Hope this helps❤️

[@yourgirltt1162]

Thank you

[@TenaEllis]

Thank youuuu!!

[@1StudentEconomist]

Np. Take the answers with a grain of salt especially #39.

[@Buy_YT_Views_227]

LOL, I can't even... this is too much!

[@tpcinema5505]

Up ino sir