9708_s14_qp_13
A paper of Economics, 9708
Questions:
30
Year:
2014
Paper:
1
Variant:
3
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8
The diagram shows the relationship between a firm’s total revenue and the quantity of goods sold. revenue quantity O TR What is the price elasticity of demand for the good?
2. The price system and the microeconomy (AS Level)  →  2.2. Price elasticity, income elasticity and cross elasticity of demand
7. The price system and the microeconomy (A Level)  →  7.8. Differing objectives and policies of firms
2. The price system and the microeconomy (AS Level)  →  2.4. The interaction of demand and supply
Open
12
The graph shows the annual % changes in the prices of new houses and existing houses in the United Kingdom between 2010 and 2012. –5 –10 –15 2010 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 Jan Feb Mar new houses existing houses price (% change) What can be concluded about the graph?
4. The Macroeconomy (AS Level)  →  4.3. Aggregate Demand and Aggregate Supply analysis
2. The price system and the microeconomy (AS Level)  →  2.2. Price elasticity, income elasticity and cross elasticity of demand
2. The price system and the microeconomy (AS Level)  →  2.1. Demand and supply curves
Open
17
A local council runs a museum. It used to charge an admission fee. It decided to give free entry in the hope of encouraging more people to use the museum and find out about the history of its area which the council regards as being important. What can be said about the museum?
1. Basic economic ideas and resource allocation (AS Level)  →  1.6. Classification of goods and services
3. Government microeconomic intervention (AS Level)  →  3.1. Reasons for government intervention in markets
Open
18
In the diagram, D is the demand curve of an agricultural commodity and S1 is the initial supply curve. D S1 S2 price ($) quantity (000 tonnes) The government introduces a buffer scheme to maintain farm incomes at their initial level. What quantity would the government need to buy from the farmers to add to the buffer stock if a bumper harvest causes the supply curve to move to S2?
4. The Macroeconomy (AS Level)  →  4.3. Aggregate Demand and Aggregate Supply analysis
2. The price system and the microeconomy (AS Level)  →  2.1. Demand and supply curves
Open
19
The production possibility curve shows island J’s ability to produce fish and fruit. It specialises entirely in fish in which it has a comparative advantage and trades fish for fruit from island K. As a result, island J increases its consumption from 80 tonnes of fish and 60 tonnes of fruit, point X, to 100 tonnes of fish and 100 tonnes of fruit, point Y. X Y fish fruit O What was island J’s exchange rate of fish for fruit?
1. Basic economic ideas and resource allocation (AS Level)  →  1.5. Production possibility curves
Open
22
The European Union imposes a quota on the volume of garments imported from China. What is likely to be the effect on the prices received by Chinese garment producers and on the prices paid by the consumers of Chinese garments in Europe and the United States (US)?
3. Government microeconomic intervention (AS Level)  →  3.2. Methods and effects of government intervention in markets
4. The Macroeconomy (AS Level)  →  4.1. National income statistics
3. Government microeconomic intervention (AS Level)  →  3.1. Reasons for government intervention in markets
Open
25
In Year 1 the price of a barrel of oil increased from $60 to $110. In Year 2 there was a further increase to $115 a barrel. Assume that oil price changes have an immediate impact on the general level of prices and that their Consumer Price Index weightings remains unchanged. What will be the effect of the changes in the oil price on a country’s Consumer Price Index and on its inflation rate in Year 2 compared with Year 1?
4. The Macroeconomy (AS Level)  →  4.6. Price stability
2. The price system and the microeconomy (AS Level)  →  2.5. Consumer and producer surplus
5. Government macroeconomic intervention (AS Level)  →  5.3. Monetary policy
Open
28
Assume the Chinese monetary authorities are committed to maintaining the exchange rate of China’s currency, the Yuan, against the US$ between P1 and P2 on the diagram. price of Yuan (in US$) quantity of Yuan D1 D2 S P2 P1 O What might they do if demand changed from D1 to D2?
6. International economic issues (AS Level)  →  6.4. Exchange rates
11. International economic issues (A Level)  →  11.2. Exchange rates
11. International economic issues (A Level)  →  11.1. Policies to correct disequilibrium in the balance of payments
Open
29
The table shows observations of the exchange rate of an economy and its current account balance over six years. year exchange rate (US dollars per unit of domestic currency) current account balance (billions of US dollars) 2.0 –3 1.5 –5 1.5 –4 1.5 –3 1.5 1.5 +3 Which concept does the data in the table illustrate?
6. International economic issues (AS Level)  →  6.3. Current account of the balance of payments
6. International economic issues (AS Level)  →  6.4. Exchange rates
11. International economic issues (A Level)  →  11.2. Exchange rates
Open