AS & A Level Economics (9708) — October–November 2024, Paper 33

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 · The price system and the microeconomy - utility and consumer equilibrium

A rational consumer chooses what quantities of two products Y and Z to purchase with a given income. MUY and MUZ are the additions to total utility that would result if the…

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Question 2 · 1 mark · The price system and the microeconomy - indifference curves and budget lines

Which statement about indifference curves is not correct? A Indifference curves are usually convex to the origin of the diagram. B Indifference curves can intersect each other. C…

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Question 3 · 1 mark · The price system and the microeconomy - efficiency and inefficiency

A firm increases its production. When will this result in allocative efficiency? A when the cost of producing the last extra unit equals the value the consumers place on it B when…

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Question 4 · 1 mark · The price system and the microeconomy - firms: costs, revenue and profit maximisation

The table shows a firm's revenue and costs at different levels of output. output marginal revenue average revenue marginal cost average total cost --- --- --- --- --- 1 125 125 90…

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Question 5 · 1 mark · The price system and the microeconomy - monopolistic competition

Which diagram shows a monopolistically competitive firm in long-run equilibrium? Each of the four diagrams A, B, C and D has a vertical axis labelled 'revenue/cost', a horizontal…

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

In a perfectly contestable market, entries and exits are cost-free. In reality, why is this not the case with some firms in contestable markets? A Firms cannot recover all fixed…

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Question 7 · 1 mark · The price system and the microeconomy - different objectives of firms

Which points show where each maximisation objective occurs? [Diagram: vertical axis labelled 'cost or price $', horizontal axis labelled 'quantity', origin O. A marginal cost…

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Question 8 · 1 mark · The price system and the microeconomy - economies and diseconomies of scale

What is an external economy of scale? A cheaper costs from purchasing large quantities of inputs B decreased interest rates on borrowed funds C increased labour productivity D…

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

A group of producers enter into an agreement to restrict supply or fix the price of a good. What does this describe? A a cartel B a conglomerate merger C economies of scale D…

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

What is meant by a four-firm concentration ratio of 25%? A The largest four firms' market share totals 25%. B The largest four firms have a market share of 25% each. C There are…

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Question 11 · 1 mark · Government microeconomic intervention - regulation of monopoly and allocative efficiency

A government decides to use price controls to achieve allocative efficiency in a monopoly market. Which price would need to be set to achieve allocative efficiency? [Diagram:…

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Question 12 · 1 mark · Government microeconomic intervention - the labour market and trade unions

The diagram shows the supply of and the demand for workers in the car manufacturing industry. A trade union successfully negotiates a wage increase from W₁ to W₂. [Diagram:…

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Question 13 · 1 mark · Government microeconomic intervention - the demand for labour (marginal revenue product)

A firm buys new machinery which increases the marginal productivity of its workforce. What will be the resulting impact on the market for labour? A a shift to the left in the…

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Question 14 · 1 mark · Government microeconomic intervention - transfer earnings and economic rent

The diagram represents the market for labour. [Diagram: vertical axis labelled 'wage', horizontal axis labelled 'number of workers', origin O. A downward-sloping demand curve D…

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Question 15 · 1 mark · Government microeconomic intervention - poverty and the poverty trap

Which combination of policies is most likely to increase the number of low-paid workers caught in the poverty trap? individual's tax-free allowance for income tax proportion of…

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Question 16 · 1 mark · The macroeconomy - money and the functions of money

A website compares the prices of groceries. Which function of money is illustrated by this? A medium of exchange B standard of deferred payment C store of value D unit of account

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Question 17 · 1 mark · The macroeconomy - types and causes of unemployment

Two statements about the types of unemployment are shown. 1 You will get unemployment if you pay people not to work, and tax them when they do. 2 An individual is actively seeking…

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Question 18 · 1 mark · Government macroeconomic intervention - monetary policy

A government decides to cut the rate of interest in order to stimulate aggregate demand and increase employment. Why might this policy not work in a recession? A Business…

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Question 19 · 1 mark · The macroeconomy - the consumption function (autonomous consumption and MPC)

Households in an economy change their consumption behaviour causing the consumption curve to shift from C₁ to C₂. [Diagram: vertical axis labelled 'consumption spending',…

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

How would decreasing interest rates be most likely to reduce unemployment? A by decreasing the borrowing costs of business B by decreasing the government's budget deficit C by…

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Question 21 · 1 mark · The macroeconomy - the relationship between inflation and unemployment

The diagram shows a curve representing the relationship between a country's unemployment rate and its inflation rate. [Diagram: vertical axis labelled 'inflation rate', horizontal…

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Question 22 · 1 mark · The macroeconomy - economic growth (actual and potential growth)

What is the most likely result of a period of negative actual growth? A an increase in the surplus of the financial account of the balance of payments B an increase in the deficit…

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Question 23 · 1 mark · Government macroeconomic intervention - effectiveness of monetary policy

An economy experiences falling incomes and rising unemployment. The central bank decides to reduce the rate of interest to stimulate economic activity. When would such a policy be…

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Question 24 · 1 mark · Government macroeconomic intervention - policy time lags

Monetary policy does not usually work immediately. Which time lag is likely to be the least concern to a government whose priority is a rapid domestic impact? A the time it takes…

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Question 25 · 1 mark · The macroeconomy - population and the optimum population

The optimum level of population is deemed to be that level at which real output per head is maximised. The diagram shows the relationship between population size and output per…

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Question 26 · 1 mark · Government macroeconomic intervention - balance of payments policies (expenditure reducing)

A government wants to reduce the current account deficit on the balance of payments. What is an example of an expenditure-reducing policy? A a devaluation of the currency B a…

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Question 27 · 1 mark · The macroeconomy - real income, living standards and growth

During a year, a country's national income in money terms increased by 5%, prices increased by 4% and the total population increased by 2%. What was the approximate change in real…

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Question 28 · 1 mark · The macroeconomy - economic development and foreign direct investment

What is most likely to result from foreign direct investment in a developing economy? A an improvement in the developing economy's trade balance B an increase in the developing…

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Question 29 · 1 mark · The macroeconomy - inequality, the Lorenz curve and the Gini coefficient

The diagram shows an economy's Lorenz curve (VW). [Diagram: a square with vertical axis labelled 'cumulative % of income' (from 0 to 100) and horizontal axis labelled 'cumulative…

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Question 30 · 1 mark · The macroeconomy - characteristics of countries at different levels of development

The table gives the percentage of employment in the primary, secondary and tertiary sectors in four countries. Which country is most likely to be a high-income country? primary…

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