AS & A Level Economics (9708) — May–June 2025, Paper 41

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Question 1 · 20 marks · The macroeconomy - unemployment

The article refers to structural unemployment. Explain what this means and whether it is the same as the natural rate of unemployment.

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Question 2 · 20 marks · The price system and the microeconomy - indifference curves and budget lines

With the help of a diagram, evaluate the use of indifference curve analysis to explain the relationship between a change in the price of a product and the change in an individual…

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Question 3 · 20 marks · The price system and the microeconomy - growth and survival of firms

'The growth of a firm using a takeover is desirable because it enables consumers to benefit from lower prices and the firm to gain additional profits.' Evaluate this statement.

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Question 4 · 20 marks · Government macroeconomic intervention - fiscal policy

A country is experiencing stagflation, when there is a high rate of inflation at the same time as a negative output gap. With the help of a diagram, evaluate the effectiveness of…

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Question 5 · 20 marks · International economic issues - economic integration (free trade areas and customs unions)

A free trade area gains all the benefits associated with being a member of a customs union while avoiding all the costs associated with being a member of a customs union. Evaluate…

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