Section A
Q11 mark
1 Which one of the following has an opportunity cost of zero?
- AAn economic good
- BA free good
- CA public good
- DA capital good
Show the answer
The answer is B.
TopicThe nature of economics
Q21 mark
Which one of the following is the likely result of supplying this number of permits?
- AThe market price of permits will decrease
- BThe market price of permits will increase
- CAirline companies will leave the market as a result of increased costs
- DAirline companies will have more incentive to invest in cleaner technology
Show the answer
The answer is A.
TopicMarket failure: externalities
Q31 mark
Which one of the following can be deduced from this information?
- ACoffee and milk are inferior goods
- BCoffee and milk are substitute goods
- CCoffee and milk are unrelated goods
- DCoffee and milk are complementary goods
Show the answer
The answer is D.
TopicDemand, supply and market equilibrium
Q41 mark
4 The diagram shows the demand curve for bottled energy drinks. Price per bottle of D energy drink C B Demand
- AQuantity of energy drinks Which one of the following points has the value of -1 for price elasticity of demand? A
- B
- C
- D
Show the answer
The answer is C.
TopicElasticities of demand and supply
Q51 mark
Which one of the following can be deduced from the table?
- AMost electricity was generated by renewable resources in 2010 and by non-renewable resources in 2021
- BMost electricity was generated by non-renewable resources in 2010 and by renewable resources in 2021
- CIn 2010 66.1% of electricity was generated using renewable resources
- DIn 2021 81.4% of electricity was generated using non-renewable resources
Show the answer
The answer is B.
TopicThe nature of economics
Q61 mark
Ceteris paribus, which one of the following can be deduced from this information?
- AThe supply of new houses would decrease by 5.88%
- BThe supply of new houses would increase by 5.88%
- CThe supply of new houses would increase by 1.33%
- DThe supply of new houses would decrease by 1.33%
Show the answer
The answer is A.
TopicThe nature of economics
Section B
Q7Draw4 marks
With reference to the house rental market in Brisbane, draw a diagram to illustrate the introduction of a maximum price for renting a house.
Mark splitKnowledge 1Application 3
TopicGovernment intervention and government failure
Q8Explain4 marks
With reference to hotel breakfasts, explain why the above information illustrates 'diminishing marginal utility'.
Mark splitKnowledge 1Application 1Analysis 2
TopicBehavioural economics and consumer choice
Q9Explain4 marks
With reference to lighthouses, explain the difference between 'non-rivalry' and 'non-excludability'.
Mark splitKnowledge 2Application 2
TopicMarket failure: public goods, information and immobility
Q10Calculate4 marks
Ceteris paribus, calculate the income elasticity of demand for new cars. Show your workings.
Mark splitKnowledge 1Application 3
TopicElasticities of demand and supply
Q11Explain4 marks
Ceteris paribus, explain the likely impact of this change in supply on consumer surplus in the tomato market. Illustrate your answer with a supply and demand diagram.
Mark splitKnowledge 1Application 1Analysis 2
TopicThe nature of economics
Section C
Case study
The market for rice
Extracts: Figure 1: : Index of the world price for rice, July 2022 to July 2023 (July 2016 = 100) · Extract A: Rice price rising · Figure 2: : Estimated price elasticities of demand in Japan for selected food groups · Extract B: The impact of rice production · Extract C: Indian Government intervention in the market for rice · Figure 1: adapted from:
In the extracts: De No Ja Ju, Au Fe Se, Rice, Africa, Asia, Index, Indian, USA, Estimated, Europe
Q12(a)Define2 marks
Define the term 'capital goods'. (Extract C, line 5)
Mark splitKnowledge 2
TopicThe nature of economics
Q12(b)Analyse6 marks
With reference to Figure 1 and Extract A, analyse two reasons why the price of rice increased between July 2022 and July 2023. Illustrate your answer with a supply and demand diagram.
Mark splitKnowledge 2Application 2Analysis 2
TopicDemand, supply and market equilibrium
Q12(c)Explain4 marks
With reference to Figure 2, explain whether demand for each of the four selected food groups is price elastic or price inelastic.
Mark splitKnowledge 2Application 2
TopicElasticities of demand and supply
Q12(d)Examine8 marks
With reference to Extract B, examine two external costs associated with rice production.
Mark splitKnowledge 2Application 2Analysis 2Evaluation 2
TopicMarket failure: externalities
Q12(e)Discuss14 marks
With reference to Extract C, discuss the benefits of subsidies paid to rice growers. Illustrate your answer with an appropriate diagram.
Mark splitEvaluation 6
TopicGovernment intervention and government failure
Section D
Q13OptionalEvaluate20 marks
Evaluate possible factors that could cause a rightward shift of a country's production possibility frontier. Include at least one relevant diagram in your answer.
Mark splitEvaluation 8
TopicThe nature of economics
Q14OptionalEvaluate20 marks
Evaluate the likely impact of imposing indirect taxes on aeroplane flights to reduce carbon emissions. Include at least one relevant diagram in your answer.
Mark splitEvaluation 8
TopicMarket failure: externalities
