AS & A Level Economics (9708) — May–June 2024, Paper 12

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 - production possibility curves

The diagram shows a production possibility curve (PPC). It indicates the combinations of consumer goods and capital goods produced by an economy using all its available resources.…

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Question 2 · 1 mark · Basic economic ideas and resource allocation - resource allocation in different economic systems

What is produced in a mixed economy but not in a free market economy? A demerit goods B free goods C private goods D public goods

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Question 3 · 1 mark · Basic economic ideas and resource allocation - positive and normative statements

Earth observation satellites designed to acquire information are close to the theoretical case of a public good. In 2011, the World Meteorological Organisation estimated that…

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

What is the opportunity cost of a virus to the healthcare service in a country? A increased number of hospital patients B increased use of personal protective equipment C…

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Question 5 · 1 mark · Basic economic ideas and resource allocation - factors of production and their rewards

The share of total incomes from profit in a country shows more variation over time than incomes from interest, rent and wages. What is the most likely reason for this? A Interest…

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

Changes in the market for gasoline (petrol) in Zimbabwe resulted in fuel shortages and long queues. Which combination of changes would have been certain to cause this situation?…

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Question 7 · 1 mark · The price system and the microeconomy - price elasticity of supply and producer surplus

The diagram shows the movement of the supply curve for a product from S₁ to S₂. [Diagram: axes with 'price' on the vertical axis and 'quantity' on the horizontal axis, origin O.…

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

The tables show the different quantities of a good demanded at different prices and levels of income. price $ quantity demanded --- --- 5 9 4 10 3 20 2 40 1 120 income $ quantity…

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Question 9 · 1 mark · The price system and the microeconomy - demand

In Asia, instant noodles is an inferior good because dried fruit is a better quality substitute. The diagram shows the demand for instant noodles. [Diagram: 'price of instant…

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Question 10 · 1 mark · The price system and the microeconomy - consumer surplus

The diagram shows the impact of an increase in the price of a product from P₁ to P₂. [Diagram: 'price' on the vertical axis and 'quantity demanded' on the horizontal axis, origin…

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Question 11 · 1 mark · The price system and the microeconomy - demand (joint demand)

Which reason for the increase in demand for a smartphone is an example of joint demand? A a fall in its price B a fall in the price of connecting to a network C a fall in the…

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Question 12 · 1 mark · Government microeconomic intervention - maximum and minimum prices

A market is in equilibrium. The government intervenes by creating a price floor below which the market price cannot fall. Which term describes this form of government…

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Question 13 · 1 mark · Government microeconomic intervention - public goods

What is an example of a public good? A a new road linking a major city with a port B free lunches provided to students at a school C Wi-Fi (internet access) provided for all the…

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Question 14 · 1 mark · Government microeconomic intervention - minimum prices and buffer stocks

The diagram shows an initial market equilibrium for an agricultural product of $6 and 800 units. [Diagram: 'price ($)' on the vertical axis (values 0, 6 and 10 marked) and…

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Question 15 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

Which government policy will increase aggregate demand? A raising indirect taxation B reducing the budget surplus C removing domestic subsidies D removing import quotas

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Question 16 · 1 mark · The macroeconomy - inflation and price indices

The table gives the value of the price index of an economy in two years. year price index --- --- 1 60 2 120 What can be concluded about the period? A Nominal income doubled. B…

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Question 17 · 1 mark · The macroeconomy - inflation

What causes a rise in cost-push inflation? A a fall in the rate of income tax B a rise in the rate of income tax C a depreciation of the exchange rate D an appreciation of the…

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Question 18 · 1 mark · The macroeconomy - economic growth

Which change affecting an economy's labour force will cause an increase in economic growth in the short run? A an increase in students entering university B an increase in the…

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Question 19 · 1 mark · The macroeconomy - national income statistics (GDP and GNI)

Which factor explains the difference between GDP and GNI? A foreign investment in the domestic automobile industry B revenues received from exporting capital goods C revenues…

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Question 20 · 1 mark · The macroeconomy - macroeconomic aims of government

What is true about a government's macroeconomic objectives? A Economic growth ensures a more even distribution of income. B Increasing output ensures that more workers are…

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Question 21 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

The original equilibrium in the economy is represented by point X, the intersection of AD₁ and AS₁, on the AD/AS diagram shown. The government decreases the money supply. What is…

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

How does a government use its central bank to promote an expansionary monetary policy? A increasing interest rates for commercial banks B increasing the interest rate on the…

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

Which combination of problems would be most likely to cause a country's government to reduce taxation and lower interest rates? A demand-pull inflation and a balance of payments…

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Question 24 · 1 mark · International economic issues - policies to correct balance of payments disequilibrium

What would be the best policy for a country to reduce a balance of payments deficit? A an increase in interest rates B an increase in the exchange rate C a reduction in direct…

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Question 25 · 1 mark · International economic issues - protectionism

A government wants to protect its textile industry from imports. Which policy is likely to have the least impact on the import of textiles? A a ban on the import of textiles B a…

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Question 26 · 1 mark · International economic issues - the balance of payments

A major European economy announced that the primary income account deficit of its balance of payments changed from $20 billion to $50 billion. What would have contributed to this…

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Question 27 · 1 mark · International economic issues - absolute and comparative advantage

The diagram shows the amounts of cotton and butter that can be produced in countries X and Y with a given quantity of resources. [Diagram: 'units of cotton' on the vertical axis…

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Question 28 · 1 mark · International economic issues - terms of trade

What is indicated by an economy's terms of trade? A the degree of its dependence on imports B the international competitiveness of its exports C the purchasing power of its…

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Question 29 · 1 mark · International economic issues - exchange rates and the foreign exchange market

What will cause an increase in the demand for the US dollar($)? A dividends paid from US firms to foreign shareholders B foreign firms buying US firms C foreigners who live in the…

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Question 30 · 1 mark · International economic issues - the balance of payments

What is not included in the current account of the balance of payments? A international aid B trade in goods C trade in services D foreign direct investment

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