AS & A Level Economics (9708) — May–June 2025, Paper 32
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →The diagram shows budget lines for an individual consumer. [Diagram: vertical axis labelled 'good Y', horizontal axis labelled 'good X', origin O. Two parallel downward-sloping…
Answer this question and get it marked →When is allocative efficiency achieved? A when a perfectly competitive market is in equilibrium B when everybody who needs the product can obtain it C when firms produce at the…
Answer this question and get it marked →A consumer spends all of their income on only two goods, X and Y. The consumer is initially in equilibrium, maximising their total utility. The consumer's tastes change and they…
Answer this question and get it marked →When might a moral hazard occur? A When a consumer does not have full information about a product. B When a person undertakes an activity that causes harm to another person. C…
Answer this question and get it marked →The diagrams show four average cost curves. Which diagram illustrates diseconomies of scale? [Four diagrams, each with vertical axis '$' and horizontal axis 'output', origin O. A:…
Answer this question and get it marked →What would enable a firm to increase its market share in a monopolistically competitive market? A barriers to entry B collusion C lack of competition D successful advertising
Answer this question and get it marked →Two manufacturing firms in the same industry, producing similar products, are considering merging together. What would be the least convincing reason for merging? A It would…
Answer this question and get it marked →The marginal social benefit of consuming a drink is less than the marginal private benefit. What would be the best policy to improve resource allocation in this market? A give a…
Answer this question and get it marked →A country's government banned cigarette smoking in enclosed public spaces, such as offices, shops, bars and restaurants. What is a government failure arising from this ban? A…
Answer this question and get it marked →A worker has a low wage. They have little incentive to earn extra income because they will pay more income tax and receive fewer means-tested benefits. What describes this…
Answer this question and get it marked →What is not an outcome of the existence of private property rights? A They encourage private owners to conserve property when its value is expected to rise. B They give private…
Answer this question and get it marked →The diagram shows the labour market for a profit maximising industry with a monopsony employer. [Diagram: vertical axis 'wage rate', horizontal axis 'quantity of labour', origin…
Answer this question and get it marked →What is not a factor affecting the supply of labour? A emigration rates B labour participation rate C labour productivity D unemployment benefits
Answer this question and get it marked →The diagrams show the demand for and supply of labour. [Three diagrams, each with vertical axis 'wage rate' and horizontal axis 'quantity of labour', origin O. Left diagram: an…
Answer this question and get it marked →An initial injection into the circular flow of income causes a much larger increase in GDP. What does this define? A autonomous investment B demand-pull inflation C the…
Answer this question and get it marked →An increase in a country's inflation rate causes real incomes to decline, but consumers decide to maintain their living standards. What has increased? A autonomous consumer…
Answer this question and get it marked →Which combination of income tax and government benefit payment systems will produce automatic stabilisation? income tax benefit payments system --- --- --- A progressive means…
Answer this question and get it marked →The diagram shows the actual and forecast changes in GDP for a country between 2020 and 2040. [Diagram: vertical axis 'GDP $', horizontal axis 'year' marked 2020, 2025, 2030,…
Answer this question and get it marked →The diagram outlines the monetary transmission mechanism following quantitative easing. Key words have been omitted from the process. central bank ...1... government assets ↓…
Answer this question and get it marked →A government decreases interest rates to reduce unemployment but finds this has little effect due to hysteresis. What causes this hysteresis? A capital investment increases B…
Answer this question and get it marked →In a closed economy, the central bank raises interest rates to reduce an increasing rate of inflation. Which macroeconomic policy objective is this targeting? A a surplus on the…
Answer this question and get it marked →A government sets a target for the annual rate of inflation to be no more than 3%. Which circumstances would make it difficult to achieve the target? A if devaluation of the…
Answer this question and get it marked →The central bank of a country decreases interest rates. What are the likely consequences? internal value of the currency external value of the currency --- --- --- A falls falls B…
Answer this question and get it marked →What is the most likely consequence when there is an increase in the national debt? A the creation of additional money B a current account deficit on the balance of payments C a…
Answer this question and get it marked →Which policy will help to reduce income inequality? A to increase indirect taxes B to increase trade union power C to increase the rate of interest D to reduce welfare payments
Answer this question and get it marked →The value of the currency of an open economy with a fixed exchange rate is significantly below its purchasing power parity value. If the economy decides to adopt a floating…
Answer this question and get it marked →Which policy will help to correct a deficit on the current account of the balance of payments? A decreasing direct taxes B decreasing government regulations C increasing exchange…
Answer this question and get it marked →The table shows possible changes in population, the rate of inflation and the number of years of education. Which combination would lead to an increase in both real GDP per capita…
Answer this question and get it marked →The following are four conditions sometimes attached to IMF loans to low-income countries. Which condition would conflict with the 'infant industry' argument? A the need to allow…
Answer this question and get it marked →Countries X and Y form a customs union which leads to a removal of tariffs between the countries. The diagram shows the effect on the market for wheat in country X. [Diagram:…
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