Guess Paper-2 by Qamar Baloch AS Level ECONOMICS Mega Preps

Email: ahmed2281@gmail.com Mob: 03217555550, WhatsApp: 03334429673

This guess paper is purely personal judgement based on previous experience and not provided by Cambridge
or any of its representative.

Important Announcement
I would be conducting 9 hours grand class for AS Economics on 19 th April, for A2 Economics on 21st April and
IGCSE/O Level Economics on 20th April, 2019 under “Mega Preps”. The Venue for these classes is also
amazing. In brief it is a golden opportunity for all of you to revise entire syllabus in one day along with past
papers and exam tips. Best opportunity for learning and socializing. Proper facility is available to offer prayers,
enjoy a wide variety of qualitative food, to interact with career counselors for future placement opportunities
in universities and much more. Above all solution to the guess paper and expected case studies and MCQS will
be shared in this class. For registration and to avail discount you may contact me on above numbers.

More Importantly along with me; the best Teacher of the Town “ Sir Abu Bakar Ahmad” would be conducting
mega classes for Business Studies. You may contact me for that too to get discount.

View the venue and our agenda through following video links;

1. Venue: Aiwan e Qaid, F-9, Islamabad

https://www.facebook.com/megapreps/videos/269006490653384/UzpfSTEwMDAwMjExNDgwMzU
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4. To order my books online: https://studyresources.com.pk/search?type=product&q=qamar+baloch

Section B
Question # 1
(a) An economy is faced by the exhaustion of an important natural resource at a time when
it is introducing improved technology. Explain how these events will affect the
economy’s production possibility curve. [8]
(b) Discuss whether free market economy always produces desirable outcomes. [12]

Question #2
(a) Explain the meaning of the term ‘equilibrium price and quantity’ in the market for a good
or service, and show how a new equilibrium position is established when there is a
decrease in demand. (18, 19pg) [8]

1
(b) Discuss the usefulness to businesses of knowledge of price elasticity of demand and
income elasticity of demand. [12]

Question #3
(a) Explain, with the aid of a diagram, how consumer surplus will be affected by the
introduction of an indirect tax. [8]
(b) Discuss whether the introduction of maximum prices by a government would solve the
problem of scarcity? [12]

Question #4
(a) Explain the difference between public goods and private goods. Consider why profit can be
made through the supply of one type of good, but not the other. [8]
(b) Discuss the view that inflation is always a major problem. [12]

Question # 5
(a) Explain what may cause a country’s terms of trade to change. [8]
(b) Discuss whether a worsening in a country’s terms of trade will cause a worsening of its
balance of trade. [12]
Question # 6
(a) Distinguish between monetary policy and fiscal policy. [12]
(b) Discuss how monetary policy might be used by a government in a time of inflation.
[13]