Cambridge International (CAIE) AS Paper 1, June 2023

1. Acapital
2. Benterprise
3. Clabour
4. Dland

TopicFactors of production

1. Aan increase in worker immigration
2. Ban increase in the retirement age
3. Can increase in labour productivity
4. Dan increase in the school leaving age

TopicProduction possibility curves

1. AThe government has no role in setting prices.
2. BThe government manages taxation rights.
3. CThe government prevents firms from earning excessive profits.
4. DThe government provides services not provided by the private sector.

TopicResource allocation in different economic systems

1. Aa decrease in average costs
2. Ban increase in motivation
3. Can increase in productivity
4. Dan improvement in quality of the final product

TopicFactors of production

1. AA price fall can show consumers that a good is becoming less popular.
2. BA price fall tends to persuade some producers not to stay in the market for the good.
3. CA price rise means consumers cannot afford to buy so much of a good.
4. DA price rise tends to reduce competitiveness in the market for a good.

TopicThe interaction of demand and supply1.4 Resource allocation in different economic systems

1. Abarley and cotton
2. Bgold and silver
3. Csoap and toothpaste
4. Dspinach and cabbage

TopicPrice elasticity, income elasticity and cross elasticity of demand

1. AIn Britain, oil has zero opportunity cost.
2. BIn Japan, there is self-sufficiency in oil.
3. CIn Russia, there is no shortage of oil.
4. DIn the United States, rationing is the only solution to oil shortage.

TopicThe interaction of demand and supply

1. Afrom (cents): 20; to (cents): 21
2. Bfrom (cents): 30; to (cents): 33
3. Cfrom (cents): 40; to (cents): 45
4. Dfrom (cents): 50; to (cents): 60

TopicPrice elasticity, income elasticity and cross elasticity of demand

1. Anature of good: inferior; price change: fall
2. Bnature of good: inferior; price change: rise
3. Cnature of good: normal; price change: fall
4. Dnature of good: normal; price change: rise

TopicDemand and supply curves

1. AORWY
2. BPQUT
3. CPRWT
4. DQRWU

TopicMethods and effects of government intervention in markets2.1 Demand and supply curves

1. APES is greater than unity at all points along the supply curve.
2. BPES is the same at all points along the supply curve.
3. CPES is elastic when the price is low and becomes more inelastic when the price rises.
4. DPES rises when the supply rises.

TopicPrice elasticity of supply

TopicThe interaction of demand and supply

1. Awhen a decrease in the demand for a product leads to a price fall that results in some producers leaving the market
2. Bwhen a decrease in the demand for a product leads to some producers being unable to sell products at the current price
3. Cwhen a decrease in the supply of a product leads to a price rise that results in the market for the product clearing
4. Dwhen a decrease in the supply of a product leads to a price rise that makes it too expensive

TopicThe interaction of demand and supply

1. A–1
2. B–0.5
3. Czero
4. Dinfinity

TopicPrice elasticity, income elasticity and cross elasticity of demand

1. AW, Y and Z
2. BW and Z only
3. CW only
4. DZ only

TopicPrice elasticity, income elasticity and cross elasticity of demand

1. Asetting an effective maximum price on the product and paying producers a subsidy
2. Bsetting an effective maximum price on the product and imposing an indirect tax on producers
3. Csetting an effective minimum price on the product and paying producers a subsidy
4. Dsetting an effective minimum price on the product and imposing an indirect tax on producers

TopicMethods and effects of government intervention in markets

1. AExported services were valued at over US$477 428.
2. BImported goods were valued at over US$1 632 639.
3. CThe value of exported services was less than the value of exported goods.
4. DThere was an overall current account deficit.

TopicCurrent account of the balance of payments

1. Athe nominal income level
2. Bthe price level
3. Cthe unemployment level
4. Dthe wage level

TopicAggregate demand and aggregate supply analysis

1. ADomestic interest rates will tend to fall.
2. BImports become more price competitive.
3. CReal incomes fall.
4. DThe purchasing power of savings falls.

TopicAggregate demand and aggregate supply analysis4.6 Price stability

1. Aexchange rates
2. Bchanges in the price level
3. Cinterest rates
4. Dtaxation

TopicNational income statistics

1. AConsumer expenditure flows anticlockwise.
2. BGoods and services flow clockwise.
3. CIncomes flow anticlockwise.
4. DResources flow anticlockwise.

TopicIntroduction to the circular flow of income

1. Atype of unemployment: technological; possible solution: introduce minimum wage legislation
2. Btype of unemployment: cyclical; possible solution: raise government spending
3. Ctype of unemployment: frictional; possible solution: increase advertising of job vacancies
4. Dtype of unemployment: structural; possible solution: retrain workers

TopicUnemployment

1. Aa decrease in tariffs on imports: no; a devaluation of the exchange rate: yes; an expansionary monetary policy: no
2. Ba decrease in tariffs on imports: no; a devaluation of the exchange rate: no; an expansionary monetary policy: yes
3. Ca decrease in tariffs on imports: yes; a devaluation of the exchange rate: no; an expansionary monetary policy: yes
4. Da decrease in tariffs on imports: yes; a devaluation of the exchange rate: yes; an expansionary monetary policy: no

TopicPolicies to correct imbalances in the current account6.3 Current account of the balance of payments

1. Acompanies that export the majority of their output: yes; fixed income earners: yes; those with high debts: no
2. Bcompanies that export the majority of their output: no; fixed income earners: yes; those with high debts: yes
3. Ccompanies that export the majority of their output: yes; fixed income earners: no; those with high debts: no
4. Dcompanies that export the majority of their output: no; fixed income earners: no; those with high debts: yes

TopicPrice stability

1. A1, 2 and 3
2. B1 and 2 only
3. C1 and 3 only
4. D2 and 3 only

TopicThe reasons for international trade

1. AIt will fall by 5 units.
2. BIt will fall by 30 units.
3. CIt will rise by 5 units.
4. DIt will rise by 30 units.

TopicThe reasons for international trade1.5 Production possibility curves

1. Aa fall in investment and a fall in inflation
2. Ba fall in investment and a rise in inflation
3. Ca rise in investment and a fall in inflation
4. Da rise in investment and a rise in inflation

TopicMonetary policy

1. Aan increase in subsidies to exporters
2. Ban increase in the tariffs on imports
3. Ca reduction in the number of migrant workers allowed into the country
4. Da reduction in overseas aid donations

TopicCurrent account of the balance of payments

1. Aallowing trade unions to maintain work practices irrespective of productivity
2. Bencouraging workers to work extra hours for extra pay
3. Cincreasing total labour supply by employing more unskilled workers
4. Dsupporting the replacement of labour-manned machines by the use of robots

TopicSupply-side policy4.6 Price stability

1. Aa change in technology that maintains the same level of output
2. Ban increase in economic efficiency through higher productivity of factor inputs
3. Ca policy of progressive taxation to reduce inequalities
4. Da rise in the size of the working population due to immigration

TopicEconomic growth4.1 National income statistics