Escolar Documentos
Profissional Documentos
Cultura Documentos
1 An economy with few resources is encouraged to improve the quality of its human resources.
2 The diagram shows a countrys production possibility curve for rice and wheat.
P
rice
Q R S
O wheat
A P to Q B Q to R C R to S D S to P
What is the opportunity cost of this increased period of school education to the young people
affected?
A a decrease in supply
B a fall in price
C an increase in demand
D a rise in price
What will happen to total revenue if the price of the product falls by 25%?
6 In 2014, a plan for a major new rail link funded by central and regional government was
announced. It would involve the redevelopment of a city area, generate 14 000 jobs and allow the
development of 2000 homes and offices for private businesses.
8 What is a disadvantage for a trade union representing workers in a company that has increased
specialisation?
9 A government finance minister said that the purchasing power of most peoples incomes had
risen in the last year.
A money wages
B net income after tax
C real wages
D wage rates
10 The table shows the change in incomes for a number of occupations between 2003 and 2013.
change in
occupation income
%
builders 80
plumbers 60
electricians 50
police officers 12
teachers 10
nurses 5
A $1 000 $800
B $5 000 $1 600
C $6 000 $2 400
D $50 000 $16 000
Joel owns and runs a mobile telephone accessories and repair shop.
A multinational company
B partnership
C public company
D sole proprietor
What is the firms total revenue and the price of the product?
A 20 20
B 1 000 500
C 20 000 20
D 20 000 500
15 The table shows the daily output and costs of four firms making chairs.
A 6 100 140
B 9 30 150
C 12 200 160
D 15 120 330
A a basket of goods
B average incomes
C economic growth rate
D income tax rate
22 The table shows the percentage changes in earnings and consumer prices for four countries for
one year.
Which country is likely to have experienced the greatest increase in real income during the year?
23 In the US Consumer Price Index (CPI), food has a weighting of 13.7%. In India food has a
weighting of 46.2% in the CPI.
25 A country has a birth rate of 30 per 1000 and a death rate of 35 per 1000 and no migration.
26 The diagram shows the different age distribution of the population in three areas of the world.
%
69.6
65.6
60.7
area X
area Y
35.1
area Z
21.5
18.1
12.9 12.3
4.2
Other things being equal, what can be deduced from the diagram?
28 Drinks producers in India are resisting plans to remove tariffs on imported drinks. They claim that
a reduction in tariffs would destroy the emerging drinks industry with large-scale imports of cheap
drinks.
PPC2
capital PPC1
goods
O consumer goods
What may cause the movement of the production possibility curve from PPC1 to PPC2?
2 An increase in the number of manufacturing robots in the car manufacturing industry represents
an increase in the quantity of which factor of production?
A capital
B enterprise
C labour
D land
3 The diagram shows the choices for an individual between leisure and earnings.
18
15
12
hours of leisure X
9
per day
Y
6
0
10 20 30 40 50 60
earnings $
What is the opportunity cost to the individual of the extra earnings when moving from position X
to position Y?
A $10
B $40
C 3 hours of leisure per day
D 9 hours of leisure per day
6 Developers want to increase the size of a major retail shopping area in a city. It is thought that the
proposal would create hundreds of jobs, be profitable for the shops but cause major traffic
congestion.
S2
S1
P2
price P1
D
O Q2 Q1
quantity
What would have caused the equilibrium price to rise from OP1 to OP2?
9 What is the usual reason why citizens trust their countrys banknotes?
10 In the diagram, D1D1 and S1S1 represent the demand for and the supply of labour. W indicates a
legal minimum wage.
An influx of immigrant labour causes the supply curve for labour to shift from S1S1 to S2S2.
D1 S1
S2
W
wage
($)
S1 D1
S2
0 1 2 3 4 5 6 7 8 9 10
labour (millions)
How many people will be employed if the minimum wage legislation is then abolished?
For these three people, what is the most likely order of income, from highest income to lowest
income?
A XYZ
B YXZ
C YZX
D ZXY
A by maximising the difference between its total revenue and total cost
B by maximising the number of goods that it sells
C by minimising the number of goods that it keeps in stock
D by minimising the difference between average revenue and average cost
13 Which characteristic does a firm in perfect competition have in common with a monopoly?
14 The table shows the units of factors of production that a firm needs to employ for two different
levels of output.
5 2 4 100
10 4 8 150
15 The diagram shows the demand and supply of places in independent (private) schools which
charge fees. The equilibrium position is X.
The costs of independent (private) schools rise. Also a report is issued which states that
Government schools achieve very good examination results.
C
B
price A X
O quantity
18 A government decides to make two changes to its taxation policies. It lowers the tax on petrol and
raises the tax on food.
$m
20 What is Gross Domestic Product (GDP) divided by to calculate GDP per head?
A net migration
B the birth rate
C the total population
D the working population
A cash holders
B creditors
C debtors
D fixed income earners
22 The table gives information about three economic indicators in four countries.
24 Why may the figure calculated for a developing countrys Gross Domestic Product be inaccurate?
A 100 800 51
B 200 6000 62
C 300 600 48
D 1000 1600 63
26 It has been predicted that by 2050 China will have 53 million fewer children under 14, 100 million
fewer workers and 234 million more people aged over 60.
27 What might cause the balance on the current account of Mauritius to improve?
29 It has been suggested that all countries producing arms should ban the export of weapons and
cut production in order to reduce the risk of war.
30 70% of the 10 million kilograms of tea produced in India is exported. The UK, Japan, and
Germany buy the most.
Wholesale prices rose 10% in 2013 as supply was restricted because of a strike.
1 What economic concept must be at work when there is movement by a country along its
production possibility curve?
A economies of scale
B equilibrium price
C maximum profit
D opportunity cost
2 The diagram shows the choices for an individual between leisure and earnings.
24
20
16
hours of leisure 12 X
per day
Y
8
0
20 40 60 80 100 120
earnings $
The person decides to take a job that gives more leisure time.
What is the opportunity cost to the individual of moving from position Y to position X?
A $20
B $80
C 4 hours of leisure per day
D 12 hours of leisure per day
6 Developers want to increase the size of a major retail shopping area in a city. It is thought that the
proposal would create hundreds of jobs, be profitable for the shops but cause major traffic
congestion.
7 The diagram shows the price of a product during year 1 and year 2.
price
($)
O year 1 year 2
Which changes in demand and supply are consistent with the price behaviour in year 2?
demand supply
9 When will a central bank act as lender of last resort to a commercial bank?
10 In the diagram, D1D1 and S1S1 represent the demand for and the supply of labour. W indicates a
legal minimum wage.
An influx of immigrant labour causes the supply curve for labour to shift from S1S1 to S2S2.
D1 S1
S2
W
wage
($)
S1 D1
S2
0 1 2 3 4 5 6 7 8 9 10
labour (millions)
How many people will be employed if the minimum wage legislation is then abolished?
For these three people, what is the most likely order of income, from lowest income to highest
income?
A XYZ
B YXZ
C YZX
D ZXY
A by maximising the difference between its total revenue and total cost
B by maximising the number of goods that it sells
C by minimising the number of goods that it keeps in stock
D by minimising the difference between average revenue and average cost
14 The table shows the units of factors of production that a firm needs to employ for two different
levels of output.
6 8 4 100
9 12 6 200
15 By 2014, government subsidies for the Chinese steel industry led to 200 million tonnes of excess
output.
Which would represent the position after the subsidy but before the market adjusted?
A B
price price
($) ($)
C D
price price
($) ($)
17 A government fixes the rate of income tax at $0.20 per dollar earned.
A indirect
B progressive
C proportional
D regressive
$m
21 A country has a very high Gross Domestic Product and a small population but has a low standard
of living.
A There is a high inequality of income distribution and a high provision of merit goods.
B There is a high inequality of income distribution and a limited provision of merit goods.
C There is equality of income distribution and a high provision of merit goods.
D There is equality of income distribution and a low provision of merit goods.
22 The table gives information about three economic indicators in four countries.
23 The weight for a product in the consumer price index was increased.
24 China is classified as a developing country. Recently, contributions to its Gross Domestic Product
(GDP) were agriculture 10%, construction 13%, manufacturing 32% and services 45%.
Which contribution to GDP usually decreases first when countries move to a higher level of
development?
A agriculture
B construction
C manufacturing
D services
25 Some people think that the debts and interest payments of the poorest countries in the world
should be cancelled.
What might be a disadvantage for the poorest countries if this were done?
infant mortality
birth rate death rate life expectancy
rate
A 41 20 31 49
B 32 14 29 59
C 25 6 25 79
D 25 5 22 79
27 What might cause the balance on the current account of Mauritius to improve?
29 It has been suggested that all countries producing arms should ban the export of weapons and
cut production in order to reduce the risk of war.
30 The US currently trades in oil with the UK. The discovery of new oil and gas deposits in the US
will mean that its oil imports decrease and its oil exports increase.
From the initial equilibrium point of X, which letter indicates the new equilibrium point for the US
exchange rate?
S1
B
A S
price
of $ X S2
C
D
D1 D D2
O
quantity of $
2 Which firm is likely to find it most difficult to expand the use of its main factor of production?
3 The diagram shows the choices for an individual between leisure and earnings.
18
15
12
hours of leisure X
9
per day
Y
6
0
10 20 30 40 50 60
earnings $
What is the opportunity cost to the individual of the extra earnings when moving from position X
to position Y?
A $10
B $40
C 3 hours of leisure per day
D 6 hours of leisure per day
6 Developers want to increase the size of a major retail shopping area in a city. It is thought that the
proposal would create hundreds of jobs, be profitable for the shops but cause major traffic
congestion.
7 The diagram shows demand and supply curves for a product. Initially the market is in equilibrium
at point X.
What would be the new equilibrium point if the costs of production fell and a rumour circulated
that the product could become unsafe in extreme weather conditions?
A X C
price
O quantity
A It issues currency.
B It offers overdraft facilities to individuals.
C It operates deposit accounts.
D It raises taxation.
10 In the diagram, D1D1 and S1S1 represent the demand for and the supply of labour. W indicates a
legal minimum wage.
An influx of immigrant labour causes the supply curve for labour to shift from S1S1 to S2S2.
D1 S1
S2
W
wage
($)
S1 D1
S2
0 1 2 3 4 5 6 7 8 9 10
labour (millions)
How many people will be employed if the minimum wage legislation is then abolished?
For these three people, what is the most likely order of income, from lowest income to highest
income?
A YXZ
B YZX
C ZXY
D ZYX
A by maximising the difference between its total revenue and total cost
B by maximising the number of goods that it sells
C by minimising the number of goods that it keeps in stock
D by minimising the difference between average revenue and average cost
14 A manufacturing firm increases the scale of its production. Its average total cost curve in the long
run (LRAC) is shown below.
At which point on the LRAC curve is the firm experiencing diseconomies of scale?
A LRAC
cost D
B C
O output
15 The table shows the units of factors of production that a firm needs to employ for two different
levels of output.
4 3 5 20
8 6 10 40
17 When a government aims to encourage economic growth it may adopt supply-side policies.
$m
19 Which policy combination will be the most effective if a government wishes to increase the level
of employment?
21 Which measures, in addition to Gross Domestic Product per capita, are included in the Human
Development Index?
22 The table gives information about three economic indicators in four countries.
23 Which type of government policy would be most suitable to control external costs of production?
A employment policy
B fiscal policy
C monetary policy
D trade policy
24 The diagrams show birth rate (BR) and death rate (DR) in three countries, X, Y and Z, in two
years, 1 and 2.
X Y Z
BR
BR, BR, BR,
DR DR DR DR
BR
DR
DR BR
1 2 1 2 1 2
year year year
Where was there a rise in population in year 1 and a fall in population in year 2?
25 Why might the emigration of workers help the economy of a developing country?
26 What combination of changes in the birth rate and death rate is most likely to increase the
dependency ratio in a country?
A falls falls
B falls rises
C rises falls
D rises rises
27 What might cause the balance on the current account of Mauritius to improve?
29 It has been suggested that all countries producing arms should ban the export of weapons and
cut production in order to reduce the risk of war.
30 The value of the Pakistani rupee changes, from 60 rupees to US$1, to 50 rupees to US$1.
What effect will this have on the price of Pakistani products sold in the US and the price of US
products sold in Pakistan?
A increase increase
B increase decrease
C decrease increase
D decrease decrease
labour capital
A profit interest
B rent profit
C wages profit
D wages interest
3 The diagram shows a production possibility curve for maize and cotton.
maize P Q
R S
O cotton
A P to R B Q to R C S to Q D S to R
4 The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium
with a higher price for the good and a lower quantity traded.
5 A demand curve shows the relationship between the quantity demanded and
A a change in income
B consumer tastes
C the supply of the product
D the price of the product
This is likely to
8 What might be a disadvantage to a trade union when arguing for an increase in its members pay?
income wealth
10 Nazmin Uddin works in a local office as a secretary three days a week. She lives with her parents
in a small apartment.
Meer Ali owns a successful fitness centre that employs about twenty people. He owns a large
house.
income spending
($ per month) ($ per month)
4000 4150
4300 4375
4600 4650
4900 4900
5200 4975
5500 5275
What is the first level of income shown at which savings are positive?
12 A survey of managers in the USA revealed that most businessmen feel that a companys
responsibility is to serve the interests of owners, employees, customers and the public.
The idea of profit maximisation, in contrast, implies that a companys main responsibility should
be to the
A customers
B employees
C owners
D public
14 A firm has fixed costs of $200 for its daily output. The table shows its daily total variable costs.
output (units) 1 2 3 4
A it falls continuously
B it is highest at output 4 units
C it is lowest at output 4 units
D it rises continuously
15 The table shows the growth rate of output (%) in four sectors of an economy.
Which two sectors showed an increase in the growth rate in the first half of 2014?
16 A government decides to sell the monopoly supply of gas to households to a private firm.
How could the government protect the interests of households after selling a large company to
the private sector?
17 In 2015, 70 000 extra people lost their jobs but total employment rose by 75 000. What could
explain this?
18 The table shows taxes as a percentage of Gross Domestic Product (GDP) for four countries.
From this information, which country had the highest percentage of direct taxation as a
percentage of GDP?
A 12 14 2 5
B 14 15 2 14
C 17 13 5 10
D 18 10 1 10
19 A government gives farmers a subsidy of $5 per kilo to supply food on the open market where X
is the original equilibrium position.
S3 S1
20 S2
X
15
price
($ per kilo) 10 D1
0
4 8 12 16 20 24
quantity supplied
(000 kilos)
What will be the new equilibrium price and quantity supplied as a result of the subsidy?
A 10 16
B 13 20
C 15 16
D 20 8
A a base year
B incomes
C price elasticity of products
D quantity supplied
21 Why is nominal Gross Domestic Product not a good measure to compare the standard of living in
a country between two years?
23 Some goods take a greater percentage of a typical households total spending than others.
25 A government introduces state benefits for the unemployed and increases the top rate of income
tax to pay for the benefits.
What effect will these changes have on poverty and the tax system?
26 The chart shows total world carbon emissions in 1995 and predicted emissions by 2035.
1995 2035
other Asia
6%
developing developing
world world
27% 50%
other US
Latin
China US Asia
America 4% 15%
11% 22% 14% W.
Africa 3% China Europe
Middle East 17% 12%
W. Europe
3% 17% E. Europe
E. Europe 19%
Japan Africa
27%
7% 8%
Latin
America
6% developed
developed world
world 50%
Middle Japan
73%
East 4%
5%
A Africa and the Middle East will have responsibility for the same amount of carbon emissions
in 2035 as in 1995.
B Between 1995 and 2035, the Middle East will have increased its industrialisation by as much
as Latin America.
C By 2035 the combined percentage of carbon emissions caused by Africa and Latin America
will have doubled.
D The US will have decreased its carbon emissions by a smaller percentage than Western
Europe.
What would not be a reason why they might have chosen to do this?
30 The table shows components of Japans current account balance in trillion Yen for 2011 and
2012.
A a $20 banknote
B an office
C a photocopier
D a secretary
3 In 2014 private companies began to drill in areas of the country to exploit natural gas supplies
that were known to exist.
R
V
manufactured
goods S
T
U
O gas supplies
How might this decision be represented on the diagram which shows a production possibility
curve for the country?
A by a movement from R to S
B by a movement from R to V
C by a movement from S to T
D by a movement from U to V
4 The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium
with a higher price for the good and a lower quantity traded.
What is most likely to decrease as a result of an increase in demand for cocoa beans?
This is likely to
7 The use of cars in many cities creates negative externalities. The diagram shows the free market
equilibrium X1 and the socially efficient market equilibrium X2.
S2
S1
costs P2 X2
/ benefits
P1 X1
D
O
quantity
8 What could increase the ability of a trade union to gain a pay rise for its members in a coat
factory?
10 Nazmin Uddin works in a local office as a secretary three days a week. She lives with her parents
in a small apartment.
Meer Ali owns a successful fitness centre that employs about twenty people. He owns a large
house.
income spending
($ per month) ($ per month)
2600 2625
2900 2925
3200 3190
3500 3275
3800 3500
4100 3725
What is the first level of income shown at which savings are positive?
12 A survey of managers in the USA revealed that most businessmen feel that a companys
responsibility is to serve the interests of owners, employees, customers and the public.
The idea of profit maximisation, in contrast, implies that a companys main responsibility should
be to the
A customers.
B employees.
C owners.
D public.
14 A firm produced 200 cars a week and employed 50 workers. A fall in demand caused the firm to
reduce its output to 160 cars a week and its labour force to 32.
A It fell by 20%.
B It fell by 25%.
C It increased by 20%.
D It increased by 25%.
15 A firm has fixed costs of $100 for its daily output. The table shows its daily total variable costs.
output (units) 1 2 3 4
total variable costs ($) 200 360 500 720
A It falls continuously.
B It is highest at output 4 units.
C It is lowest at output 3 units.
D It rises continuously.
16 A government decides to sell the monopoly supply of gas to households to a private firm.
How could the government protect the interests of households after selling a large company to
the private sector?
17 A government decides to increase the rate of income tax and spend the extra revenue on
providing training colleges.
18 A government taxes farmers $12 per kilo when they supply food on the open market where X is
the original equilibrium position.
50
S4 S3 S1
S2
40
X
price 30
($ per kilo)
20
D1
10
0
10 20 30 40 50 60
quantity supplied
(000 kilos)
What will be the new equilibrium price and quantity supplied as a result of the tax?
A 20 40
B 25 50
C 35 30
D 40 20
19 The table shows taxes as percentages of Gross Domestic Product (GDP) for four countries.
From this information, which country had the lowest percentage of direct taxation as a percentage
of GDP?
tax on
income tax tax on tax on goods
business
% dividends % and services %
profits %
A 12 14 2 4
B 14 15 2 13
C 17 8 5 9
D 17 13 5 9
21 How is the pattern of employment likely to change when a country becomes more developed?
Which increase in the first indicator is most likely to lead to an increase in the second indicator?
24 What would be most likely to cause the population to decrease if other things remain constant?
25 Developed countries have a high and increasing proportion of their population over the age of 65.
Which economic consequence will be most likely to result from this kind of population change?
26 The chart shows total world carbon emissions in 1995 and predicted emissions by 2035.
1995 2035
other Asia
6%
developing developing
world world
27% 50%
other US
Latin
China US Asia
America 4% 15%
11% 22% 14% W.
Africa 3% China Europe
Middle East 17% 12%
W. Europe
3% 17% E. Europe
E. Europe 19%
Japan Africa
27%
7% 8%
Latin
America
developed 6% developed
world world
73% Middle Japan 50%
East 4%
5%
What would not be a reason why they might have chosen to do this?
30 In 2009 the exchange rate of the Singapore dollar changed from 1.49 = 1 US dollar to 1.43
Singapore dollars = 1 US dollar.
How would this affect the import prices and export prices for Singapore?
A decrease decrease
B decrease increase
C increase decrease
D increase increase