AS & A Level Economics (9708) — October–November 2024, Paper 43

5 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.

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Question 1 · 20 marks · Business economics - pricing policies (limit pricing and predatory pricing)

Distinguish between limit pricing and predatory pricing.

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Question 2 · 20 marks · Government microeconomic intervention - negative externalities, market failure and indirect taxation

Negative externalities of production cause market failure. With the help of a diagram, assess the extent to which the introduction of indirect taxation is likely to address this…

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Question 3 · 20 marks · The price system and the microeconomy - wage determination in perfectly competitive and monopsony labour markets

Wages in a perfectly competitive labour market will always be higher than wages in a monopsony labour market. With the help of a diagram, evaluate this statement. [20]

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Question 4 · 20 marks · Government macroeconomic intervention - money supply, monetary policy and the control of inflation

Central banks can control the money supply. An increase in the money supply will cause inflation, therefore central banks can control inflation. Evaluate this statement. [20]

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Question 5 · 20 marks · The global economy - globalisation, protectionism and tariffs

Some high-income countries have introduced a policy of high tariffs on some imports to reduce the negative effects of globalisation on their economies. With the help of a diagram,…

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