AS & A Level Economics (9708) — May–June 2024, Paper 13

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 - types of goods (public goods)

What is not an example of a public good? A education B flood control systems C national defence D street lighting

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Question 2 · 1 mark · Basic economic ideas and resource allocation - production possibility curves (opportunity cost)

The diagram shows a production possibility curve for an economy that produces two goods, X and Y. When will the opportunity cost of producing more of good X be the largest? A…

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Question 3 · 1 mark · Basic economic ideas and resource allocation - scarcity, choice and opportunity cost (free goods)

Which activity illustrates the consumption of a ‘free’ good? A a farmer using water taken from a river B a patient visiting a medical facility provided by a charity C a person…

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Question 4 · 1 mark · Basic economic ideas and resource allocation - the fundamental economic problem (scarcity)

What is essential to eliminate scarcity? A the existence of sufficient resources to meet all needs and wants B producers consistently produce in excess of demand C the government…

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Question 5 · 1 mark · Basic economic ideas and resource allocation - the factors of production (division of labour)

What will encourage a higher degree of division of labour? A firms wishing for a greater level of self-sufficiency B firms wishing to increase their flexibility in production C…

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Question 6 · 1 mark · The price system and the microeconomy - price elasticity of supply (time period)

Which business is likely to be the slowest to alter its output in response to a sustained increase in demand for its product? A a fast-food restaurant B a household cleaning…

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

A company uses large amounts of gas to produce steel. Supplies of gas are reduced at the same time as the market for steel is hit by a recession. What can be said about the likely…

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

A firm is charging a price of $12 for its product and using 80% of its production capacity of 10 000 units per month. Assuming the product has unitary price elastic demand, which…

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

The diagram shows the demand for and supply of hotel accommodation. The market equilibrium is at point E. The hotel receives a very large number of bad reviews about the quality…

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

What most accurately describes a market supply curve? A supply at different income levels, assuming product prices remain unchanged B supply at different levels of factor prices,…

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

In the diagram, D₁ shows an individual’s initial demand curve for public transport. What could cause the demand curve to shift to D₂? A The costs of running the individual’s car…

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

A government introduces an effective minimum price for a product but makes no other intervention in the market. This policy suggests that the government’s objective is A to…

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Question 13 · 1 mark · Government microeconomic intervention - indirect taxes (tax incidence)

The diagram shows the effect of an indirect tax imposed on cigarettes. The market is initially in equilibrium at point X. Which area represents the incidence of the tax on…

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Question 14 · 1 mark · The price system and the microeconomy - price elasticity of supply

The diagram shows the supply curve of a product. The government imposes a specific indirect tax of $5 on the product. How will the price elasticity of supply of the product…

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

The diagrams show a country’s aggregate demand (AD₁) and aggregate supply (AS₁) curves. Since the world economic downturn (2007–2008), some governments have reduced labour costs…

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Question 16 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

The diagram shows the effect on the average price level when aggregate demand (AD) increases from AD₁ to AD₂. Which statement relating to this change in aggregate demand is…

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Question 17 · 1 mark · The macroeconomy - the circular flow of income

The table lists the values of the components of an economy’s circular flow of income. component value $m --- --- government spending 6 exports 8 investment 9 imports 7 saving 10…

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Question 18 · 1 mark · The macroeconomy - economic growth

What is a cost of negative economic growth? A deteriorating balance of payments B higher inflation C higher unemployment D increased pollution

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Question 19 · 1 mark · The macroeconomy - national income statistics

A government statistical office measured changes in income from employment, pensions and benefits, then subtracted income tax and welfare contributions and adjusted for inflation.…

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

Which combination of fiscal and monetary policies is most likely to be effective in the short run to prevent deflation in a closed economy? fiscal policy monetary policy --- ---…

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

Which macroeconomic objective is most likely to be achieved by increasing income tax? A depreciation of the exchange rate B economic growth C low unemployment D price stability

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Question 22 · 1 mark · Government macroeconomic intervention - supply-side policy

What is not a supply-side policy? A increasing government expenditure on infrastructure B increasing research and development expenditure C increasing subsidies for education and…

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Question 23 · 1 mark · The macroeconomy - the nature of macroeconomics

When can a policy be classified as macroeconomic? A when it focuses on the level of individual welfare B when it involves economy-wide institutions and behaviour C when it is…

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Question 24 · 1 mark · International economic issues - the balance of payments (correcting a deficit)

The demand for a country’s exports is price elastic. If it is experiencing a deficit on the current account of its balance of payments, which combination of policies is most…

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Question 25 · 1 mark · International economic issues - protectionism

What is an unintended consequence of the US government restricting imports of cheap Chinese steel? A US importers of steel pay lower prices for steel. B US manufacturers become…

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Question 26 · 1 mark · International economic issues - the balance of payments (current account)

What is an export of services in Jamaica’s current account? A an inflow of funds to Jamaica to buy shares B earnings from US tourists visiting Jamaica C earnings of Haitian…

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Question 27 · 1 mark · International economic issues - protectionism (tariffs)

A country imports natural gas for which it has price-inelastic demand. What is the effect if that country imposes an import duty on the gas? A Consumers in the importing country…

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Question 28 · 1 mark · International economic issues - comparative advantage and specialisation

The table shows the output of goods X and Y in China and the United States (US) before specialisation. good X good Y --- --- --- China 20 000 70 000 US 20 000 50 000 total 40 000…

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Question 29 · 1 mark · International economic issues - multilateral and bilateral trade

Economists suggest that multilateral trade between many countries is preferable to bilateral trade between two countries. Why is this? A Bilateral trade means that trade diversion…

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Question 30 · 1 mark · International economic issues - terms of trade

A country experiences an improvement in its terms of trade. What is the most likely cause? A a decrease in its budget deficit B a relatively low rate of domestic inflation C a…

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