AS & A Level Economics (9708) — October–November 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 production possibility curve for a country is shown. [Diagram: a production possibility curve. The vertical axis is labelled 'manufactured goods' and the horizontal axis is…

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Question 2 · 1 mark · Basic economic ideas and resource allocation - specialisation and division of labour

In a clothing business, after specialisation, real output per worker increased in the first six months but then output per worker began to fall. What might be the most likely…

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

A wine producer and bottler wanted to expand its production significantly. To finance the expansion it offered investors discounts on restaurant meals if they bought 2000 shares…

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Question 4 · 1 mark · Basic economic ideas and resource allocation - positive and normative statements

Which statement is positive? A All taxes should be proportional to income. B A progressive tax is a fair tax. C Greater equality of income is desirable. D Income inequality is…

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Question 5 · 1 mark · Basic economic ideas and resource allocation - production possibility curves and opportunity cost

The diagram shows the change in a country’s production possibility curve from PQ to PR. [Diagram: the vertical axis is labelled 'public goods' and the horizontal axis is labelled…

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

The graph shows the demand and supply curves for an industry. [Diagram: the vertical axis is labelled 'price' and the horizontal axis is labelled 'quantity', origin O. A…

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

A firm produces a good using a very labour-intensive process. There is an increase in the price of the good. Under which conditions will the supply of the firm’s good be most…

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

What is most likely to cause the demand curve of an inferior good to shift to the right? A a rise in consumers’ incomes B a rise in income tax C a rise in sales tax D a rise in…

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

The diagram shows four supply curves. Which curve has a price elasticity of supply of 1 for all levels of quantity supplied? [Diagram: the vertical axis is labelled 'price' and…

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

The diagram shows a shift of the supply curve in a market from S₁ to S₂. [Diagram: the vertical axis is labelled 'price $' and the horizontal axis is labelled 'quantity', origin…

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

Good X has a substitute, good Y, and a complement, good Z. The price of good Y decreases and the price of good Z increases. Why might the equilibrium price of good X remain…

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

In the diagram, S₁ and S₂ are the supply curves for an agricultural product in years 1 and 2 respectively. D is the demand curve in years 1 and 2. In year 1, the government…

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Question 13 · 1 mark · The macroeconomy - income and wealth inequality

Inequality in an economy can be categorised as either income inequality or wealth inequality. What is most likely to cause greater wealth inequality than income inequality? A an…

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Question 14 · 1 mark · Government microeconomic intervention - indirect taxes

A product with infinite elasticity of supply has sales of 1000 units a week at a price of $1 per unit. Price elasticity of demand is 1.5 over the relevant range. The government…

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Question 15 · 1 mark · The macroeconomy - inflation and index numbers

The table shows the values of Consumer Prices Index (CPI) and a worker’s salary in 2022 and 2023. CPI 2022 100 --- --- CPI 2023 110 worker’s salary 2022 $20 000 worker’s salary…

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Question 16 · 1 mark · The macroeconomy - unemployment

An economy experiences rising unemployment due to incomes falling as a result of a virus pandemic. How would this unemployment be classified? A cyclical B frictional C seasonal D…

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Question 17 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

What is likely to move an economy’s aggregate demand curve to the right? A a fall in income equality B a fall in incomes abroad C a fall in the exchange rate D a fall in the…

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Question 18 · 1 mark · The macroeconomy - national income statistics

Which items have to be added to and subtracted from Gross Domestic Product at market prices to calculate the value of Gross Domestic Product at basic prices? A capital consumption…

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Question 19 · 1 mark · The macroeconomy - price stability

In an economy with an interest rate of 4% per annum, the rate of inflation falls from 5% to 3% per annum. What will be a benefit of this fall? A Menu costs will fall to zero. B…

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

What is an example of a macroeconomic policy? A encourage the consumption of merit goods B reduce pollution in the steel industry C maintain general price stability D reduce…

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Question 21 · 1 mark · Government macroeconomic intervention - supply-side policy

Which supply-side policy is likely to lower real output before raising it? A increased spending on early years education B increased spending on infrastructure C reduced import…

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Question 22 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

An economy is in equilibrium at point E on the diagram. The government reduces its expenditure on defence. Which point on the diagram shows the new equilibrium? [Diagram: the…

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Question 23 · 1 mark · The macroeconomy - employment and unemployment

The number of people employed in a country and the level of unemployment both decrease. What could explain this? A net inward immigration B an increase in the level of…

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

Which circumstances would most help a firm to gain from a depreciation of the exchange rate? A It sells mainly abroad and relies on domestic suppliers for inputs. B It sells…

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Question 25 · 1 mark · International economic issues - the balance of payments

A country has a floating exchange rate. Its current account on the balance of payments moves from a surplus to a deficit. Which rate is likely to increase in the short run as a…

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Question 26 · 1 mark · International economic issues - policies to correct balance of payments disequilibrium

Which policy is most likely to reduce a balance of payments deficit without causing inflation? A decreased import quotas B depreciation of currency C higher interest rates D…

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

The table shows the average price of exports and imports. Which combination of changes in export prices and import prices could result in a country’s terms of trade increasing…

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Question 28 · 1 mark · International economic issues - protectionism

What is not an example of protectionism? A the European Union (EU) requiring goods imported into member states to meet safety standards B the Pakistan government increasing the…

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

Turkey imported $220 million worth of goods and services. Turkey exported $12 million worth of goods and services during the same period. Its net income was −$15 million. What is…

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Question 30 · 1 mark · International economic issues - exchange rates

The table shows the exchange rate for national currencies per US dollar. Which currency has the smallest percentage appreciation against the US dollar between 2019 and 2020? 2019…

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