Paper 1: AS Level Multiple Choice · 9708/12

Cambridge International (CAIE) AS Paper 1, November 2023

All 30 multiple choice questions from Cambridge International (CAIE) AS Paper 1 (November 2023), AS Level Multiple Choice. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paperMark schemeExaminer report
Q11 mark
PPC is the production possibility curve in country T. Which changes take place in country T’s opportunity costs of producing X as it increases production of X?
  1. AOpportunity costs are constant between points 1 and 2, and between points 3 and 4.
  2. BOpportunity costs decrease between points 1 and 2, and increase between points 3 and 4.
  3. COpportunity costs decrease between points 1 and 2, and between points 3 and 4.
  4. DOpportunity costs increase between points 1 and 2, and between points 3 and 4.
Show the answer

The answer is D.

TopicProduction possibility curves1.1 Scarcity, choice and opportunity cost4.3 Aggregate demand and aggregate supply analysis

Question paper p.2Mark scheme p.2Examiner report p.3Open in the tool
Q51 mark
Rice and pasta are both basic foods in a country. How would a health scare concerning rice affect the market for pasta?
  1. AThere will be a shift of demand and a contraction of supply.
  2. BThere will be a shift of demand and an extension of supply.
  3. CThere will be a shift of supply and a contraction of demand.
  4. DThere will be a shift of supply and an extension of demand.
Show the answer

The answer is B.

TopicDemand and supply curves

Question paper p.3Mark scheme p.2Examiner report p.3Open in the tool
Q71 mark
A family is willing to pay a maximum of $600, $500 and $400 for air tickets for the mother, father and daughter to attend a wedding in another city. The airline announces a promotional air fare of $450 per ticket, provided at least three tickets are purchased. What will be the consumer surplus gained by the family if they use the promotional offer?
  1. A$100
  2. B$150
  3. C$200
  4. D$250
Show the answer

The answer is B.

TopicConsumer and producer surplus2.4 The interaction of demand and supply

Question paper p.3Mark scheme p.2Examiner report p.3Open in the tool
Q91 mark
In 2010, poor harvests reduced fruit crops and furniture producers gave big discounts on furniture products. How might these changes have affected the position of the supply curve for the products?
  1. Afruit: no change; furniture producers: shift to the left
  2. Bfruit: shift to the left; furniture producers: no change
  3. Cfruit: shift to the left; furniture producers: shift to the left
  4. Dfruit: shift to the right; furniture producers: no change
Show the answer

The answer is B.

TopicDemand and supply curves

Question paper p.4Mark scheme p.2Examiner report p.3Open in the tool
Q101 mark
In the diagram, D and S represent the demand for and supply of smartphones. Many components used in the production of smartphones are imported. The initial equilibrium is at point X. The exchange rate has depreciated at the same time as the price of a complementary good decreased. Which point in the diagram could represent the new equilibrium?
Show the answer

The answer is B. Open the question paper to read the options.

TopicThe interaction of demand and supply2.2 Price elasticity, income elasticity and cross elasticity of demand4.3 Aggregate demand and aggregate supply analysis

Question paper p.4Mark scheme p.2Examiner report p.3Open in the toolPractise the supply and demand diagramPractise the YED and XED diagram
Q111 mark
The diagrams show the demand for and the supply of houses. In the short run, the stock of houses for sale, S1, is fixed. A government decides to allow some agricultural land to be used for building houses and subsidises lower-income buyers of the new houses. Which diagram shows the long-run situation?
Show the answer

The answer is D. Open the question paper to read the options.

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

Question paper p.5Mark scheme p.2Examiner report p.3Open in the toolPractise the supply and demand diagramPractise the subsidy diagram
Q121 mark
The equation for the quantity demanded, QD, for a product is where P = price in $. The quantity supplied, QS, is given by QS = 100 + 40P. Which change will occur if the price rises from $5 to $6?
  1. AThe market will move from equilibrium to shortage.
  2. BThe market will move from equilibrium to surplus.
  3. CThe market will move from shortage to surplus.
  4. DThe market will move from surplus to shortage.
Show the answer

The answer is B.

TopicThe interaction of demand and supply2.1 Demand and supply curves

Question paper p.5Mark scheme p.2Examiner report p.3Open in the tool
Q131 mark
What is the most likely cause of the continuous increase in prices of famous paintings by now dead artists?
  1. Athe increasing technological ability to copy famous paintings perfectly
  2. Bthe popular view that famous paintings are an appreciating asset
  3. Cthe totally inelastic supply of famous paintings by dead artists
  4. Dthe wish of governments to treat art galleries as merit goods
Show the answer

The answer is B.

TopicPrice elasticity of supply6.4 Exchange rates1.6 Classification of goods and services

Question paper p.6Mark scheme p.2Examiner report p.3Open in the tool
Q161 mark
The government imposes a specific indirect tax of $1 on each unit of a good sold. How does the imposition of the tax shift the demand or supply curve of the good?
  1. AThe demand curve of the good will shift vertically downwards by $1.
  2. BThe demand curve of the good will shift vertically upwards by $1.
  3. CThe supply curve of the good will shift vertically downwards by $1.
  4. DThe supply curve of the good will shift vertically upwards by $1.
Show the answer

The answer is D.

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

Question paper p.6Mark scheme p.2Examiner report p.3Open in the tool
Q211 mark
Which combination is possible for an economy experiencing zero inflation?
  1. Aaverage nominal wages: falling; average real wages: falling
  2. Baverage nominal wages: falling; average real wages: rising
  3. Caverage nominal wages: rising; average real wages: falling
  4. Daverage nominal wages: unchanging; average real wages: rising
Show the answer

The answer is A.

TopicPrice stability

Question paper p.7Mark scheme p.2Examiner report p.3Open in the tool
Q231 mark
The diagram shows three production possibility curves (PPC) for a country, labelled 3, 2 and 1. The original PPC for the country is 2. This country experiences a fall in its working population and then this is followed by a long period of recession. If an increase in GDP then takes place, what is the increase in production?
  1. Ar to s
  2. Br to u
  3. Cs to t
  4. Dt to u
Show the answer

The answer is A.

TopicProduction possibility curves

Question paper p.8Mark scheme p.2Examiner report p.3Open in the toolPractise the PPF diagram
Q251 mark
A country’s current account deficit is larger this year than last. What is the most likely reason for this increase?
  1. ADemand for domestically produced goods has risen.
  2. BDomestic inflation has risen faster than the inflation of its major trading partners.
  3. CDomestic unemployment has risen.
  4. DThe exchange rate has depreciated.
Show the answer

The answer is B.

TopicCurrent account of the balance of payments4.6 Price stability6.4 Exchange rates

Question paper p.9Mark scheme p.2Examiner report p.3Open in the tool
Q261 mark
Which supply-side measure is most likely to produce short-run growth in a country’s aggregate supply?
  1. Aeasing of controls on immigration of workers
  2. Bexpenditure on primary education
  3. Cexpenditure on research and development
  4. Dprivatisation of public utilities
Show the answer

The answer is A.

TopicSupply-side policy4.3 Aggregate demand and aggregate supply analysis

Question paper p.9Mark scheme p.2Examiner report p.3Open in the tool
Q281 mark
A foreign government pays a UK university to educate its students. How would this be recorded on the balance of payments current account of the UK?
  1. Acurrent account component: secondary income; money flows: inflow
  2. Bcurrent account component: secondary income; money flows: outflow
  3. Ccurrent account component: trade in services; money flows: inflow
  4. Dcurrent account component: trade in services; money flows: outflow
Show the answer

The answer is C.

TopicCurrent account of the balance of payments

Question paper p.10Mark scheme p.2Examiner report p.3Open in the tool

Other years of Cambridge International (CAIE) AS Paper 1

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Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.