AS & A Level Economics (9708) — May–June 2024, 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 · Basic economic ideas and resource allocation - scarcity, choice and opportunity cost

A worker earns $40 per hour. Rather than work, she decides to visit a museum for three hours. The visit costs a total of $40. What is the opportunity cost of visiting the museum?…

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Question 2 · 1 mark · Basic economic ideas and resource allocation - factors of production

The nature of a typical car assembly plant has changed. The industry has fewer firms, operates on larger sites and has more automated machinery. How is this change most likely to…

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Question 3 · 1 mark · Basic economic ideas and resource allocation - factors of production

Which item would be least likely to be classed as land? A fertilisers B fisheries C forests D coal

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Question 4 · 1 mark · Basic economic ideas and resource allocation - scarcity, choice and opportunity cost

Why does the concept of scarcity apply to the use of fossil fuels? A Demand fluctuates according to price changes. B Supply is insufficient to meet demand. C Their use is…

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Question 5 · 1 mark · Basic economic ideas and resource allocation - the production possibility curve

An economist knows the current point at which an economy operates within its production possibility curve. What can the economist conclude about this economy? A its degree of…

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

An increase in which factor is likely to cause a shift to the left of the demand curve for cinema movies? A expenses for the heating system in the cinema B payments charged by…

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

Four firms supply the market. The market supply is 50 units at $20 and 100 units at $40. The table shows the market share of each firm at the two prices. Which firm does not have…

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

Which statement is correct? A Demand for an inferior good has a positive relationship to income and a negative relationship to price. B Demand for an inferior good has a negative…

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Question 9 · 1 mark · The price system and the microeconomy - consumer and producer surplus

In which row are both statements correct? consumer surplus producer surplus --- --- --- A the value that consumers gain from consuming a good over and above the value that would…

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

A firm calculates that the income elasticity of demand for its product is -3.0. What can be deduced from this information? A In a period of economic growth, its total revenue…

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

The diagram shows the demand and supply curves for the global air cargo market. The initial equilibrium is at point X. What would the new equilibrium be if there is a global…

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Question 12 · 1 mark · Basic economic ideas and resource allocation - the meaning of the term economy and types of goods

A government gives free food to poor households in a community. What is this food an example of? A a free good B a public good C a demerit good D a normal good

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Question 13 · 1 mark · Government microeconomic intervention - subsidies

A government wishes to raise the incomes of farmers without raising the price of food to consumers. Which policy should it use? A a maximum price below the market price for food B…

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Question 14 · 1 mark · Basic economic ideas and resource allocation - positive and normative statements

Governments in market economies give different reasons for intervening in the operation of an economy. Which reason given is a normative statement? A Average incomes have failed…

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

The table illustrates macroeconomic data for an economy. All figures are in $ billions. What is the equilibrium real output? consumption expenditure investment government…

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Question 16 · 1 mark · The macroeconomy - national income statistics

A country's net national income (NNI) is less than its gross national income (GNI). What does this mean? A incomes earned overseas were less than incomes sent overseas B inflation…

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Question 17 · 1 mark · The macroeconomy - unemployment

Asha is currently unemployed. She has been offered a job but has decided to decline the offer and search for a better paid job. Which type of unemployment is this? A cyclical B…

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Question 18 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

A major trading nation, country X, is in equilibrium at the full employment level of real output. There is then a recession in its main international markets. What are the most…

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Question 19 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

Why would a fall in a country's average price level cause its aggregate demand curve to slope downwards? A It leads to an increase in interest rates. B It reduces the real value…

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

To counter deflation a central bank uses expansionary monetary policy. What is likely to result? A a higher cost of borrowing B an increase in aggregate demand C an appreciation…

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Question 21 · 1 mark · Government macroeconomic intervention - fiscal policy

Which statement about government budget surpluses and deficits is the most accurate? A A surplus implies that the balance of payments is in surplus. B A surplus implies that the…

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Question 22 · 1 mark · Government macroeconomic intervention - fiscal policy

What is most likely to decrease if a government uses expansionary fiscal policy? A a balance of payments deficit B cyclical unemployment C the level of wages D the rate of…

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Question 23 · 1 mark · Government macroeconomic intervention - fiscal and monetary policy

Sweden had a change in its Consumer Prices Index (CPI) of -0.6%. Which combination of policies might its government use to restore price stability? A increase interest rates and…

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Question 24 · 1 mark · International economic issues - exchange rates

What is a disadvantage of operating a floating exchange rate system? A It makes it difficult to prioritise domestic economic policy aims. B It makes the prices of internationally…

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Question 25 · 1 mark · International economic issues - protectionism

What is not an example of protectionism? A export subsidies B import subsidies C quotas D tariffs

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Question 26 · 1 mark · International economic issues - specialisation and comparative advantage

Countries X and Y both produce goods M and N. They decide to specialise and trade freely in the goods. Under which conditions are the gains from specialisation and free trade…

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Question 27 · 1 mark · International economic issues - terms of trade

The terms of trade for a country increased from 100 to 120. Which statements are correct? 1 The terms of trade have deteriorated. 2 Fewer exports are needed to buy the same…

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Question 28 · 1 mark · International economic issues - exchange rate determination

The table shows the number of Turkish lira (TRY) which can be exchanged for one US dollar (USD) in 2016 and 2021. date exchange rate --- --- July 2016 1 USD = 2.83 TRY July 2021 1…

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Question 29 · 1 mark · International economic issues - the current account of the balance of payments

The table shows the current account of a balance of payments for January 2021. $m --- --- exports of goods 15 000 imports of goods 17 000 services credit 2 500 services debit 2…

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Question 30 · 1 mark · International economic issues - protectionism

Which policy would not be an argument for the use of import tariffs? A They are an effective way of raising revenue. B They improve the balance of payments on a current account. C…

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