AS & A Level Economics (9708) — May–June 2025, Paper 11

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 basic economic problem - positive and normative statements

Which statement about a free vaccination programme is normative? A It will help raise life expectancy. B It is likely to improve the welfare of society. C It will result in lower…

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Question 2 · 1 mark · The basic economic problem - opportunity cost and the production possibility curve

The diagram shows the production possibility curves of two countries, X and Y. [Diagram: two production possibility curves on axes of 'capital goods' (vertical, marked 60, 50, 40)…

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Question 3 · 1 mark · The allocation of resources - market economy and mixed economy

Which goods are least likely to be allocated by market forces in a mixed economy? A hospitals B railways C street lighting D television programmes

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Question 4 · 1 mark · The basic economic problem - specialisation and division of labour

In 2020, there was a worldwide pandemic. High-income countries quickly developed a vaccine. Low-income countries built high-tech factories to manufacture large quantities of the…

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Question 5 · 1 mark · The allocation of resources - public goods and private goods

How can a public good become a private good? A Consumers are dissatisfied with the performance of state-run services. B New technological developments make the good excludable. C…

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Question 6 · 1 mark · The allocation of resources - the price mechanism and its functions

What is not a function of the price mechanism? A to act as a signal to firms when allocating resources B to maximise consumer surplus C to provide an incentive to firms to produce…

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Question 7 · 1 mark · The price system and the microeconomy - demand and related goods

Cars and petrol (gasoline) are in joint demand. What is the effect of an increase in the price of cars on the demand for petrol? [Four diagrams labelled A-D, each with axes…

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

What would best explain why the price elasticity of supply (PES) is likely to be lower for fresh vegetables grown within a country compared to the PES of goods manufactured in…

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

The diagram shows the demand for and supply of a product. [Diagram: axes 'price' (vertical) and 'quantity' (horizontal). A downward-sloping demand curve D. Two upward-sloping…

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

The diagram shows the demand for and supply of a product. [Diagram: axes 'price' (vertical) and 'quantity' (horizontal). An upward-sloping supply curve S and a downward-sloping…

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Question 11 · 1 mark · Government microeconomic intervention - the concept of wealth

What is an example of wealth? A interest received B profits C property D incomes

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Question 12 · 1 mark · Government microeconomic intervention - indirect taxes

Too much sugar causes an increase in a consumer's weight. A government has introduced a 'sugar tax' on the consumption of soft drinks that have a high sugar content. How might…

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Question 13 · 1 mark · Government microeconomic intervention - maximum and minimum prices

A ......1...... price set below the market equilibrium will cause a ......2...... of the product, and a ......3...... price set above the market equilibrium will cause a…

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Question 14 · 1 mark · Government microeconomic intervention - subsidies

The diagram shows the demand for and supply of eye tests provided by opticians. [Diagram: axes 'price' (vertical, marked P1, P2, P3 in ascending order) and 'quantity' (horizontal,…

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Question 15 · 1 mark · The macroeconomy - transfer payments

What is an example of a transfer payment? A a household moving savings from one bank account to another B a monthly repayment on a loan used to buy a new cooker C the amount paid…

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Question 16 · 1 mark · The macroeconomy - measurement of national income

Which statement correctly describes an increase in real GDP? A Nominal GDP rising faster than nominal income. B Nominal GDP rising faster than the rate of inflation. C The rate of…

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

An open economy with a government sector is in equilibrium. Households in this economy save $100 million and firms spend $150 million on investment. Which combination of the…

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Question 18 · 1 mark · The macroeconomy - types of unemployment

An economy's manufacturing share of real GDP fell from 30% in 1990 to 12% in 2023. Which type of unemployment would have resulted from this? A cyclical B frictional C structural D…

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Question 19 · 1 mark · The macroeconomy - aggregate supply

Which statement is not correct? A The long-run aggregate supply curve can be downward sloping. B The long-run aggregate supply curve can be horizontal. C The long-run aggregate…

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Question 20 · 1 mark · The macroeconomy - inflation and real values

The price of a pack of six eggs rises from $1.00 to $1.32 over a year. Consumer prices, as measured by the consumer price index, rise by 10% over the same period. What is the real…

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Question 21 · 1 mark · Government macroeconomic intervention - monetary policy

What is not an example of monetary policy? A a rise in import tariffs on manufactured goods B a rise in interest rates by the central bank C a rise in credit regulations D a rise…

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Question 22 · 1 mark · Government macroeconomic intervention - fiscal policy and indirect taxes

A government decides to raise most of its revenues from indirect taxes. What would increase the effectiveness of this policy? A an increasing trend towards bartering of goods B…

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

A government uses expansionary monetary policy over a three-year period. Which combination identifies the likely impact of such a policy? real GDP price level unemployment --- ---…

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Question 24 · 1 mark · Government macroeconomic intervention - supply-side policy

What is not an example of an expansionary supply-side policy? A a reduction in government spending on training B an increase in support for technological improvement C a reduction…

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Question 25 · 1 mark · Government macroeconomic intervention - taxation systems

The table shows the amount of tax paid on three different levels of income. Which combination shows a proportional income tax system? tax paid on annual income of $10 000 tax paid…

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Question 26 · 1 mark · International economic issues - terms of trade

Why does the value of a country's terms of trade have no monetary units? A It cannot be calculated accurately enough. B It includes more than one currency. C It is a ratio of two…

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Question 27 · 1 mark · International economic issues - protectionism

Which statement correctly describes a tariff? A It is a complete ban on imports. B It is a minimum price for domestic producers. C It is a payment to exporters. D It is a tax…

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Question 28 · 1 mark · International economic issues - the balance of payments

A country has a persistent deficit on the current account of its balance of payments. What is most likely to improve the situation in the long run? A a lowering of the level of…

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

Primary income and secondary income are components of the current account of the balance of payments. Which option correctly identifies an example of primary income and secondary…

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

The table shows the change in the value of UK sterling over a three-month period. June Sept --- --- --- £1 = $1.38 £1 = $1.32 What is likely to be the short-term impact of the…

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← May–June 2025 Paper 12

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