9708_s18_qp_13
A paper of Economics, 9708
Questions:
30
Year:
2018
Paper:
1
Variant:
3
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2
A government proposes to introduce a road congestion charge which would require private motorists to pay a toll for road use. Which statement relating to the proposal is normative?
1. Basic economic ideas and resource allocation (AS Level)  →  1.2. Economic methodology
7. The price system and the microeconomy (A Level)  →  7.4. Private costs and benefits, externalities and social costs and benefits
3. Government microeconomic intervention (AS Level)  →  3.1. Reasons for government intervention in markets
Open
10
The diagrams show some information about oil. 97.5 95.0 92.5 90.0 87.5 85.0 millions of barrels per day $ per barrel world oil production brent crude oil price Which diagram represents the change in the oil market between 2013 and 2015?
2. The price system and the microeconomy (AS Level)  →  2.4. The interaction of demand and supply
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
13
A local government decides to issue a card for residents that gives a 50% reduction on entry prices for visits to local museums. The diagram shows the demand curve for a resident who currently makes 3 museum visits. price ($) demand for museum visits W X Y Z What would be the change in the resident’s consumer surplus when the card is issued?
2. The price system and the microeconomy (AS Level)  →  2.1. Demand and supply curves
2. The price system and the microeconomy (AS Level)  →  2.5. Consumer and producer surplus
2. The price system and the microeconomy (AS Level)  →  2.4. The interaction of demand and supply
Open
14
The demand and supply functions for a product are quantity demanded = 1500 + 50P and quantity supplied = 300P – 2000 where P = price. With government regulation, the current price in the market is $15. What can be concluded about the form of price regulation and the balance of demand and supply in the market?
2. The price system and the microeconomy (AS Level)  →  2.4. The interaction of demand and supply
2. The price system and the microeconomy (AS Level)  →  2.1. Demand and supply curves
Open
16
A government decides to encourage apple consumption as a report states that eating apples is good for health. It subsidises apple growers. The diagram shows the market for apples. S1 D1 Q1 P1 P2 P3 Q2 O quantity of apples price What would the subsidy need to be to change the market equilibrium quantity from Q1 to Q2?
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
Open
20
The average consumer divides his expenditure between food, clothing, accommodation and transport in the ratio 2 : 1 : 4 : 3. During the course of a year, the price of food falls by 2%, the price of clothing increases by 4%, the price of accommodation increases by 10% and the price of transport remains constant. Assuming that the weights of a price index reflect the expenditure of the average consumer, what is the increase in the index over the year?
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)  →  2.5. Consumer and producer surplus
Open
21
The table shows an extract from a country's current account of its balance of payments accounts. credits $ million export of goods G export of services 204 465 total exports of goods and services 511 275 debits $ million import of goods 417 006 import of services 126 369 total imports of goods and services 543 375 balance $ million trade in goods –110 196 trade in services H total trade in goods and services –32 100 What is the value of export of goods, G, and what is the value of the balance of trade in services, H?
6. International economic issues (AS Level)  →  6.3. Current account of the balance of payments
6. International economic issues (AS Level)  →  6.5. Policies to correct imbalances in the current account of the balance of payments
Open
22
In June 2016 the UK voted to leave the European Union. The table shows what happened to the value of the pound sterling before and after the vote. June Sept £1 = $1.48 £1 = $1.32 The UK is a major trading nation. What is likely to be the short-term impact of the changes in the value of the pound sterling on the UK economy?
6. International economic issues (AS Level)  →  6.4. Exchange rates
5. Government macroeconomic intervention (AS Level)  →  5.3. Monetary policy
11. International economic issues (A Level)  →  11.2. Exchange rates
Open
27
A country takes no part in international trade and its domestic market price is Pd. The country decides to engage in free trade and the market price rises to the world price (Pw). price quantity O Pw Pw Pd Sd Dd X Y Z What happens to consumer surplus and producer surplus when the economy engages in free trade?
2. The price system and the microeconomy (AS Level)  →  2.5. Consumer and producer surplus
6. International economic issues (AS Level)  →  6.1. The reasons for international trade
Open
30
Bulgaria’s Consumer Price Index changed at an annual rate of –2.2% in April 2016. In May the annual rate of change was –1.4%. What fiscal policy and monetary policy would be most appropriate in the short run to restore price stability?
4. The Macroeconomy (AS Level)  →  4.6. Price stability
10. Government macroeconomic intervention (A Level)  →  10.3. Effectiveness of policy options to meet all macroeconomic objectives
5. Government macroeconomic intervention (AS Level)  →  5.2. Fiscal policy
Open