AS & A Level Economics (9708) — October–November 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 · The price system and the microeconomy - utility and marginal utility

The diagram shows the total utility of consumers Y and Z when each consumes bars of chocolate. [Diagram: vertical axis labelled 'total utility', horizontal axis labelled 'number…

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

When choosing to buy two products, the satisfaction gained by the consumption of different combinations of these two products can be represented by an indifference curve. Which…

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Question 3 · 1 mark · Government microeconomic intervention - externalities and market failure

Negative externalities, such as air pollution due to car emissions, can cause damage to people's health in cities. Which response is most likely to occur from this situation? A…

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Question 4 · 1 mark · The price system and the microeconomy - market structures

The merger of two large firms in the Singapore market supplying taxis and private hire vehicles resulted in a single firm with 80% of the market. The remaining 20% of the market…

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Question 5 · 1 mark · The price system and the microeconomy - monopolistic competition

The diagram shows the cost and revenue curves of a profit-maximising, monopolistically competitive firm in long-run equilibrium. [Diagram: vertical axis labelled 'costs, revenue',…

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Question 6 · 1 mark · The price system and the microeconomy - different objectives of firms

A firm changes its aim and chooses to produce where marginal revenue (MR) is zero instead of where MR is equal to marginal cost (MC). Which explanation for this is not correct? A…

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Question 7 · 1 mark · The price system and the microeconomy - price discrimination

A firm operating in the airline industry uses third degree price discrimination. Which condition is most likely to allow this to happen? A Consumers are able to buy cheaply and…

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Question 8 · 1 mark · Government microeconomic intervention - asymmetric information and moral hazard

What is not an example of a moral hazard? A People with a higher risk of unemployment are more likely to undertake training. B People with free dental care are less likely to take…

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Question 9 · 1 mark · Government microeconomic intervention - externalities and cost curves

In recent years, the fuel cost of operating a jet aircraft has declined. Over the same period, improved design has led to much quieter aircraft. How would this affect the marginal…

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Question 10 · 1 mark · The price system and the microeconomy - the labour market and monopsony

Firm K operates in a competitive market. Firm L is a monopsony employer. Both firms are operating at an equilibrium level of output. Trade unions are introduced with the result…

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

A backward-sloping supply curve of labour is one where, beyond a certain point, the supply of labour A decreases as the demand for labour rises. B increases as the demand for…

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Question 12 · 1 mark · Government microeconomic intervention - policies to redistribute income and wealth

What is the economic result of a universal basic income (UBI)? reduces the incentive to work improves equality --- --- --- A no no B no yes C yes no D yes yes

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Question 13 · 1 mark · Government microeconomic intervention - policies to redistribute income and wealth

Which combination of fiscal policy measures would be most effective in reducing income inequality? top rates of income tax indirect taxes value of state benefits --- --- --- --- A…

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Question 14 · 1 mark · Government microeconomic intervention - externalities and congestion charges

At present, motorists who drive their cars within area 1 on the map pay a daily congestion charge of $8. [Map: a rectangle containing two concentric shaded ovals. The inner,…

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Question 15 · 1 mark · The macroeconomy - the circular flow of income and national income

What is most likely to lead to an increase in the size of the national income? A a fall in interest rates on savings accounts B a fall in the prices of imported goods C a decrease…

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Question 16 · 1 mark · The price system and the microeconomy - occupational mobility of labour

Which government policy is most likely to improve occupational mobility? A decreased income tax rates B increased government spending on education and training C increased…

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Question 17 · 1 mark · The macroeconomy - the multiplier

The table shows the marginal propensity to consume (MPC), marginal propensity to save (MPS), marginal rate of taxation (MRT) and marginal propensity to import (MPM) for a…

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Question 18 · 1 mark · The macroeconomy - economic growth

What is likely to happen when the productive capacity of a free enterprise economy increases over a long period of time? A Future generations will be less well-off than present…

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Question 19 · 1 mark · The macroeconomy - the accelerator

The accelerator principle refers to a relationship between investment and A the level of GDP. B changes in GDP. C the level of interest rates. D changes in interest rates.

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Question 20 · 1 mark · Government macroeconomic intervention - fiscal policy

What is likely to be the effect of an increase in the budget deficit? A an increase in effective demand B an increase in unemployment C a reduction in inflation D a reduction in…

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Question 21 · 1 mark · The macroeconomy - inflation and unemployment

The table gives details of the inflation and unemployment rates for different countries in 2008 and 2011. country inflation rate (% per annum) 2008 inflation rate (% per annum)…

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Question 22 · 1 mark · The macroeconomy - economic growth and economic development

Which government policy would boost economic growth but not necessarily promote economic development? A creating a more equal distribution of income and wealth B diverting…

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Question 23 · 1 mark · Government macroeconomic intervention - supply-side policy and the Laffer curve

Which policy measure to encourage economic growth might be based on the concept of the Laffer curve? A cuts in direct taxes B exchange rate depreciation C investment subsidies D…

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Question 24 · 1 mark · The macroeconomy - exchange rates and the Marshall-Lerner condition

The exchange rate of an economy appreciates. Assuming that the Marshall–Lerner condition holds in this economy, what is the likely outcome for imported inflation and unemployment?…

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Question 25 · 1 mark · The macroeconomy - characteristics of countries at different levels of development

Which characteristics are most commonly found in low-income countries? saving ratio capital-output ratio --- --- --- A low low B high low C low high D high high

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Question 26 · 1 mark · The macroeconomy - economic growth and sustainability

What has not accompanied global economic growth over the last 25 years? A a depletion of non-renewable resources B decreased international trade C growing urbanisation D increased…

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Question 27 · 1 mark · Government microeconomic intervention - measures of income inequality

When assessing income distribution in an economy, which change in the Gini coefficient suggests that a country is distributing its income more equally? A It has moved closer to…

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Question 28 · 1 mark · The macroeconomy - globalisation

In 2021, a very large cargo ship carrying over 18 000 cargo containers blocked the Suez Canal for seven days. It delayed over 350 other cargo ships, causing shortages of products…

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Question 29 · 1 mark · The macroeconomy - economic growth and economic development

The table shows data for Namibia and Spain from 2014 to 2017. Namibia 2014 Namibia 2017 Spain 2014 Spain 2017 --- --- --- --- --- real GDP per capita ($) 6113 6013 29 399 32 283…

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Question 30 · 1 mark · The macroeconomy - indicators of living standards and the Human Development Index

The graphs show the Human Development Index (HDI) and its component parts for Zimbabwe. [Graphs: four line graphs, each plotted against 'year' from 0 to 7. (1) 'Human Development…

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