AS & A Level Economics (9708) — May–June 2025, Paper 12
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →What is the best definition of a positive economic statement? A A statement that is based on fact and can be tested. B A statement that attempts to influence economic decisions. C…
Answer this question and get it marked →The diagram is from a chapter on 'The Fundamental Economic Problem' in an Economics textbook. It should contain the terms opportunity cost, scarcity and choice in the order that…
Answer this question and get it marked →What is a statement of the non-rivalrous nature of public goods? A It is not possible to stop a non-payer from using the product. B One person consuming the product does not…
Answer this question and get it marked →A country increases its spending on education and training. It pays for this by reducing unemployment benefit payments and increasing taxes on imports of machinery. What is the…
Answer this question and get it marked →The diagram shows an outward shift of the production possibility curve from PPC1 to PPC2. The vertical axis is consumer goods and the horizontal axis is capital goods. What could…
Answer this question and get it marked →D1 and S1 are the initial demand and supply curves in the market for new cars with an equilibrium at X. The diagram shows a new demand curve D2 (shifted right) and a new supply…
Answer this question and get it marked →When can a product be said to have a negative income elasticity of demand? A When it is a luxury good. B When it is a necessity good. C When it is a normal good. D When it is an…
Answer this question and get it marked →The diagram shows the short-run supply curve (SSR) and long-run supply curve (SLR) for a bakery. The price of a loaf of bread increases from $2.00 to $2.20. Along SSR quantity…
Answer this question and get it marked →An increase in which variable will always lead to an increase in the consumer surplus? A cost of production B maximum price C minimum price D subsidy
Answer this question and get it marked →Farmers want to extract wild honey from beehives. They find the beehives by following birds known as honeyguide birds who want the beeswax that is also found in the beehives. What…
Answer this question and get it marked →An indirect tax is imposed on good X. Which situation is most likely to result in producers bearing a higher burden of the tax? A price elasticity of demand is elastic B price…
Answer this question and get it marked →What would not be included in the calculation of an individual's wealth? A the house owned by the individual B the savings in the individual's bank account C the stocks and shares…
Answer this question and get it marked →Why might governments provide free education for children aged 4 to 16 years old? A Consumers are not fully aware of the benefits of education. B Education in a free market system…
Answer this question and get it marked →The diagram shows the demand and supply for rice. The market for rice is initially in equilibrium at a price of P1 (quantity Q1). The government introduces a maximum price of Pmax…
Answer this question and get it marked →In the diagram, D is the demand curve of an agricultural commodity and S is the initial supply curve. The initial equilibrium is at a price of $4 and a quantity of 2 ('000…
Answer this question and get it marked →Price stability can be said to occur if the measured value of the consumer prices index (CPI) is unchanged during the year. Which statement is correct? A For price stability to…
Answer this question and get it marked →Based on the circular flow of income, which condition is necessary for an open economy to be in equilibrium? A Government investment is equal to private investment. B Planned…
Answer this question and get it marked →The aggregate demand curve is typically downward sloping. What is one possible explanation for this? A A fall in the price level will lead to a rise in demand for imports. B As…
Answer this question and get it marked →What is most likely to cause an unemployed worker to be classified as frictionally unemployed? A lack of relevant skills for vacant jobs B lack of up-to-date job vacancy…
Answer this question and get it marked →The table shows figures estimated at the end of a train drivers' strike. item $ (000s) --- --- loss of ticket revenue for train companies 600 value placed on extra leisure time by…
Answer this question and get it marked →What is likely to be an expansionary monetary policy? A a decrease in the availability of credit B a decrease in the exchange rate C an increase in government spending D an…
Answer this question and get it marked →A government increases direct taxation to reduce its budget deficit. How is this likely to affect the government's ability to achieve its macroeconomic objectives? economic growth…
Answer this question and get it marked →An income tax has a tax-free allowance of $10 000 and a single rate of 25%. What type of tax is this? A indirect B progressive C proportional D regressive
Answer this question and get it marked →Which supply-side policy will encourage new entrepreneurs? A an increase in government subsidy to small firms B an increase in the national minimum wage C an increase in the power…
Answer this question and get it marked →The diagram shows aggregate demand (AD) and aggregate supply (AS) curves. The initial equilibrium is at X. A government decides to invest in an increase in infrastructure,…
Answer this question and get it marked →Which statement is not a valid reason why a country may impose protectionist measures? A to allow a newly developed domestic industry to grow to a viable size B to enable a…
Answer this question and get it marked →What is most likely to lead to a persistent surplus in a country's current account of its balance of payments? A a low domestic savings rate B an undervalued exchange rate C…
Answer this question and get it marked →Which formula is used to calculate the terms of trade? A the average price of exports divided by the average price of imports B the average price of imports divided by the average…
Answer this question and get it marked →A country is experiencing a deficit on the current account of its balance of payments. Which policy decision could reduce the deficit? A decrease in income tax rates B increase in…
Answer this question and get it marked →The Euro (EUR) is the main currency of the European Union. The diagram shows the exchange rate between the Euro and the US dollar. The supply of Euros increases from S1 to S2, so…
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