AS & A Level Economics (9708) — May–June 2023, Paper 32

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 · Government microeconomic intervention - asymmetric information

Studies show that some dentists replace patients’ teeth more often than is necessary. Which factor helps to explain why excessive dental treatment may take place? A the existence…

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Question 2 · 1 mark · The price system and the microeconomy - utility and indifference curves

The diagram shows an individual’s indifference curve, I₁, for apples and pears. [Diagram: vertical axis 'apples', horizontal axis 'pears'. A single indifference curve I₁, convex…

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Question 3 · 1 mark · The price system and the microeconomy - price discrimination

What is not necessary for successful price discrimination? A ability to separate markets B different price elasticities of demand in each market C monopoly power D price leadership

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Question 4 · 1 mark · The price system and the microeconomy - costs and the shut-down decision

The diagram shows the cost curves of a firm. [Diagram: vertical axis 'cost or price $', horizontal axis 'quantity' with four output levels labelled A, B, C and D from left to…

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Question 5 · 1 mark · The price system and the microeconomy - growth of firms and market structure

Steel producer X takes over its main competitor, steel producer Y. What would X expect to happen to the average revenue for its product and its long-run average cost as a result…

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Question 6 · 1 mark · Government microeconomic intervention - externalities (private, external and social benefit)

Which statement is correct? A External benefit minus private benefit equals social benefit. B Private benefit minus external benefit equals social benefit. C Social benefit minus…

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Question 7 · 1 mark · Government microeconomic intervention - moral hazard

What can be done to help to overcome moral hazard? A charging the same insurance premium to all people in the same age group B designing insurance contracts so that the insurance…

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Question 8 · 1 mark · Government microeconomic intervention - externalities of production

Which action would produce a positive externality of production? A A child is vaccinated against measles. B A consumer donates products to a local food bank. C A firm rebuilds a…

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Question 9 · 1 mark · The price system and the microeconomy - efficiency and monopoly

A privately owned sole supplier of gas operates in an unregulated market with high barriers to entry and exit. Which row is most likely to indicate the economic efficiency…

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Question 10 · 1 mark · The price system and the microeconomy - barriers to entry

A government increases the protection that patents offer to inventors of new products and processes. Which barriers to entry into an industry are higher as a result of this…

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Question 11 · 1 mark · The price system and the microeconomy - costs of production (average and marginal cost)

The table shows how a firm’s total cost changes as more workers are employed. number of workers total costs $ --- --- 1 1200 2 2000 3 2700 What would be the effect of employing a…

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Question 12 · 1 mark · Government microeconomic intervention - cost-benefit analysis

A government hopes to build an athletics stadium to hold the World Games. The stadium would have high private and external costs, but it would increase national pride. Why would…

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Question 13 · 1 mark · The price system and the microeconomy - the demand for labour

What will lead the demand curve for labour to shift to the right? A a decrease in the marginal productivity of labour B a decrease in the wage rate C an increase in the marginal…

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Question 14 · 1 mark · The price system and the microeconomy - production (average and marginal product)

The production schedule indicates how total output increases as up to five workers are employed per week. employment of workers total product (units) --- --- 0 0 1 6.0 2 13.0 3…

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Question 15 · 1 mark · Government microeconomic intervention - equity and redistribution of income

What is likely to cause a more equal distribution of income in the long run? A a reduction in the top rate of taxation B an increase in government spending on education and…

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Question 16 · 1 mark · The macroeconomy - the labour market and data interpretation

Immigrants are awarded entry points according to their ability to fulfil criteria set by the Canadian Government. A new Express Entry system for the immigration of skilled workers…

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Question 17 · 1 mark · Government microeconomic intervention - maximum price controls

A government imposes a maximum price for electricity. Which statement justifying this measure might be considered valid on economic grounds? A It will encourage electricity…

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Question 18 · 1 mark · The macroeconomy - investment (induced investment and the accelerator)

Which statement best describes demand-induced investment? A It is spending on capital goods by firms because the rate of growth in demand for final goods and services increases. B…

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Question 19 · 1 mark · Economic growth and development - policies to promote growth in low-income countries

Middle Eastern countries earn foreign exchange from exports of oil and natural gas. The World Economic Forum has encouraged oil producers to assist low-income countries in…

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Question 20 · 1 mark · The macroeconomy - the circular flow, injections/withdrawals and the inflationary gap

An open economy has injections, J, into the circular flow of income and withdrawals, W. [Diagram: vertical axis 'injections and withdrawals', horizontal axis 'national income',…

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Question 21 · 1 mark · The macroeconomy - the multiplier

Which condition will produce the highest value of the national income multiplier in an open economy with a government sector? A high average and marginal tax rates B high marginal…

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Question 22 · 1 mark · The macroeconomy - unemployment (types)

Which type of unemployment can be classified as voluntary? A cyclical B frictional C structural D technological

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Question 23 · 1 mark · Government macroeconomic intervention - fiscal policy and crowding out

Increased borrowing by the government results in higher interest charges and this leads to less private investment expenditure. Of what is this an example? A an automatic…

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Question 24 · 1 mark · Government macroeconomic intervention - macroeconomic policy objectives and conflicts

Governments set economic policy aims. What will be least likely to occur if all these aims are achieved? A a decrease in the average standard of living B a decrease in the…

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Question 25 · 1 mark · Government macroeconomic intervention - fiscal policy and macroeconomic objectives

The government decides to raise the rate of value added tax (general sales tax). What does this suggest is the government’s main macroeconomic objective? A to reduce the budget…

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Question 26 · 1 mark · The macroeconomy - exchange rates (effects of depreciation)

An economy imports most of the factors of production used in the manufacture of its exported goods. What effect would depreciation of this economy’s rate of exchange have? price…

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Question 27 · 1 mark · Economic growth and development - the Human Development Index (HDI)

The table shows the Human Development Index (HDI) values for India in 2014 and 2020. HDI value --- --- 2014 0.60 2020 0.64 Which conclusion is most likely to be drawn from the…

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Question 28 · 1 mark · The macroeconomy - exchange rates and the current account (the J curve)

The diagram shows a J curve which indicates that a fall in the exchange rate will worsen the current account position before it starts to improve. [Diagram: vertical axis showing…

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Question 29 · 1 mark · Economic growth and development - indicators of development

Which country is likely to be the most highly developed? Gini coefficient death rate relative size of tertiary sector --- --- --- --- A high high high B low low low C low low high…

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Question 30 · 1 mark · Economic growth and development - economic growth versus economic development

What is central to economic growth but not necessarily to economic development? A an expansion of the range of economic choices available to individuals B an increase in Gross…

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