AS & A Level Economics (9708) — May–June 2025, Paper 34
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 a consumer's indifference curve (I₁) for two goods, X and Y. [Diagram: an indifference curve I₁ plotted with 'good X' on the vertical axis and 'good Y' on the…
Answer this question and get it marked →What is the most likely combination of circumstances leading to a good being under-consumed? the good is a demerit good there are external benefits in consumption --- --- --- A no…
Answer this question and get it marked →Why does the lack of property rights cause an inefficient allocation of resources? A Scarce resources are depleted because the owner has sold them too cheaply. B Scarce resources…
Answer this question and get it marked →A cost–benefit analysis is carried out on the construction of a hydroelectric power station. Under which circumstances would the scheme be most likely to be approved? A Private…
Answer this question and get it marked →Which type of market structure enables price leadership to take place? A monopolistic competition B oligopoly C perfect competition D pure monopoly
Answer this question and get it marked →The tables show the market share of the five largest firms in two separate industries. industry X firm market share % --- --- E 32 F 26 G 22 H 10 J 5 industry Z firm market share…
Answer this question and get it marked →The diagram shows the private and social marginal costs and benefits of a manufacturer. The current equilibrium is at point R. [Diagram: axes labelled 'cost, benefit' (vertical)…
Answer this question and get it marked →A government wishes to discourage tax avoidance. Which policy to achieve this would be an example of the behavioural approach of nudge theory? A compelling direct tax deduction by…
Answer this question and get it marked →What indicates that a more equal distribution of income has been achieved? A a faster rate of economic growth B a higher Human Development Index C a lower Gini coefficient D a…
Answer this question and get it marked →Which policy by a government would increase the negative externalities that result from cigarette smoking? A a ban on cigarette advertising B a ban on cigarette smoking in public…
Answer this question and get it marked →What determines the amount by which employment is reduced if a minimum wage is set 5% above the equilibrium market wage? A the average revenue product curve B the marginal revenue…
Answer this question and get it marked →What will increase the power of a trade union, allowing it to increase wages without reducing the employment of its members in a particular industry? A The economy is experiencing…
Answer this question and get it marked →In a closed economy with no government, the level of consumption spending is determined by the equation C = a + bY. What does b represent in this equation? A autonomous…
Answer this question and get it marked →The diagram shows an economy's aggregate monetary demand curve, AMD₁. Which level of income will produce the greatest difference between autonomous and induced expenditure?…
Answer this question and get it marked →According to the accelerator theory, what would cause investment in an economy to be lower than in the previous year? A a lower marginal propensity to consume than in the previous…
Answer this question and get it marked →What is the best description of sustainable economic development? A a long-term increase in the actual output of an economy B a long-term increase in living standards without…
Answer this question and get it marked →What is least likely to increase the natural rate of unemployment? A a decrease in information about vacancies B a decrease in trade union power C an increase in unemployment…
Answer this question and get it marked →In Keynesian economic theory, what is the purpose of interest? A to bring national income and expenditure into line B to control the level of economic growth C to create a balance…
Answer this question and get it marked →The quantity theory of money is sometimes represented by the equation MV = PT. Which statement is not correct? A M is a measure of the total value of notes and coins in…
Answer this question and get it marked →A country is experiencing high unemployment, high inflation and a trade deficit. Which policy is most likely to solve all of these problems? A devaluation of the currency B export…
Answer this question and get it marked →The United States government has been using a policy of quantitative easing to increase economic growth. What is the most likely effect of this policy on the internal and external…
Answer this question and get it marked →When will a balance of payments deficit create the most demand-pull inflationary pressure in an economy with a floating exchange rate? price elasticity of demand for exports…
Answer this question and get it marked →The table gives an economy's unemployment rate and inflation rate for a five-year period. year unemployment rate % inflation rate % --- --- --- 1 7.6 2.6 2 6.2 1.6 3 5.8 1.8 4 5.9…
Answer this question and get it marked →The diagram shows the international trading position of a country that had tariffs on imports. The country removed the tariffs on imports. [Diagram: axes labelled 'price $'…
Answer this question and get it marked →What would be the most effective long-term solution to a persistent deficit on the current account of the balance of payments? A to increase borrowing from foreign financial…
Answer this question and get it marked →A country has a deficit on the current account of the balance of payments. The government can try to reduce this deficit by using either an expenditure-switching policy or an…
Answer this question and get it marked →The table gives the values for an economy's short-run and long-run elasticities of demand for exports and imports. In which circumstance does depreciation lead to a J curve where…
Answer this question and get it marked →Which combination of characteristics is usually associated with a low-income country? A high death rate and low levels of productivity B high gross domestic product and low infant…
Answer this question and get it marked →How would a depreciation of the currency of a low-income economy be most likely to affect its macroeconomic policy objectives? increasing the rate of growth reducing the current…
Answer this question and get it marked →What is least likely to improve as a result of the decision by high-income countries to increase their aid to low-income countries? A exchange rate of low-income countries B…
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