AS & A Level Economics (9708) — October–November 2023, Paper 11

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 basic economic problem - scarcity, choice and the allocation of resources

What will help solve the basic economic problem? A the control of the market system B the efficient allocation of scarce resources C the preservation of a healthy environment D…

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Question 2 · 1 mark · The basic economic problem - opportunity cost and the production possibility curve

Country Z operates with a production possibility curve (PPC). Currently, output is at combination 1. [Diagram: axes 'good Y' (vertical) and 'good X' (horizontal), origin O. A…

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Question 3 · 1 mark · The basic economic problem - types of goods (public, private, merit, demerit and free goods)

A country's health care is funded by taxation but can be used free of charge by patients. Which type of good is health care in this country? A demerit good B free good C private…

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Question 4 · 1 mark · The allocation of resources - economic systems and the transition to a market economy

What is least likely to increase as a result of a transition from a planned economy to a free market economy? A prices of goods and services B privately owned resources C…

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Question 5 · 1 mark · The price system and the microeconomy - consumer and producer surplus

Which statement correctly describes the area of producer surplus on a demand and supply diagram? A It is above the supply curve and below the equilibrium price line. B It is above…

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Question 6 · 1 mark · The price system and the microeconomy - price elasticity of demand

The diagram shows a demand curve for pineapples. [Diagram: axes 'price ($)' (vertical, marked 0, 0.5, 1, 1.5, 2) and 'quantity (000s)' (horizontal, marked 0, 3, 6, 9, 12). A…

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

In a free market, there is a surplus of a good. Which change would cause the market to come to an equilibrium? A a decrease in demand B a fall in price C a government minimum…

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Question 8 · 1 mark · The price system and the microeconomy - cross elasticity of demand

The cross-elasticity of demand between good P and good Q is −0.4. The cross-elasticity of demand between good P and good R is +0.6. Which combination of goods is most likely to be…

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Question 9 · 1 mark · The price system and the microeconomy - price elasticity of supply

The supply, S, of a product is determined by the equation S = 10 + 10P where P is the price of the product in $. What is the product's price elasticity of supply when its price…

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Question 10 · 1 mark · The price system and the microeconomy - the price mechanism and the allocation of resources

In the diagram, the supply curve shows the number of spaces in a car park and the demand curves show the demand for spaces on four different days, D1, D2, D3 and D4. [Diagram:…

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Question 11 · 1 mark · The price system and the microeconomy - demand, total revenue and elasticity

The table shows the demand schedule for textbooks. price $ quantity demanded --- --- 50 0 40 100 30 200 20 300 10 400 0 500 What can be concluded from this information? A Profit…

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

Which event is most likely to enable firms to respond to an increase in demand by increasing supply rather than by raising price? A Firms reduce their expenditure on the training…

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Question 13 · 1 mark · The price system and the microeconomy - the conditions of demand and related goods

In the diagram, S1 is the supply curve and D1 is the initial demand for facemask X. A rival firm produces facemask Y, which is a close substitute. [Diagram: axes 'price of…

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Question 14 · 1 mark · Government microeconomic intervention - market failure, public goods and excludability

A government introduces charges for vehicles using the roads in its capital city. Which characteristic must the roads have for this to be successful in reducing congestion? A The…

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Question 15 · 1 mark · Government macroeconomic intervention - taxation (average and marginal rates of tax)

The table shows the tax an individual would pay at different levels of income. annual income ($) tax paid ($) --- --- 20 000 1 000 30 000 3 000 40 000 6 000 50 000 8 000 60 000 12…

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Question 16 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

A government has increased output with no effect on the price level. [Diagram: axes 'price level' (vertical) and 'output' (horizontal), origin O. An aggregate supply curve AS is…

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Question 17 · 1 mark · The macroeconomy - national income statistics

What is not included in the measurement of national income? A benefits paid to the unemployed B dividends paid to shareholders C profits retained by companies D rent paid to…

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Question 18 · 1 mark · The macroeconomy - unemployment (definition)

Four students have to fill in the gaps in the sentence shown. 'A person is defined as unemployed if they are ......1...... to work at ......2...... wage rate, but cannot find a…

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Question 19 · 1 mark · The macroeconomy - the measurement of inflation (consumer prices index)

Which statement best describes the consumer prices index (CPI)? A It is a measure of changes in the spending patterns of the average household. B It is a measure of changes in the…

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Question 20 · 1 mark · The macroeconomy - comparative advantage and the terms of trade

The diagram shows the production possibility curves (PPCs) for country X and country Y, the only two countries in the world. Both countries produce just two goods, M and N.…

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Question 21 · 1 mark · The macroeconomy - aggregate demand

Why is increased government provision of education most likely to shift the aggregate demand curve to the right? A It will increase aggregate supply. B More schools will be built.…

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Question 22 · 1 mark · The macroeconomy - the balance of payments (current account)

Which item is not included in the current account of a country's balance of payments? A exports of services B interest on foreign loans C profits from foreign investments D the…

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Question 23 · 1 mark · The macroeconomy - money values and real values (nominal and real GDP)

Under which conditions will nominal GDP and real GDP increase at the same rate in an economy? rate of change of national output (% per annum) rate of change of general price level…

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Question 24 · 1 mark · The macroeconomy - the circular flow of income (injections and leakages)

General equilibrium in the macroeconomy is achieved when total injections are equal to total leakages. What is most likely to cause disequilibrium in the macroeconomy in the short…

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Question 25 · 1 mark · The macroeconomy - unemployment (frictional unemployment)

What would be the most likely reason for a decrease in frictional unemployment? A more capital-intensive manufacturing B more demand for public sector workers C more government…

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Question 26 · 1 mark · The macroeconomy - the balance of payments (current account components)

A Kenyan banker who lives and works in India sends 15% of their wage back to Kenya every month. What would be the change in the current account components for either country? A a…

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Question 27 · 1 mark · The macroeconomy - inflation and deflation

Over a period of a year, the annual rate of inflation becomes negative. Which statement must be correct? A The cost of living has fallen. B The purchasing power of money has…

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Question 28 · 1 mark · Government macroeconomic intervention - fiscal policy and AD/AS analysis

The government of a country plans to raise income tax rates. The initial equilibrium for the country is represented by point X on the diagram. [Diagram: axes 'price level'…

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Question 29 · 1 mark · Government macroeconomic intervention - monetary policy

Which combination would represent the most expansionary set of monetary policies? credit availability interest rates money supply --- --- --- --- A increased up reduced B…

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Question 30 · 1 mark · The macroeconomy - the costs and consequences of inflation (cost-push inflation)

An economy is experiencing accelerating cost-push inflation. Which group is likely to be least concerned by this? A borrowers B consumers C creditors D exporters

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