AS & A Level Economics (9708) — May–June 2025, Paper 14
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →What is a common criticism of economics? A It fails to establish theories of economic behaviour. B It is unable to construct models of how an economy might work. C It lacks the…
Answer this question and get it marked →What is an essential requirement for a market economy to be able to allocate its resources? A freedom of entry and exit B private ownership of property C many buyers and sellers D…
Answer this question and get it marked →Under which conditions are free market forces most likely to allocate resources efficiently in an economy? demerit goods merit goods public goods --- --- --- --- A a few a few a…
Answer this question and get it marked →What does a production possibility curve show? A the actual demand in an economy given its existing resources B the maximum output an economy can achieve using existing resources…
Answer this question and get it marked →A city built a new stadium to host the World Athletics championships. The city authorities also ensured clean air by closing factories and making their workers unemployed during…
Answer this question and get it marked →Along which axis can the market demand curve be aggregated from individual demand curves? A both the horizontal and the vertical axis B the horizontal axis only C the horizontal…
Answer this question and get it marked →In the diagram, D1 is the initial demand curve for student places at universities. [Diagram: A demand diagram with 'fees' on the vertical axis and 'student places' on the…
Answer this question and get it marked →A survey into the market for good X found that it is an inferior good and a close substitute for good Y. Which values for the income elasticity of demand for good X and its cross…
Answer this question and get it marked →What is the likely nature of the price elasticity of supply of a crop such as rice? A highly elastic in both the short and the long run as rice is an essential product B highly…
Answer this question and get it marked →The price of laptop computers falls. The price of which product is likely to rise as a result? A desktop computers B carrying cases for laptop computers C monitors for desktop…
Answer this question and get it marked →Assuming normal demand and supply for a product, what will definitely increase consumer surplus? A a shift in the demand curve to the left B a shift in the demand curve to the…
Answer this question and get it marked →A government in a market economy decides to subsidise the provision of the internet in remote parts of a country. What is the most likely reason for doing this? A to decrease…
Answer this question and get it marked →Who is intended to benefit from an agricultural buffer stock scheme during periods of plentiful harvests? A consumers of food B growers of food C processors of food D taxpayers
Answer this question and get it marked →A government decides to increase indirect taxes, abolish the agricultural subsidy and lower the income level at which tax becomes payable. What would be the most likely…
Answer this question and get it marked →What can be calculated using the formula (nominal GDP x price index in base year) / (price index in current year)? A gross national income B real gross domestic product C net…
Answer this question and get it marked →What is always regarded as a cause, rather than a consequence, of a change in the circular flow of income? A a decrease in government tax revenue B an increase in consumption…
Answer this question and get it marked →The table shows some data for an economy. investment ($ million) exports ($ million) government expenditure ($ million) savings ($ million) imports ($ million) taxation ($…
Answer this question and get it marked →The diagram shows an economy's aggregate demand curve. [Diagram: An aggregate demand (AD) curve with 'price level' on the vertical axis and 'output' on the horizontal axis. The AD…
Answer this question and get it marked →Long-run aggregate supply (AS) in an economy can be represented diagrammatically in different ways. For which AS curve would a long-term fall in aggregate demand always be likely…
Answer this question and get it marked →If a country is suffering from deflation, what would be the best policy to reflate the economy? A increase corporation tax B increase income tax C reduce interest rates D reduce…
Answer this question and get it marked →What would be a positive effect on the growth of an economy in the short run, if the government reduced a direct tax on individual earnings? A Food prices would increase because…
Answer this question and get it marked →What is not a monetary policy measure? A credit regulations for banks B interest rate changes C increased government subsidies D money supply changes
Answer this question and get it marked →The government has a macroeconomic objective of low unemployment. It has recently decreased interest rates. What may limit the effectiveness of this tool in achieving the…
Answer this question and get it marked →The table shows the ability of two countries, P and Q, to produce two goods, Y and Z. production of good Y per person production of good Z per person --- --- --- country P 1000…
Answer this question and get it marked →A trading country can produce two goods, X and Y. It specialises completely in the production of good Y. What will be the opportunity cost to the country of consuming additional…
Answer this question and get it marked →What are the terms of trade? A the difference in value between a country's exports and imports B the rate at which one currency can be exchanged for another C the rate at which…
Answer this question and get it marked →An Australian family purchases a holiday to New Zealand and an Australian mining company sells coal to China. Four students, A, B, C and D, are asked where these transactions…
Answer this question and get it marked →A government believes its current account deficit will be beneficial in the long run. What is the most likely reason for this? A Immigration has increased. B It imports capital…
Answer this question and get it marked →A country has a freely floating exchange rate. In which circumstance is it most likely to appreciate? A A competitor trading country experiences a fall in the value of its…
Answer this question and get it marked →A country has a current account deficit. What would be classified as a protectionist measure to restore the current account to equilibrium? A allow the exchange rate to appreciate…
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