AS & A Level Economics (9708) — May–June 2025, Paper 31
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 equi-marginal principle? A As consumption of a product increases, the satisfaction from consumption of the product decreases by an equal amount. B Consumers maximise…
Answer this question and get it marked →The diagram shows the cost and revenue curves for a natural monopoly. [Diagram: axes are 'price' (vertical) and 'quantity' (horizontal). A downward-sloping average revenue curve…
Answer this question and get it marked →What would not affect the budget line of an individual consumer? A the individual's preference for various goods B the level of income tax C the money prices of goods D the…
Answer this question and get it marked →The diagram shows the marginal private costs (MPC) and marginal private benefits (MPB) of a product. Consumers initially estimate that marginal private costs are at MPC1 and…
Answer this question and get it marked →What is an internal economy of scale? A efficient local transport networks B improved access to spare parts as a result of industry growth C lower risks from supplying a wider…
Answer this question and get it marked →The diagram shows the costs and revenue for a monopoly. Which level of output would produce only a normal profit? [Diagram: axes are '$' (vertical) and 'quantity' (horizontal). An…
Answer this question and get it marked →Which combination of statements about small firms and large firms is most likely to be correct? small firms large firms --- --- --- A are more common in manufacturing than in…
Answer this question and get it marked →Good X is a popular product that creates a negative externality when it is consumed. The government wants to reduce the consumption of good X significantly. Under which…
Answer this question and get it marked →A government introduces tradeable pollution permits to reduce pollution. What is an advantage of this scheme? A It allows consumers to determine the optimum pollution level. B It…
Answer this question and get it marked →To reduce traffic congestion, a government built a new highway. A majority of the citizens were opposed to this. Some citizens responded by switching from public transport to…
Answer this question and get it marked →What could result in an individual being caught in the poverty trap if their income increases? A national minimum wage is changed B benefits payments are means-tested C subsidised…
Answer this question and get it marked →The diagram shows the impact on the labour market of the introduction of a national minimum wage (MW). [Diagram: axes are 'wage rate' (vertical) and 'labour' (horizontal). An…
Answer this question and get it marked →What is an example of 'nudge' theory as applied to the prevention of tax evasion? A employing an extensive administration to ensure detection of evasion B imposing heavy penalties…
Answer this question and get it marked →The diagrams show the demand for and supply of labour. [Three diagrams, each with axes 'wage rate' (vertical) and 'quantity of labour' (horizontal). Diagram 1 (left): an…
Answer this question and get it marked →In an economy with no government sector or foreign trade, the marginal propensity to consume is 0.6. If the equilibrium level of national income is $10 000 million and the full…
Answer this question and get it marked →What is a definition of hysteresis unemployment? A people who become temporarily unemployed because it takes a short period of time to find a job after they leave school B people…
Answer this question and get it marked →An economy has a positive output gap. What is happening to economic growth and the general price level? economic growth general price level --- --- --- A above trend growth rate…
Answer this question and get it marked →What is a factor affecting the occupational mobility of labour? A education and training B immigration controls C price of housing D transport infrastructure
Answer this question and get it marked →A country's government decides to set artificially low interest rates. What describes a negative consequence to this country of this policy? A a higher rate of consumer price…
Answer this question and get it marked →According to the quantity theory of money, which combination would result in the general level of prices remaining unchanged? money supply total number of transactions velocity of…
Answer this question and get it marked →A government increases its inflation rate target from 3% to 5%. What is a likely reason for this? A to increase economic sustainability B to increase saving C to reduce a balance…
Answer this question and get it marked →What would be a macroeconomic policy objective for a government in a developed economy? A to improve sustainability B to provide public goods C to reduce the power of trade unions…
Answer this question and get it marked →An economy is at its natural rate of unemployment. Under which circumstances will an increase in government spending aimed at reducing unemployment be most likely to conflict with…
Answer this question and get it marked →An economy imports a large proportion of its raw materials. Its exchange rate depreciates. What is the impact on the external and internal value of money? external value of money…
Answer this question and get it marked →A country's government imposes a tariff on steel imports. What is the likely impact of this tariff on this country's economy? A It will make this country's steel exports more…
Answer this question and get it marked →Which measurement is not included in the calculation of the Human Development Index? A average years of schooling B Gross National Income per capita C infant mortality rate D life…
Answer this question and get it marked →The diagram shows the impact of a revaluation of a country's exchange rate on the current account of the balance of payments. [Diagram: axes are 'current account of the balance of…
Answer this question and get it marked →What is not a function of the International Monetary Fund (IMF)? A to encourage exchange rate stability B to provide financial assistance for a country with failed economic…
Answer this question and get it marked →The diagram shows the effect of trade creation if a tariff is removed. [Diagram: axes are 'price' (vertical) and 'quantity' (horizontal). An upward-sloping domestic supply curve…
Answer this question and get it marked →What is most likely to prevent a developing country from achieving economic development? A increased allocation of resources to production of goods that have a high income…
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