AS & A Level Economics (9708) — May–June 2023, Paper 13

30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.

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Question 1 · 1 mark · Basic economic ideas and resource allocation - types of goods (public goods)

People plant flowers in a local park. Which statement is correct? A Flowers in parks are a public good because people can enjoy them at no charge. B Flowers in parks are a public…

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Question 2 · 1 mark · Basic economic ideas and resource allocation - scarcity, choice and opportunity cost

A government decides that all non-essential businesses must close for three months due to a disease pandemic. What is an opportunity cost of this policy? A increased leisure time…

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Question 3 · 1 mark · Basic economic ideas and resource allocation - production possibility curves

The diagram shows an economy's production possibility curve. The economy produces combinations of goods and services using all available resources. [Diagram: 'services' on the…

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Question 4 · 1 mark · Basic economic ideas and resource allocation - factors of production (enterprise)

Which economic conditions are likely to encourage an increase in enterprise? interest rates profit tax consumer confidence unemployment --- --- --- --- --- A high high high high B…

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Question 5 · 1 mark · The price system and the microeconomy - price elasticity of demand

When is the price elasticity of demand for a product most likely to be price elastic? A A large percentage of income is spent on the product. B It is measured in the short run. C…

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Question 6 · 1 mark · The price system and the microeconomy - supply (shifts in the supply curve)

What is most likely to cause a shift in the supply curve for rice? A a change in the price of the rice B a change in the price of meat C a change in the size of the rice industry…

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Question 7 · 1 mark · The price system and the microeconomy - the interaction of demand and supply (disequilibrium)

A free market is in disequilibrium with a shortage of a product. As the market moves towards equilibrium, what will happen to the price, the quantity demanded and the quantity…

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Question 8 · 1 mark · The price system and the microeconomy - demand (shifts in the demand curve)

What would not cause a shift in the demand curve for a good? A a change in the price of a complement B a change in the price of a substitute C a change in the price of the good…

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Question 9 · 1 mark · The price system and the microeconomy - supply (joint supply)

What does joint supply mean? A A firm can choose between producing a range of different goods. B A good has multiple uses. C A good is a by-product of the production process of…

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Question 10 · 1 mark · The price system and the microeconomy - price elasticity of demand

When the price of a firm's product falls by 5%, its total revenue also falls by 5%. What describes the product's price elasticity of demand? A elastic B infinite C unitary D zero

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Question 11 · 1 mark · The price system and the microeconomy - income elasticity of demand

The table shows how an individual's weekly consumption of biscuits and coffee varies with income. income ($) biscuits (packs) coffee (cups) --- --- --- 100 0 5 150 5 10 Which…

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Question 12 · 1 mark · The price system and the microeconomy - price elasticity of supply

The diagram shows four supply curves. [Diagram: 'price' on the vertical axis and 'quantity' on the horizontal axis, with origin O. Four supply curves labelled W, X, Y and Z pass…

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Question 13 · 1 mark · The price system and the microeconomy - price elasticity of supply

Product X has a price elasticity of supply (PES) of +2, whilst product Y has a PES of +0.2. Which statement about products X and Y is correct? A X has more substitutes than Y. B A…

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Question 14 · 1 mark · Government microeconomic intervention - maximum and minimum prices

There are 10 000 tickets available to watch a sports final at a national stadium. The initial market equilibrium ticket price is $20. The government decides to fix an effective…

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Question 15 · 1 mark · Government microeconomic intervention - indirect taxes on demerit goods

The diagram shows the impact of a government imposing a unit tax on a demerit good. S is the supply curve before the tax and S₁ is the supply curve after the tax. [Diagram: 'price…

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Question 16 · 1 mark · Government microeconomic intervention - policies to redistribute income and wealth

A government has a policy aim of reducing income inequality. It considers three policies. Which combination of policies would be most effective? an increase in the marginal rate…

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Question 17 · 1 mark · The macroeconomy - the balance of payments (current account)

A Bangladeshi citizen is employed as a construction worker in Qatar. He sends some of his wages to his family in Bangladesh. How will this be recorded on Qatar's balance of…

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Question 18 · 1 mark · The macroeconomy - measurement of economic activity (real and nominal GDP)

The table gives data for an economy. 2010 2011 2012 2013 2014 --- --- --- --- --- --- Gross Domestic Product (GDP) at current prices ($ billion) 200 220 240 300 320 GDP deflator…

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Question 19 · 1 mark · The macroeconomy - the balance of payments (correcting a current account deficit)

Which policy is most likely to help to correct an adverse balance on the current account of the balance of payments? A abolishing tariffs B depreciating the currency C reducing…

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Question 20 · 1 mark · The macroeconomy - measurement of economic activity (real and nominal GDP)

In year 1, a country's real GDP was $500 billion. In year 2, nominal GDP rose to $577.5 billion and the prices increased by 5%. What is the real GDP in year 2? A $4.76 billion B…

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Question 21 · 1 mark · The macroeconomy - national income statistics (GDP, GNI and NNI)

The table gives details of national income statistics for an economy. US$bn --- --- consumption 2000 investment 500 government expenditure 600 net exports −100 net foreign factor…

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Question 22 · 1 mark · The macroeconomy - the terms of trade

The table shows the relative price of exports compared with imports expressed as an index number for an economy (2013 = 100). date index --- --- 2013 100 2014 97 2015 95 Which…

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Question 23 · 1 mark · The macroeconomy - comparative advantage and specialisation

Country X and country Y each allocate half of their resources towards the manufacturing of shoes, and the other half towards the manufacturing of t-shirts. Resources can be used…

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Question 24 · 1 mark · The macroeconomy - economic growth

Which government action is least likely to prevent a fall in economic growth? A additional controls on commercial banks' lending B relaxation of rules for immigration of adult…

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Question 25 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

What is the most likely cause of an outward shift of a country's aggregate demand curve? A a decrease in the competitiveness of domestically produced products B a decrease in the…

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Question 26 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

The diagram shows the macroeconomic equilibrium output and price level changing from Y and P to Y₁ and P₁. [Diagram: 'price level' on the vertical axis and 'real output' on the…

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Question 27 · 1 mark · The macroeconomy - the balance of payments (current account)

A country had a current account surplus of $141bn. Which policy may its government implement to reduce this surplus in the short run? A a decrease in direct taxes B a decrease in…

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Question 28 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

The diagram shows aggregate demand (AD) and aggregate supply in the short run (SRAS) and the long run (LRAS). [Diagram: 'price level' on the vertical axis and 'real GDP' on the…

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Question 29 · 1 mark · The macroeconomy - protectionism (tariffs)

The diagram shows that the imposition of a tariff raises a product's world price from $10 to $14. [Diagram: 'price $' on the vertical axis and 'quantity (millions)' on the…

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Question 30 · 1 mark · The macroeconomy - inflation and deflation

Which approach would a government be most likely to use to eliminate deflation? A an increase in direct taxes B an increase in interest rates C a reduction in indirect taxes D a…

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