9708_s16_qp_11
A paper of Economics, 9708
Questions:
30
Year:
2016
Paper:
1
Variant:
1
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1
A driver makes the following estimates in considering the purchase of a car which she intends to use only when she would otherwise have used public transport. $ purchase price of car value of car after one year car operating and repair costs, insurance and taxation for one year cost of using public transport for one year instead of travelling by car potential earnings after tax on $6000 invested for one year What will be the opportunity cost in monetary terms to the driver over the year of travelling by car rather than by public transport?
7. The price system and the microeconomy (A Level)  →  7.4. Private costs and benefits, externalities and social costs and benefits
1. Basic economic ideas and resource allocation (AS Level)  →  1.1. Scarcity, choice and opportunity cost
Open
3
The diagram shows the production possibility curves of two economies, X and Y. consumer goods capital goods X Y Which statement about the two economies is correct?
1. Basic economic ideas and resource allocation (AS Level)  →  1.5. Production possibility curves
7. The price system and the microeconomy (A Level)  →  7.5. Types of cost, revenue and profit, short-run and long-run production
7. The price system and the microeconomy (A Level)  →  7.4. Private costs and benefits, externalities and social costs and benefits
Open
6
There are two main types of coffee grown, arabica and robusta. The table gives details of the four largest coffee producers for 2013-2014. Production is measured in thousand 60 kilogram bags. coffee producer arabica coffee robusta coffee total output Brazil 39 400 14 400 53 800 Vietnam 1 175 27 800 28 975 Indonesia 1 650 7 850 9 500 Colombia 11 000 11 000 What can be concluded from the table about production in the four countries?
6. International economic issues (AS Level)  →  6.1. The reasons for international trade
2. The price system and the microeconomy (AS Level)  →  2.5. Consumer and producer surplus
Open
9
The price elasticity of supply of an ‘App’ for a phone is perfectly elastic. The current selling price for the ‘App’ is $10 and 200 ‘Apps’ are sold per day. The ‘App’ becomes more popular and, as a result, demand increases by 50% at every price. What will be the outcome of the change in demand?
2. The price system and the microeconomy (AS Level)  →  2.3. Price elasticity of supply
7. The price system and the microeconomy (A Level)  →  7.8. Differing objectives and policies of firms
Open
21
The table shows information about a country whose consumers spend their income on three commodities, P, Q and R. commodity index of prices in year 1 index of prices in year 2 consumers’ expenditure in year 1 P $100 million Q $300 million R $100 million Between year 1 and year 2 how has the general level of prices changed?
4. The Macroeconomy (AS Level)  →  4.1. National income statistics
2. The price system and the microeconomy (AS Level)  →  2.2. Price elasticity, income elasticity and cross elasticity of demand
Open
23
If a country has a surplus in its balance of payments then its money supply is likely to A fall because more of its goods were purchased by foreign consumers than by consumers at home. B increase because the foreign currency received for exports will be exchanged for domestic currency. C remain constant because the surplus is automatically offset by a loan for the deficit countries. D remain unchanged because its exports are bought with foreign currency.
6. International economic issues (AS Level)  →  6.5. Policies to correct imbalances in the current account of the balance of payments
6. International economic issues (AS Level)  →  6.3. Current account of the balance of payments
Open