AS & A Level Economics (9708) — October–November 2023, Paper 42

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Question 1 · 20 marks · The price system and the microeconomy - equity and efficiency in the allocation of resources

Explain what is meant by equity and how the ban on motorcycle taxis and tricycles affects equity for commuters in Lagos.

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Question 2 · 20 marks · The price system and the microeconomy - indifference curves, budget lines and the derivation of the demand curve

Evaluate the use of indifference curve analysis to derive the demand curve for a normal good and the demand curve for an inferior good. [20]

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Question 3 · 20 marks · The price system and the microeconomy - market structure, perfect competition and economic efficiency

The model of perfect competition is the ideal form of market structure because it is the most efficient. With the help of diagrams, evaluate this statement. [20]

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Question 4 · 20 marks · International economic issues - multinational corporations, foreign direct investment and economic development

The presence of multinational corporations (MNCs) in a low-income country always promotes economic growth in that country. Evaluate this statement. [20]

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Question 5 · 20 marks · International economic issues - measures of the standard of living (GNI and the multidimensional poverty index)

Consider the relative merits of gross national income (GNI) and the multidimensional poverty index (MPI) as measures of the standard of living. [20]

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