Hard9 marksExtended Response
How markets workGeneralMarket StructuresCompetitionAssessment

AQA GCSE · Question 21 · How markets work

Using Figure 3 and Table 3, assess whether the advantages of a competitive market such as a local farmers' market outweigh the disadvantages for consumers.

Figure 3 - Hill Green Farmers' Market
Hill Green Farmers' Market is a local village market. Many farmers come to the market to sell a wide range of fruit, vegetables, meat and other food that they have produced locally.
The Farmers' Market is well known in the region for selling high-quality, fresh food at competitive prices. It is easy for farmers to open a market stall and the set-up costs are low. In recent years, local farmers have struggled to recruit cheap labour for fruit picking and so costs of production for these farmers have begun to rise. Some customers have also complained that some market stalls have begun to look untidy.

Table 3 - Prices of selected products

Hill Green Farmers' MarketSupermarket
500 g minced beef£5.00£5.00
12 eggs£4.00£4.50
1 litre of milk£2.00£1.75
1 kg carrots£0.50£1.20

How to approach this question

1. Structure your answer with an introduction, a paragraph on advantages, a paragraph on disadvantages, and a conclusion. 2. In the advantages paragraph, use the source material to identify benefits for consumers (e.g., lower prices on some items, high quality, choice). Quote data from Table 3. 3. In the disadvantages paragraph, use the source material to identify drawbacks (e.g., higher prices on other items, untidiness, inconvenience, potential future price rises). Quote data from Table 3. 4. In the conclusion, make a judgement. 'Assess' requires you to weigh up the evidence. Conclude whether, on balance, the pros outweigh the cons, explaining that it may depend on the consumer's perspective.

Full Answer

This is an assessment question that requires you to build an argument. A good answer will extract all the relevant information for and against the farmers' market from the consumer's point of view. - **Arguments for (Advantages):** Competitive prices (carrots, eggs), high quality, freshness, wide choice. These are hallmarks of competitive markets where firms must appeal to customers. - **Arguments against (Disadvantages):** Not always cheaper (milk), untidiness (a form of non-price competition or lack thereof), inconvenience (location), potential for future price rises (due to rising costs for producers). - **The Assessment:** The final step is to weigh these points. There is no single 'right' answer, but your conclusion must be justified based on the evidence you have presented. A strong conclusion might argue that for price-conscious consumers who value freshness, the benefits are likely to outweigh the costs, whereas for time-poor consumers, they may not.

Common mistakes

Only describing the advantages and disadvantages without making a final judgement or assessment. Another common mistake is not using the data and text provided in the source material.

Practice the full AQA GCSE Economics Paper 1

27 questions · hints · full answers · grading

More questions from this exam