9708_s05_qp_1
A paper of Economics, 9708
Questions:
30
Year:
2005
Paper:
1
Variant:
0
Login to start this paper & get access to powerful tools
7
The market for tractors is supplied by two firms, X and Y, each initially having 50 % of the market. A 10 % increase in the price of tractors leads to an increase in output from firm X of 10 % and from firm Y of 20 %. What is the price elasticity of supply of tractors in this market?
2. The price system and the microeconomy (AS Level)  →  2.3. Price elasticity of supply
2. The price system and the microeconomy (AS Level)  →  2.2. Price elasticity, income elasticity and cross elasticity of demand
Open
10
The diagram shows the supply and demand curves for a product. The government imposes an indirect tax on the product. S D price quantity O What will be the outcome of this for the producers’ revenue and the incidence of the tax burden?
3. Government microeconomic intervention (AS Level)  →  3.2. Methods and effects of government intervention in markets
2. The price system and the microeconomy (AS Level)  →  2.1. Demand and supply curves
2. The price system and the microeconomy (AS Level)  →  2.4. The interaction of demand and supply
Open
19
The world consists of two countries, Sealand and Fantasia, both of which produce just two goods, X and Y. The production of X is land-intensive and the production of Y is labour-intensive. Sealand has plentiful supplies of both land and labour. Fantasia has a relative scarcity of labour. What can be deduced from this?
6. International economic issues (AS Level)  →  6.1. The reasons for international trade
1. Basic economic ideas and resource allocation (AS Level)  →  1.1. Scarcity, choice and opportunity cost
Open
24
The table shows the share of a worker’s income spent on three classes of good and the percentage change in the prices of the goods over a year. share of income spent on goods change in prices of goods clothing +25 % food +50 % fuel -25 % Over the same period the worker’s money income rises by 25 %. What happens to the worker’s real income?
4. The Macroeconomy (AS Level)  →  4.1. National income statistics
6. International economic issues (AS Level)  →  6.4. Exchange rates
5. Government macroeconomic intervention (AS Level)  →  5.3. Monetary policy
Open
30
Every reasonable effort has been made to trace all copyright holders where the publishers (i.e. UCLES) are aware that third-party material has been reproduced. The publishers would be pleased to hear from anyone whose rights they have unwittingly infringed. University of Cambridge International Examinations is part of the University of Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge. 30 Why might a 10 % devaluation of a country’s currency fail to improve its balance of trade deficit?
6. International economic issues (AS Level)  →  6.4. Exchange rates
11. International economic issues (A Level)  →  11.2. Exchange rates
6. International economic issues (AS Level)  →  6.3. Current account of the balance of payments
Open