AS & A Level Economics (9708) — October–November 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

The diagram shows the marginal utility (MU) from the consumption of quantities of good X. [Diagram: axes of 'marginal utility' (vertical, scaled 0 to 10) and 'quantity of X'…

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Question 2 · 1 mark · The price system and the microeconomy - indifference curve analysis

An indifference curve is typically drawn with a convex shape. Which economic concept explains the reason for this convex shape? A allocative efficiency B diminishing marginal rate…

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Question 3 · 1 mark · The price system and the microeconomy - the principal–agent problem

What is most likely to increase the principal–agent problem? A ensuring the actions of agents are known by the managers B linking the rewards of managers with the profitability of…

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Question 4 · 1 mark · The price system and the microeconomy - costs of production (fixed, variable and average cost)

The table shows a firm's total fixed cost and total variable cost. output total fixed cost $ total variable cost $ --- --- --- 1 1000 1000 2 1000 2000 3 1000 3000 4 1000 4000 5…

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Question 5 · 1 mark · The price system and the microeconomy - improvements in production techniques (costs, supply and the production possibility curve)

The diagrams relate to industry X. P5 is the original production possibility curve. [Three diagrams. (1) 'average costs': axes price $ (vertical) and quantity (horizontal), with…

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Question 6 · 1 mark · The price system and the microeconomy - growth of firms and integration

The world's largest coffee restaurant chain purchased a large coffee bean farm in Costa Rica. The farm has research and development facilities to study specific diseases that…

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

Which condition is necessary for a firm to practise third degree price discrimination effectively? A All consumers and producers must be in the same geographical location. B…

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Question 8 · 1 mark · The price system and the microeconomy - private and external benefits (externalities)

A traffic study concluded that there would be significant benefits if 10% of car drivers switched to using motorcycles during peak traffic times. Which benefit of this change…

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Question 9 · 1 mark · The price system and the microeconomy - cost-benefit analysis

Which conditions are most likely to reduce the accuracy of cost-benefit analysis in decision making? proportion of external costs and benefits to total costs and benefits % of…

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Question 10 · 1 mark · The price system and the microeconomy - Pareto optimality and efficiency

What is consistent with a movement towards Pareto optimality? A when negative externality lowers the utility of an individual B when consumption of a good is non-rival C when…

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Question 11 · 1 mark · The price system and the microeconomy - economic rent and transfer earnings in the labour market

The diagram shows the short-run supply curve and long-run supply curve of labour. [Diagram: axes 'wage rate' (vertical) and 'quantity of labour' (horizontal), with origin O. An…

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Question 12 · 1 mark · The macroeconomy - policies to increase labour productivity

Which policies might a government introduce to increase the marginal productivity of labour? better education tax allowances for capital goods --- --- --- A no no B no yes C yes…

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Question 13 · 1 mark · The price system and the microeconomy - poverty and the distribution of income and wealth

What is most likely to increase relative poverty in a country? A increasing means-tested benefit levels B increasing the power of trade unions C making the tax system more…

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Question 14 · 1 mark · Government microeconomic intervention - policies to correct market failure

Which policy is not designed to correct a market failure? A government provision of healthcare B price controls on large firms C regulations to limit smoke pollution D introducing…

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Question 15 · 1 mark · Government microeconomic intervention - maximum price controls

To control the cost of living, governments have sometimes imposed a maximum price on certain goods that is below the free market price. What is often an undesirable side effect of…

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Question 16 · 1 mark · The macroeconomy - the determinants of investment

When is an increase in national income most likely to induce an increase in investment spending? A when firms have spare production capacity B when firms use labour-intensive…

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Question 17 · 1 mark · The macroeconomy - money and the functions of money

What is a function of money? A It can be divided into small units. B It can be easily carried. C It is a standard of deferred payment. D It is widely accepted.

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Question 18 · 1 mark · The macroeconomy - types and causes of unemployment (structural unemployment)

A pandemic encourages many workers in developed countries to work from home, leading to a closure of city centre businesses such as coffee shops and retailers. If this way of…

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Question 19 · 1 mark · The macroeconomy - population change and economic growth

In its 2020 population census, China reported that the total population was just below 1.4 billion. The birth rate had continued to decline, the number of those reaching…

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Question 20 · 1 mark · The macroeconomy - aggregate expenditure and the determination of national income

Other things remaining equal, what will reduce the level of national income in an economy? A a fall in planned savings B a fall in the marginal propensity to import C an increase…

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Question 21 · 1 mark · The macroeconomy - the accelerator principle

What, according to the accelerator principle, will cause the level of investment to fall? A a decrease in confidence B a decrease in the rate of growth of national income C an…

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Question 22 · 1 mark · The macroeconomy - the Phillips curve

What is measured on the vertical axis of the Phillips curve? A the rate of change of real wages B the rate of change of take-home pay C the rate of inflation D the rate of interest

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Question 23 · 1 mark · The macroeconomy - foreign direct investment and economic growth

South Africa has attempted to improve the level of economic growth by attracting foreign direct investment (FDI). [Two line charts for the years 2008 to about 2019. Left chart,…

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Question 24 · 1 mark · The macroeconomy - economic growth and economic development

Which change would be most likely to indicate that a country has experienced economic development? A an appreciation in the country's currency B an improvement in the average…

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Question 25 · 1 mark · The macroeconomy - macroeconomic policy objectives

The table gives some economic indicators for four countries. Which country is closest to achieving the principal aims of government economic policy? change in GDP (%) rate of…

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Question 26 · 1 mark · The macroeconomy - government macroeconomic policy aims

What is a government macroeconomic aim? A a fall in the general price level of goods and services B an increase in monopoly regulation C lower taxes on consumer goods D a minimum…

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Question 27 · 1 mark · The macroeconomy - characteristics of low-income economies

Which row correctly identifies the characteristics of a low-income economy? dependency on the primary sector Gini coefficient value per capita real income --- --- --- --- A high…

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Question 28 · 1 mark · The macroeconomy - the role of international financial institutions (IMF)

What is the role of the International Monetary Fund (IMF)? A to advise countries that are experiencing trade disagreements B to help charities providing emergency assistance to…

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Question 29 · 1 mark · International economics - tariffs, world price and the quantity of imports

The diagram shows the international trading position of a country that had tariffs on imports. The country removed the tariffs on imports. [Diagram: axes 'price $' (vertical) and…

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Question 30 · 1 mark · The macroeconomy - factors affecting foreign direct investment in developing economies

Under which circumstances will low wages and low-cost land in a low-income country not attract foreign investment in manufacturing? A if the country creates genuine independence…

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