AS & A Level Economics (9708) — May–June 2023, Paper 33

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 · The price system and the microeconomy - utility and marginal utility

What does the marginal utility diagram show? [Diagram: axes of 'utility' (vertical) and 'quantity' (horizontal), with origin O. A downward-sloping straight line, labelled…

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Question 2 · 1 mark · The price system and the microeconomy - efficiency and Pareto improvements

The initial allocation of goods between three consumers is shown. consumer 1 consumer 2 consumer 3 total --- --- --- --- 2 5 10 17 Which row shows a Pareto improvement in the…

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Question 3 · 1 mark · The price system and the microeconomy - indifference curve analysis

Which assumption in relation to an indifference theory diagram is not correct? A The consumer's income may change. B The consumer may change their satisfaction-maximising…

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Question 4 · 1 mark · The price system and the microeconomy - types of efficiency

Which type of efficiency is shown by the shift from long-run average cost curve 1 (LRAC1) to long-run average cost curve 2 (LRAC2)? [Diagram: axes of 'price' (vertical) and…

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Question 5 · 1 mark · The price system and the microeconomy - firms' objectives (revenue maximisation)

A firm wishes to maximise its revenue. Which condition must be met to achieve this goal? A average cost = average revenue B marginal cost = average revenue C marginal cost =…

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Question 6 · 1 mark · The price system and the microeconomy - short-run and long-run shut-down conditions

The costs and revenue of four firms operating in a monopolistically competitive market are shown. firm total variable cost $m total fixed cost $m total revenue $m --- --- --- ---…

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Question 7 · 1 mark · The price system and the microeconomy - costs of production (marginal and average variable cost)

A firm at its current level of production finds that its short-run marginal cost is less than its short-run average variable cost. Which conclusion about the firm can be drawn…

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Question 8 · 1 mark · The price system and the microeconomy - growth of firms and economies of scale

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

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Question 9 · 1 mark · Government microeconomic intervention - externalities (external costs)

What is an example of an external cost? A distribution costs B energy costs C labour costs D road congestion costs

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Question 10 · 1 mark · Government microeconomic intervention - social costs, social benefits and net social benefit

The diagram shows the demand for and supply of a good and the marginal social costs (MSC) for that good. [Diagram: axes of 'costs, revenue' (vertical) and 'output' (horizontal),…

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Question 11 · 1 mark · The price system and the microeconomy - the divorce of ownership from control

What would definitely result from the divorce of ownership and control? A decreased moral hazard B the principal agent problem C greater productive efficiency D increased profit…

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Question 12 · 1 mark · Government microeconomic intervention - public goods and market failure

One reason for market failure is the existence of public goods. Which policy option is appropriate for addressing such a market failure? A direct provision of the good by the…

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Question 13 · 1 mark · Government microeconomic intervention - methods of intervention

In 2020, the governor of California issued an order to ban the sale of new vehicles from 2035 that are powered by petrol or diesel fuel. Which type of government policy is this? A…

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Question 14 · 1 mark · The price system and the microeconomy - the labour market (monopsony and minimum wage)

The diagram illustrates a monopsony labour market in which the government has imposed a minimum wage. [Diagram: axes of 'wage rate' (vertical) and 'quantity of labour'…

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Question 15 · 1 mark · The price system and the microeconomy - the demand for labour

Economics textbooks state that labour is a derived demand for a firm in imperfect competition. How is the demand curve for labour derived? A by multiplying the average physical…

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Question 16 · 1 mark · The macroeconomy - the distribution of income and the Lorenz curve

The diagram shows the Lorenz curves for Norway (N) and India (I). [Diagram: axes of 'cumulative percentage of income' (vertical, 0 to 100) and 'cumulative percentage of…

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Question 17 · 1 mark · Government microeconomic intervention - government failure

A reason for government intervention in the workings of the economy is to attempt to correct a market failure. Sometimes, though, government failure may occur. What is not a…

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Question 18 · 1 mark · Government macroeconomic intervention - policies to promote sustainable growth

A government wishes to support growth in the economy's fishing industry. Which policy is likely to achieve sustainable growth in the fishing industry? A giving more modern fishing…

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Question 19 · 1 mark · The macroeconomy - unemployment (types of unemployment)

Four citizens have each been unemployed for the past six months. Which citizen would not be characterised as being structurally unemployed? A worked as a coal miner but coal-fired…

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Question 20 · 1 mark · The macroeconomy - aggregate expenditure and the deflationary gap

In the diagram, OP is the equilibrium level of income and OQ is the full employment level of income in a closed economy. [Diagram: axes of 'expenditure' (vertical) and 'income'…

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Question 21 · 1 mark · Government macroeconomic intervention - policies to reduce unemployment (frictional)

What is the most effective policy a government could introduce to reduce frictional unemployment? A cut welfare spending on benefits B improve information about job vacancies C…

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Question 22 · 1 mark · The macroeconomy - the multiplier and the marginal propensity to consume

In a closed economy with no government sector, when will an increase in investment spending generate the largest increase in equilibrium national income? A when households have a…

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

Which combination of policies is most likely to increase output? fiscal policy monetary policy --- --- --- A decrease budget deficit decrease interest rates B decrease budget…

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Question 24 · 1 mark · The macroeconomy - the effects of an external price shock

A country is a net importer of oil. World oil prices have risen over the year. Assuming that all other factors remain the same, how is this likely to affect inflation, trade…

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Question 25 · 1 mark · Government macroeconomic intervention - supply-side policy

What would reduce the effectiveness of a supply-side stimulus to the economy? A an imposition of maximum hours in a working week B an increase in public sector spending C the…

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Question 26 · 1 mark · International economic issues - multinational companies and foreign direct investment

A multinational company (MNC) shifts its manufacturing capacity to a developing country. What is likely to be the short-run effect of this in the developing country? employment…

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Question 27 · 1 mark · International economic issues - economic development and the Kuznets curve

To indicate the changing income distribution, the Kuznets curve plots gross domestic product per capita against an economic variable X. What is variable X? A the exchange rate B…

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Question 28 · 1 mark · The macroeconomy - the labour force and the measurement of unemployment

Economists define the unemployed as being those who are not in work but are actively seeking work. Other groups of people in the population of working age include those classed as…

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Question 29 · 1 mark · International economic issues - population, urbanisation and economic development

The table shows some United Nations population statistics for 2010 and estimates for 2050. type of region total population (m) 2010 total population (m) 2050 urban population (m)…

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Question 30 · 1 mark · The macroeconomy - the Lorenz curve and the Gini coefficient

The diagram shows a Lorenz curve with two areas, X and Y, identified. [Diagram: axes of 'cumulative % of income' (vertical, 0 to 100) and 'cumulative % of households' (horizontal,…

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