Section A
Q11 mark
1 Which one of the following is a characteristic of symmetric information?
- ABuyers have more information than sellers
- BSellers have more information than buyers
- CBuyers and sellers have the same level of information
- DBuyers and sellers experience market failure
Show the answer
The answer is C.
TopicMarket failure: public goods, information and immobility
Q21 mark
Sea defences are an example of which one of the following?
- AConsumer goods
- BFree goods
- CPrivate goods
- DPublic goods
Show the answer
The answer is D.
TopicThe nature of economics
Q31 mark
Which one of the following can be deduced from this information?
- APepsi Cola and Coca-Cola are complements
- BPepsi Cola and Coca-Cola are substitutes
- CPepsi Cola and Coca-Cola are unrelated goods
- DPepsi Cola and Coca-Cola are normal goods
Show the answer
The answer is B.
TopicDemand, supply and market equilibrium
Q41 mark
Which one of the following can be deduced from this information?
- AThe Government will spend GHKJ
- BThe Government will spend EFG
- CThe Government will spend GHI
- DThe Government will spend EHK0
Show the answer
The answer is A.
TopicGovernment intervention and government failure
Q51 mark
Which one of the following can be deduced from the chart?
- AElectricity is mostly generated from non-renewable resources
- BElectricity is mostly generated from renewable resources
- C21% of electricity is generated using renewable resources
- D79% of electricity is generated using non-renewable resources
Show the answer
The answer is B.
TopicThe nature of economics
Q61 mark
Which one of the following can be deduced from the diagram?
- AThe movement from Z to Y is obtainable using currently available resources
- BThe movement from Z to X has an opportunity cost in terms of consumer goods
- CThe movement from V to W results in a decrease in unemployment
- DThe movement from X to W results in an increase in efficiency
Show the answer
The answer is C.
TopicThe nature of economics
Section B
Q7Draw4 marks
Draw a diagram to illustrate these external benefits.
Mark splitKnowledge 1Application 3
TopicMarket failure: externalities
Q8Explain4 marks
With reference to this information, explain what is meant by the term 'rational decision making'.
Mark splitKnowledge 2Application 2
TopicBehavioural economics and consumer choice
Q9Explain4 marks
With reference to Zimbabwe, explain the difference between a 'specific tax' and an 'ad valorem tax'.
Mark splitKnowledge 2Application 2
TopicGovernment intervention and government failure
Q10Calculate4 marks
Ceteris paribus, calculate the price elasticity of supply for olive oil. Show your workings.
Mark splitKnowledge 1Application 3
TopicElasticities of demand and supply
Q11Explain4 marks
Ceteris paribus, explain the likely impact of this change in production costs on producer surplus in the electric vehicle market. Illustrate your answer with a supply and demand diagram.
Mark splitKnowledge 1Application 1Analysis 2
TopicThe nature of economics
Section C
Case study
The markets for chicken and 'junk food'
Extracts: Figure 1 · Figure 2 · Extract A: The global price of chicken · Extract B: 'Junk food' consumption · Figure 1: adapted from: https://www.indexmundi.com/commodities/?commodity=chicken&months=60 · Figure 2: adapted from: 'Impact of population age structure on food consumption structure of residents in Beijing', Lingyun
In the extracts: Jan Mar May Jul, Sep Nov Jan Mar, Jul Sep Nov, Economic Impact, Health Organization, Lingyun Duan, Wei Chen, Wen Yu, WHO, Junk
Q12(a)Define2 marks
Define the term 'price elasticity of demand'. (Figure 2)
Mark splitKnowledge 2
TopicElasticities of demand and supply
Q12(b)Explain4 marks
Between 2020 and 2021 real incomes increased by 6.8% in Beijing. With reference to Figure 2, explain whether chicken is a normal good or an inferior good.
Mark splitKnowledge 2Application 2
TopicElasticities of demand and supply
Q12(c)Analyse6 marks
With reference to Figure 1 and the first paragraph of Extract A, analyse one demand reason and one supply reason why the price of chicken increased by 147% between May 2020 and May 2022. Illustrate your answer with a supply and demand diagram.
Mark splitKnowledge 2Application 2Analysis 2
TopicDemand, supply and market equilibrium
Q12(d)Examine8 marks
With reference to the second and third paragraphs of Extract A, examine two external costs associated with chicken production.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicMarket failure: externalities
Q12(e)Discuss14 marks
With reference to Extract B and your own knowledge, discuss the impact of the introduction of an indirect tax on 'junk food'. Illustrate your answer with an appropriate diagram.
Mark splitEvaluation 6
TopicElasticities of demand and supply
Section D
Q13OptionalEvaluate20 marks
Evaluate the microeconomic effects of an increase in the number of natural disasters. Include at least one appropriate diagram in your answer.
Mark splitEvaluation 8
TopicMoney and financial markets
Q14OptionalEvaluate20 marks
Evaluate the microeconomic effects of subsidies paid to electric vehicle manufacturers. Include at least one appropriate diagram in your answer.
Mark splitEvaluation 8
TopicGovernment intervention and government failure
