AS & A Level Economics (9708) — May–June 2025, 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 - types of goods

A tourist visits a government-owned tropical beach. She pays $10 to enter but finds it overcrowded. Which type of good is the beach? A a free good B an inferior good C a public…

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Question 2 · 1 mark · Basic economic ideas and resource allocation - production possibility curves

The diagram shows a country's production possibilities. Points K, L, M, N, R and S represent different combinations of capital goods and consumer goods. Point K cannot be achieved…

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Question 3 · 1 mark · Basic economic ideas and resource allocation - opportunity cost

A firm produces 100 units of good Y and 200 units of good X with a fixed amount of resources. This firm wants to increase production of good Y to 120 units and as a result it can…

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

What is the most likely benefit of specialisation to a firm? A increase in motivation of employees B increase in imports from other countries C increase in the number of employees…

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Question 5 · 1 mark · Basic economic ideas and resource allocation - economic systems

Which row correctly identifies goods that would be expected to be produced in a mixed economy? goods that are excludable and rival in consumption goods that are non-excludable and…

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Question 6 · 1 mark · The price system and the microeconomy - price elasticity of supply

A theatre has a fixed number of tickets to sell for each performance. What is the price elasticity of supply? A perfectly elastic B perfectly inelastic C unit elastic and negative…

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Question 7 · 1 mark · The price system and the microeconomy - consumer and producer surplus

The diagram shows the market for computers in a country. [Diagram: price on the vertical axis, quantity on the horizontal axis, origin O. A downward-sloping demand curve and an…

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

The diagram shows the market demand for and supply of foodstuffs for an economy. This economy has faced a decrease in the supply of foodstuffs and, at the same time, an increase…

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

What is true for income elasticity of demand but not for price elasticity of demand? A It helps firms differentiate between goods with elastic and inelastic demand. B It helps…

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Question 10 · 1 mark · The price system and the microeconomy - the interaction of demand and supply

The table shows the supply and demand for avocados in kilograms (kg). price per kg ($) quantity demanded per day (kg) quantity supplied per day (kg) --- --- --- 45 170 230 40 190…

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Question 11 · 1 mark · The price system and the microeconomy - price elasticity of supply

A construction firm estimates that the price elasticity of supply in building a nuclear power plant is +0.1. What might explain this? A The firm can easily find new land as…

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Question 12 · 1 mark · The price system and the microeconomy - the price system and the allocation of resources

Which statement about maximum and minimum prices is correct? A With an effective maximum price for a product, a shortage will develop. B With an effective maximum price for a…

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Question 13 · 1 mark · Government microeconomic intervention - public goods and merit goods

A flood-control dam is an example of a good provided directly by a government. Which statement relating to the direct provision of a flood-control dam is not correct? A It allows…

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Question 14 · 1 mark · Government microeconomic intervention - buffer stock schemes

A country depends heavily on the production of an agricultural product, good X. It decides to introduce a buffer stock scheme for good X. The government allocates a fixed amount…

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Question 15 · 1 mark · Government microeconomic intervention - the impact of taxes (progressive taxation)

The graph shows an individual's income before and after the deduction of income tax. [Graph: income after tax ($) on the vertical axis, income before tax ($) on the horizontal…

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Question 16 · 1 mark · The macroeconomy - national income statistics (GDP)

Which source of income is not included in measuring real GDP? A pension paid to retired people B profits made by firms C rent paid to landlords D wages paid to nurses

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Question 17 · 1 mark · The macroeconomy - unemployment

The table shows some labour market statistics. million --- --- number of people of working age 45 number of people unemployed 2 number of people in the labour force 40 number of…

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Question 18 · 1 mark · The macroeconomy - aggregate demand and aggregate supply analysis

The diagram shows aggregate demand (AD) and aggregate supply (AS) where the initial equilibrium is at point X. The central bank forecasts a rise in raw material costs. The…

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Question 19 · 1 mark · The macroeconomy - inflation and deflation

An economy is experiencing a period of deflation. What must be happening? A The average price level is falling. B The output of the economy is falling. C The rate of inflation is…

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Question 20 · 1 mark · The macroeconomy - economic growth

What is the most likely consequence of economic growth? A a fall in the price of raw materials B a rise in youth unemployment C a worsening current account balance D reduced…

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

A government wants to operate a tighter monetary policy. What would it increase? A budget surplus B interest rate C money supply D rates of taxation

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

Which action is classified as a fiscal policy measure? A fixing a currency to another country's currency B tightening credit regulations on banks C providing guidance to industry…

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Question 23 · 1 mark · Government macroeconomic intervention - fiscal policy (budget balance)

The table shows government spending and revenue over a three-year period. year government spending ($bn) government revenue ($bn) --- --- --- 1 90 100 2 110 110 3 130 115 What can…

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

Which statement about supply-side policies is correct? A They solve the problem of demand deficient unemployment. B They do not involve an opportunity cost. C They reduce…

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Question 25 · 1 mark · Government macroeconomic intervention - monetary policy

A government has a target to reduce the rate of inflation. Why might it not want to raise interest rates to achieve this target? A aggregate demand may fall B aggregate supply may…

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Question 26 · 1 mark · International economic issues - protectionism

Which argument in favour of protectionism is not generally regarded as economically valid? A Once the protected industry becomes established, it will produce efficiently. B It…

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

A country has a deficit on the current account of the balance of payments. What would be expected to increase the deficit? A an appreciation of the exchange rate B an increase in…

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Question 28 · 1 mark · International economic issues - protectionism

A government increases the import quota of cars. What is the likely effect of this? A jobs will be created in the domestic car industry B prices of cars will fall for domestic…

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

The table gives the terms of trade index for a country over three years. year 1 year 2 year 3 --- --- --- --- terms of trade 100 105 112 What is the most likely impact of this…

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Question 30 · 1 mark · International economic issues - absolute and comparative advantage

Country X and country Y use the same amount of resources to produce mobile phones and televisions. The table shows how much of each product can be produced if all resources are…

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