The exam evaluates microeconomic concepts and market failures, emphasizing competition, automation, and inequality. Section A explores UK banking competition, focusing on market dominance, barriers to entry, and the role of challenger banks, alongside automation′s impact on employment and policy responses like Universal Basic Income and robot taxes. Section B addresses topics such as air pollution as market failure, evaluating regulation versus taxation, the implications of wealth inequality relative to income inequality, and the role of profit in market economies. Emphasis is placed on using economic models, data analysis, and evaluating government interventions to address economic challenges.