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Pearson Edexcel Level 3 GCE
Monday 22 May 2023
Afternoon (Time: 2 hours) Paper reference 9EB0/02
Total Marks
Economics B
Advanced
PAPER 2: Competing in the global economy
You do not need any other materials.
Instructions
• Use black ink or ball-point pen.
• Fill in the boxes at the top of this page with your name,
centre number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• Calculators may be used.
Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• Check your answers if you have time at the end.*P72978A0224*
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2
Answer ALL questions.
SECTION A
Read the following extracts (A to D) before answering Question 1.
Write your answers in the spaces provided.
Extract A
UK restaurant sector in March 2022
Restaurants face food, wage and energy inflation, while real household incomes are
falling. Around 700 chain restaurants have closed since March 2020, according to the
Local Data Company (LDC), which monitors chain restaurants. The Restaurant Group,
which took over Frankie & Benny’s, Garfunkel’s and Chiquito and Casual Dining Group,
which took over Café Rouge and Bella Italia, have now closed dozens of their restaurants.
However, small independent restaurants have stepped into the gaps left by the
chains. The number of local restaurants has increased by 3.7% (888) since March 2020,
according to LDC. Cheaper rents have made it easier for entrepreneurs to start new
restaurant businesses.
(Source: adapted from https://www.theguardian.com/business/2022/mar/26/uk-casualdining-covid-independent-restaurants)
Extract B
The growth of dark kitchens
Imagine a restaurant. Remove the tables, customers and restaurant employees. Replace
these with an app and you have a dark kitchen. Dark kitchens are designed exclusively
for efficiency; to cook, pack and deliver takeaway meals as quickly as possible. The idea is
they help existing restaurant chains reach customers further away from their restaurants,
which in turn do not become too busy.
There has been substantial growth in the number of dark kitchens particularly in London,
Manchester and Leeds. They are industrial-scale kitchens, located in warehouses in
low-cost areas. While Food Stars, owned by Los Angeles based CloudKitchens, is the
largest operator of dark kitchens in the UK, another multinational Deliveroo launched
Deliveroo Editions rentable kitchens in 2017. In addition, Dishoom, Rosa’s Thai, Five Guys
and Chinatown dim sum restaurant, Tao Tao Ju, have all entered this market.
However, there have been growing concerns about dark kitchen sites being located
close to residential areas. These concerns often relate to abuse from delivery drivers
and finding ingredients, including raw meat, dumped in the street. There have also
been concerns about poor working conditions and low pay for employees in these
dark kitchens.
(Source: adapted from https://www.theguardian.com/commentisfree/2022/jan/17/darkkitchens-food-delivery-apps-inside-kitchen-work and https://www.timeout.com/london/
news/the-mystery-of-londons-dark-kitchens-041322)
5
10
5
10
15 *P72978A0324* Turn over 3
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Extract C
UK monthly consumer price index (CPI) September 2021 to March 2022 (2015 = 100)
Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22
118
117
116
115
114
113
112
111
110
Month-Year
CPI
112.4
113.6
114.5
115.1
114.9
115.8
117.1
(Source: adapted from https://www.ons.gov.uk/economy/inflationandpriceindices)
Extract D
Total household expenditure on takeaway meals in the UK 2009, 2012 and 2014 to
2021 (£bn)
2009
7.4
2012
8.8
2014
9.3
2015
9.5
2016
9.9
2017
10.1
2018
10.4
2019
10.6
2020
10.9
2021
11.2
12.5
10.0
7.5
5.0
2.5
0
Year
Spending in
£bn
(Source: adapted from https://www.statista.com/statistics/584999/takeaways-householdspending-united-kingdom-uk/)*P72978A0424*
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4
1 (a) Using the data from Extract C calculate, to 2 decimal places, the rate of inflation in
March 2022.
You are advised to show your working.
(4)
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(b) With reference to Extract C, explain in which month there was deflation and in
which month there was disinflation.
(4)
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6
Median nominal annual earnings for full-time employees in the UK increased from
£25 806 in 2009 to £31 285 in 2021.
In the same period, there was an increase of 52% in demand for takeaway meals.
(c) Using this data, calculate, to 2 decimal places, the income elasticity of demand for
takeaway meals from 2009 to 2021. You are advised to show your working.
(4)
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(d) Analyse two ways small firms might survive in the competitive restaurant market.
(6 [Show Less]