Paper 2: AS Level Data Response and Essays · 9708/22

Cambridge International (CAIE) AS Paper 2, March 2025

All 13 written questions from Cambridge International (CAIE) AS Paper 2 (March 2025), AS Level Data Response and Essays. Case studies: A global olive oil shortage. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Cambridge removed part of the case study text from the public paper for copyright reasons.

Section A

Case study

A global olive oil shortage

In the extracts: Europe, Southern European, European Union, United States, Mediterranean, Foxweather, Ukraine, Spain

Q1(a)Calculate2 marks

Using Fig. 1.1, calculate the percentage change in the world price of olive oil between May 2022 and January 2023.

TopicThe interaction of demand and supply1.1 Scarcity, choice and opportunity cost2.2 Price elasticity, income elasticity and cross elasticity of demand

Question paper p.3 Mark scheme p.9 Examiner report p.3 Open in the tool

Q1(b)Explain2 marks

Some restaurants and commercial kitchens are using sunflower oil as an alternative to olive oil. Explain how economists could measure the impact of rising olive oil prices on the demand for sunflower oil.

TopicPrice elasticity, income elasticity and cross elasticity of demand

Question paper p.3 Mark scheme p.9 Examiner report p.3 Open in the tool

Q1(c)Consider4 marks

With reference to Fig. 1.2 and the help of a demand and supply diagram, consider the possible impact of increased olive oil prices in 2023 on consumer surplus.

TopicConsumer and producer surplus

Question paper p.3 Mark scheme p.9 Examiner report p.3 Open in the tool Draw it: supply and demand diagram

Q1(d)Assess6 marks

Assess the likely impact of increasing stocks of olive oil on the price and quantity of olive oil traded in the future.

TopicThe interaction of demand and supply1.1 Scarcity, choice and opportunity cost2.2 Price elasticity, income elasticity and cross elasticity of demand

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

Q1(e)Assess6 marks

Assess the extent to which a fall in the value of the US dollar against the euro is likely to affect US imports of olive oil from the EU.

TopicExchange rates1.1 Scarcity, choice and opportunity cost2.2 Price elasticity, income elasticity and cross elasticity of demand

Question paper p.3 Mark scheme p.11 Examiner report p.3 Open in the tool

Section B

Q2(a)OptionalExplain8 marks

With the help of a production possibility curve (PPC) diagram, explain the terms scarcity and choice and consider the extent to which every choice has an equal opportunity cost.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicScarcity, choice and opportunity cost1.5 Production possibility curves

Question paper p.4 Mark scheme p.12 Examiner report p.4 Open in the tool Draw it: PPF diagram

Q2(b)OptionalAssess12 marks

Assess whether the allocation of resources in a market economy is always beneficial.

TopicResource allocation in different economic systems

Question paper p.4 Mark scheme p.13 Examiner report p.4 Open in the tool

Q3(a)OptionalExplain8 marks

Explain the difference between a public good and a private good (economic good) and consider the extent to which a beach could be described as a public good.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicClassification of goods and services

Question paper p.4 Mark scheme p.14 Examiner report p.5 Open in the tool

Q3(b)OptionalAssess12 marks

Assess the extent to which a subsidy is likely to be the best method to increase the consumption of a merit good.

TopicMethods and effects of government intervention in markets

Question paper p.4 Mark scheme p.15 Examiner report p.5 Open in the tool Practise the subsidy diagram

Section C

Q4(a)OptionalExplain8 marks

With the help of a formula, explain two reasons for an improvement in the terms of trade and consider the extent to which an improvement in the terms of trade will benefit an economy.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicThe reasons for international trade

Question paper p.4 Mark scheme p.16 Examiner report p.5 Open in the tool

Q4(b)OptionalAssess12 marks

Assess the extent to which the consequences of free trade are always positive for an economy.

TopicThe reasons for international trade

Question paper p.4 Mark scheme p.17 Examiner report p.5 Open in the tool

Q5(a)OptionalExplain8 marks

With the help of an AD/AS diagram, explain what is meant by an expansionary fiscal policy and consider the extent to which an expansionary fiscal policy will always increase the level of aggregate demand.

Mark splitKnowledge 3Analysis 3Evaluation 2

TopicFiscal policy4.3 Aggregate demand and aggregate supply analysis

Question paper p.4 Mark scheme p.18 Examiner report p.5 Open in the tool Draw it: AD/AS diagram

Q5(b)OptionalAssess12 marks

Assess the extent to which supply-side policy is the best method to reduce the rate of inflation.

TopicSupply-side policy

Question paper p.4 Mark scheme p.19 Examiner report p.5 Open in the tool Practise the AD/AS diagram

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.

Section A

A global olive oil shortage

Section B

Section C

Other years of Cambridge International (CAIE) AS Paper 2

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