AS & A Level Economics (9708) — May–June 2023, Paper 12
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →Which factor of production is needed first in order to set up a new business? A capital B enterprise C labour D land
Answer this question and get it marked →Assuming nothing else changes, which change in an economy's labour market will cause the production possibility curve to shift to the left? A an increase in worker immigration B…
Answer this question and get it marked →What is not a characteristic of a mixed economy? A The government has no role in setting prices. B The government manages taxation rights. C The government prevents firms from…
Answer this question and get it marked →What is not likely to result from the use of division of labour? A a decrease in average costs B an increase in motivation C an increase in productivity D an improvement in…
Answer this question and get it marked →Price plays a number of functions in the allocation of resources. Which statement best illustrates the function that relies upon consumer choice (sometimes known as the…
Answer this question and get it marked →Which pair of products are substitutes both in consumption and production? A barley and cotton B gold and silver C soap and toothpaste D spinach and cabbage
Answer this question and get it marked →There is a worldwide shortage of oil. The diagram shows the consumption and production of oil (billion tonnes) for selected countries. What can be concluded from the diagram? A In…
Answer this question and get it marked →The cross elasticity of demand between bus travel and rail travel is +2. A rise in the price of bus fares caused the demand for rail travel to rise by 10%. Which change in bus…
Answer this question and get it marked →A change in the price of a good causes an increase in the quantity of the good demanded. What would be the nature of the good and the direction of price change for this to be…
Answer this question and get it marked →A specific tax is placed upon each bottle of perfume sold. In the diagram, S is the supply curve before tax, St is the supply curve after tax. Which area represents that part of…
Answer this question and get it marked →The diagram shows the supply curve of a firm. Which statement about the price elasticity of supply (PES) along this curve is correct? A PES is greater than unity at all points…
Answer this question and get it marked →The diagram shows the market for electric cars with X as the initial equilibrium. What will be the new equilibrium when the price of electric car batteries falls and consumers…
Answer this question and get it marked →What would cause a market disequilibrium? A when a decrease in the demand for a product leads to a price fall that results in some producers leaving the market B when a decrease…
Answer this question and get it marked →In the diagram, area OP1M1Q1 is equal to area OP2M2Q2. What is the value of the price elasticity of demand if the price is halved from P1 to P2? A −1 B −0.5 C zero D infinity
Answer this question and get it marked →The table shows changes in a consumer's expenditure on various goods when her income increases from $20 000 to $24 000. good income $20 000: amount spent on good ($) income $24…
Answer this question and get it marked →Which combination of government measures is most likely to increase the consumption of a merit good? A setting an effective maximum price on the product and paying producers a…
Answer this question and get it marked →The table contains some figures from the balance of payments account of the United States (US) for a given year. item US$ million --- --- exports of goods 1 632 639 balance of…
Answer this question and get it marked →Which change is shown directly by the use of aggregate demand and aggregate supply analysis? A the nominal income level B the price level C the unemployment level D the wage level
Answer this question and get it marked →Why might aggregate demand increase when a country's price level falls? A Domestic interest rates will tend to fall. B Imports become more price competitive. C Real incomes fall.…
Answer this question and get it marked →What is used to convert nominal GDP to real GDP? A exchange rates B changes in the price level C interest rates D taxation
Answer this question and get it marked →The diagram shows a basic two-sector circular flow of income. What can be concluded about the direction of flows? A Consumer expenditure flows anticlockwise. B Goods and services…
Answer this question and get it marked →The table shows the types of unemployment and their possible solutions. Which combination is not correct? type of unemployment possible solution --- --- --- A technological…
Answer this question and get it marked →Which combination of policies would be most effective in reducing a balance of payments current account surplus? a decrease in tariffs on imports a devaluation of the exchange…
Answer this question and get it marked →If a country is experiencing a period of high inflation, which groups will benefit the most from this? companies that export the majority of their output fixed income earners…
Answer this question and get it marked →What will definitely change a country's terms of trade? 1 when the price of imported raw materials increases 2 a change in inflation rates 3 an appreciation of the exchange rate A…
Answer this question and get it marked →The world consists of two countries, M and N. The graphs show their production possibilities for wheat and rice. Countries M and N operate on their production possibility curves…
Answer this question and get it marked →The diagram shows the current equilibrium of an economy. The government introduces a contractionary monetary policy. What is the most likely outcome? A a fall in investment and a…
Answer this question and get it marked →A government wishes to reduce the deficit on the secondary income section of its current account. Which policy would be most effective? A an increase in subsidies to exporters B…
Answer this question and get it marked →Supply-side policies can be used to correct cost-push inflation. Which policy would best achieve this aim in the long run? A allowing trade unions to maintain work practices…
Answer this question and get it marked →Economic growth leads to increased levels of income and consumption per capita for the adult population. Which circumstances are needed for this to happen in an economy? A a…
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