AS & A Level Economics (9708) — October–November 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 - specialisation and division of labour

A factory introduces an automated production line to take advantage of division of labour. What is most likely to increase? A average cost of production B job satisfaction of…

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Question 2 · 1 mark · The price system and the microeconomy - market failure and merit goods

Consumers do not use enough of a product to maximise their private benefit because they have imperfect information about the product. How would an economist classify this product?…

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Question 3 · 1 mark · Basic economic ideas and resource allocation - opportunity cost and comparative advantage

The table shows different combinations of rings and bracelets that can be produced by Luke and Zoe in the same time period. Luke: rings Luke: bracelets Zoe: rings Zoe: bracelets…

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Question 4 · 1 mark · Basic economic ideas and resource allocation - scarcity, free goods and economic goods

What is an example of a free good? A a government sponsoring a free vaccination programme for its citizens B a hospital providing free treatment to the poor C a school providing…

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

The diagram shows the market for computers in Pakistan. On the diagram the vertical axis is labelled 'price' and the horizontal axis 'quantity', with origin O. A demand curve…

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

The supply curve for a firm is a horizontal straight line. What can be concluded from this statement? A Quantity supplied is infinite at the given price. B Quantity supplied is…

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Question 7 · 1 mark · The price system and the microeconomy - income elasticity of demand

When the incomes of consumers of good X fall by 5%, under which conditions will the demand curve shift furthest to the right? nature of good X income elasticity of demand for good…

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Question 8 · 1 mark · The price system and the microeconomy - demand and supply of related goods

Good P and good Q are substitutes. There is a decrease in supply of good P because of a shortage of materials. Which row describes what will happen to demand? good P good Q ---…

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Question 9 · 1 mark · The price system and the microeconomy - shifts in supply and market equilibrium

The pressure to reduce the use of fossil fuels has led to oil companies reducing the level of investment in the exploration of new reserves. What will be the long-run effect of…

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

The price elasticity of demand for a product is −0.6. The supplier wants to clear all surplus stock of a product and reduces the price of a good by 50%. What is the effect of this…

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

A firm is producing 100 units at a price of $10. The price elasticity of supply is 0.5 and the price is raised to $12. What is the new level of output? A 75 B 110 C 125 D 150

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

In a town, bus fares fall by 50% and this leads to an increase in bus use by 30%. The effect on car use is very low with only a 1% reduction. What is the value of the…

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Question 13 · 1 mark · Government microeconomic intervention - indirect taxes and market equilibrium

In the diagram, the demand and supply curves for wheat in Australia are shown. Initial equilibrium is at X. The government imposes a sales tax on wheat at the same time as…

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Question 14 · 1 mark · Government microeconomic intervention - maximum price controls

A free market is currently experiencing excess supply at a price of P₁. What will be the effect on the current market situation if a maximum price is set above P₁? A The excess…

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Question 15 · 1 mark · Government microeconomic intervention - transfer payments and poverty

What is a likely disadvantage of a government’s provision of transfer payments to the unemployed? A decrease in the standard of living B disincentive to accept paid work C…

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Question 16 · 1 mark · Government microeconomic intervention - redistribution of income and wealth

Which combination of policies would increase the inequality of the distribution of income and wealth? progressive taxes minimum wage transfer payments --- --- --- --- A decrease…

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Question 17 · 1 mark · The macroeconomy - the circular flow of income

Which changes will increase the circular flow of income? higher imports higher investment higher taxation --- --- --- --- A yes no no B yes yes no C no yes yes D no yes no

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Question 18 · 1 mark · The macroeconomy - injections, withdrawals and national income

An economy in equilibrium has a trade deficit of $20bn and a budget surplus of $20bn. Investment spending is $50bn. What is the total saving? A $5bn B $10bn C $15bn D $20bn

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

A finance company incurs heavy losses and makes an accountant redundant. The accountant seeks a new job through an employment agency which specialises in jobs in accounting. What…

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Question 20 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to A a decline in the country’s…

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Question 21 · 1 mark · The macroeconomy - the balance of payments (current account)

Which components are included as primary income in the current account of the balance of payments? trade in goods current transfers employment income from abroad --- --- --- --- A…

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Question 22 · 1 mark · The macroeconomy - measurement of national income

What is not included in the measurement of national income? A dividends paid to shareholders B overtime payments C rents from government-owned houses D welfare benefit payments

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Question 23 · 1 mark · The macroeconomy - inflation

The graph shows the rate of inflation for seven countries for 2015 and 2016. The bar chart shows, for each country, a light-grey bar for 2015 and a dark-grey bar for 2016 (see…

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Question 24 · 1 mark · International economic issues - comparative advantage and free trade

Country R and country S are going to trade 1 unit of product X for ½ unit of product Y. With a given amount of resources: - country R can produce either 30 units of product X or…

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Question 25 · 1 mark · The macroeconomy - causes of balance of payments disequilibrium

What is the most likely cause of a current account deficit on the balance of payments? A an undervalued exchange rate B a relatively low rate of inflation C a shrinking domestic…

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Question 26 · 1 mark · The macroeconomy - monetary policy and AD/AS analysis

The diagram shows the long-run aggregate supply (LRAS) and aggregate demand (AD) curves for an economy. On the diagram the vertical axis is the price level and the horizontal axis…

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Question 27 · 1 mark · The macroeconomy - supply-side and fiscal policy

The government undertakes a policy of financing training and retraining for unemployed workers. Which terms are most likely be used to classify this policy? demand-side…

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Question 28 · 1 mark · The macroeconomy - supply-side policy

Which combination of initial equilibrium and supply-side policy is likely to be least effective when attempting to increase the real output of an economy? initial equilibrium real…

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Question 29 · 1 mark · The macroeconomy - fiscal policy and government borrowing

A government aims to reduce unemployment through expansionary fiscal policy and borrows more from the commercial banks, increasing its borrowing requirement. What will be the…

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Question 30 · 1 mark · The macroeconomy - monetary policy instruments

A government wants to use an expansionary monetary policy. What should the government increase? A credit regulations B the exchange rate C the interest rate D the money supply

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