AS & A Level Economics (9708) — October–November 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 - production possibility curves

The diagram shows a country's production possibility curve. [Diagram: a production possibility curve. The vertical axis is 'food (units)' with 100 marked and the horizontal axis…

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Question 2 · 1 mark · Basic economic ideas and resource allocation - scarcity, choice and opportunity cost

Which type of good does not consume scarce resources? A economic good B free good C merit good D public good

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

The factors of production earn different rewards. What identifies the correct economic term for these rewards? A capital – surpluses B enterprise – dividends C labour – interest D…

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Question 4 · 1 mark · Basic economic ideas and resource allocation - specialisation and division of labour

What is most likely to be an advantage of the division of labour? A an increase in labour force creativity B an increase in labour productivity C an increase in workforce…

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Question 5 · 1 mark · Government microeconomic intervention - merit and demerit goods

A government wishes to encourage the consumption of a merit good and reduce the consumption of a demerit good. Which policy should it adopt towards each good? merit good demerit…

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

Shoe manufacturers often use leather to make their most expensive shoes. Due to a world shortage of leather, the price of leather has risen. What will be the effect of this price…

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Question 7 · 1 mark · The price system and the microeconomy - market equilibrium and shifts in demand and supply

The Chinese government relaxed controls on private house ownership. Private house ownership rose sharply, replacing demand for apartments rented from the state. What would have…

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

The supply, S, of a product is determined by the equation S = 10 + 10P, when P is the price of the product. What is the price elasticity of supply when the price changes from $1…

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Question 9 · 1 mark · The price system and the microeconomy - cross and income elasticity of demand

A good has the following elasticity values. cross elasticity of demand +1.4 --- --- income elasticity of demand −0.8 Which statement is correct? A The good is a complement and…

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

Different areas on the diagram represent different aspects of a market. [Diagram: a demand and supply graph with 'price' on the vertical axis and 'quantity' on the horizontal…

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

Which combination of the classification of a good and market change will cause the demand curve for the good to shift to the right? classification of good market change --- ---…

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Question 12 · 1 mark · Basic economic ideas and resource allocation - public goods and the free rider problem

Which policy is most likely to solve the free rider problem caused by public goods? A an advertising campaign B a direct provision by the government C a minimum price D a tax on a…

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Question 13 · 1 mark · Basic economic ideas and resource allocation - the difference between income and wealth

Very low interest rates in an economy encourage economic growth and cause a large increase in house prices. Which group of people is most likely to experience a fall in income and…

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Question 14 · 1 mark · The price system and the microeconomy - demand for factors of production

A large-scale farming enterprise uses inputs of labour and capital equipment that are substitutes. If the government introduces a policy to subsidise capital equipment, how would…

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Question 15 · 1 mark · The macroeconomy - inflation and deflation

A country experienced an annual deflation rate of 2% for four successive years. Which statement is correct for the four-year period? A The price level fell by 8%. B The price…

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Question 16 · 1 mark · The macroeconomy - the circular flow of income

In the circular flow of income model of an economy, Y, C, I, G, X, S, T and M represent total income, consumption, investment, government expenditure, exports, saving, taxation…

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Question 17 · 1 mark · The macroeconomy - unemployment

What leads to a rise in frictional unemployment? A an economy moving into a period of recession B replacement of workers with computers in the service sector C a change from an…

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

The information shows data from a country's national income accounts. $ million --- --- gross domestic product at market prices 200 000 gross value added at basic prices 180 000…

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

A government is considering building a large hospital. The impact on the country's price level will depend partly on the amount of expensive raw materials the country imports for…

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

If interest rates are reduced, what is most likely to decrease? A borrowing by firms B consumer spending C import prices D export prices

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

Supply-side policy often has fiscal consequences. Which statement is not correct? A Increased government spending supporting technical progress has beneficial long-term…

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

Changes in fiscal policy can affect the distribution of income and wealth. Which combination of fiscal policy would most likely be regressive? A a fall in the lowest level of…

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

What does it mean when a government has a budget surplus? A Government revenue exceeds expenditure. B Imports exceed exports. C The government has an expansionary fiscal policy. D…

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Question 24 · 1 mark · International economic issues - protectionism

A country subsidises domestic production of manufactured goods. What is the most likely outcome? A a rise in economic growth B a rise in imports of manufactured goods C a rise in…

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

What is not a valid explanation of why a government might allow a deficit on the balance of payments current account to continue? A The balance of payments account must always…

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Question 26 · 1 mark · International economic issues - international trade and specialisation

A country currently producing at point X on its production possibility curve decides to specialise in the manufacture of cars and import trucks. It finds it can import one truck…

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Question 27 · 1 mark · International economic issues - the balance of payments

What is most likely to cause a current account deficit? A a recession in the domestic economy B a relatively high rate of inflation C an undervalued exchange rate D high labour…

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Question 28 · 1 mark · International economic issues - protectionism

Two statements describing forms of protectionism a government can use are listed. 1 There is a total ban on imports. 2 All imported goods have to be of a specified standard. Which…

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Question 29 · 1 mark · International economic issues - the terms of trade

When is there an improvement in a country's terms of trade? A when the price of exports falls more than the price of imports B when there is no change in the price of exports but…

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

What is likely to happen if there is a rise in the international value of a country's currency? A a fall in the foreign currency price of its exports B a fall in the volume of its…

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