9708_s16_qp_13
A paper of Economics, 9708
Questions:
30
Year:
2016
Paper:
1
Variant:
3
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1
The diagram shows different production possibilities for a bakery. cakes bread They wish to increase production of cakes from 15 units to 25 units. What is the opportunity cost?
1. Basic economic ideas and resource allocation (AS Level)  →  1.5. Production possibility curves
1. Basic economic ideas and resource allocation (AS Level)  →  1.1. Scarcity, choice and opportunity cost
7. The price system and the microeconomy (A Level)  →  7.5. Types of cost, revenue and profit, short-run and long-run production
Open
11
In the market for a good the quantity supplied (QS) and the quantity demanded (QD) are given by QS = P – 30 and QD = 240 – 2P where P = price in dollars. A change in the tax on the good makes QS = P – 36. How will the change affect equilibrium price?
2. The price system and the microeconomy (AS Level)  →  2.4. The interaction of demand and supply
5. Government macroeconomic intervention (AS Level)  →  5.4. Supply-side policy
2. The price system and the microeconomy (AS Level)  →  2.1. Demand and supply curves
Open
12
The diagram shows a market for a good which is supplied partly from domestic production and partly from imports. Sh1 shows domestic supply and Sw shows world supply. Domestic supply then shifts to Sh2. price quantity O R D Sw Sh1 T U V Sh2 What will be the level of consumption and the associated volume of imports after the supply shift?
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
13
In the diagram, D is the demand curve for Indian tea exports and S1 is the initial supply curve. O quantity price D x y w z S1 S2 The Indian government removes the tax on tea exports, which causes the supply curve to shift to S2. Which areas in the diagram measure the resulting loss in tax revenue to the Indian government and the resulting gain in consumer surplus?
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
14
In a country, the standard rate of sales tax is 10%, but food is not taxed and luxury goods are taxed at 20%. The table shows the patterns of expenditure of three family types. commodity group family type by income low medium high food 50% 40% 30% standard-rated goods 40% 30% 20% luxury goods 10% 30% 50% Which combination correctly describes the sales taxes in this country?
5. Government macroeconomic intervention (AS Level)  →  5.2. Fiscal policy
9. The macroeconomy (A Level)  →  9.1. The circular flow of income
3. Government microeconomic intervention (AS Level)  →  3.1. Reasons for government intervention in markets
Open
18
Governments reduce their stock of assets by privatisation. They increase their stock of assets by nationalisations. The diagram shows global sales of state-owned assets and global state purchases of private stock between 1988 and 2013 in US$ billion. US$ billion privatisations nationalisations key What can be concluded from the diagram?
3. Government microeconomic intervention (AS Level)  →  3.1. Reasons for government intervention in markets
3. Government microeconomic intervention (AS Level)  →  3.2. Methods and effects of government intervention in markets
Open
21
Suppose the average consumer’s expenditure is divided between bread, meat, milk and vegetables in the ratio 4 : 3 : 2 : 1. During the course of a year, the price of bread falls by 10%, the price of meat increases by 20% and the prices of both milk and vegetables increase by 10%. What is the increase in the average price level during the year?
4. The Macroeconomy (AS Level)  →  4.3. Aggregate Demand and Aggregate Supply analysis
2. The price system and the microeconomy (AS Level)  →  2.5. Consumer and producer surplus
Open
26
Countries X and Y produce the world supply of computers and wheat. Each country divides its resources equally between the two products and produces the following. computers units wheat units X Y How would total output be altered if each country specialised completely in the product in which it has a comparative advantage?
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