Economics

Explanation 1 mark

Calculate how much Corvania's government spent, in US dollars, in 2024.

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Explanation 2 marks

Identify two reasons why Corvania's government lifted the retirement age.

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Explanation 2 marks

Explain why some Corvanian workers move to Ardenia.

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Explanation 2 marks

Define 'tax'.

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Explanation 2 marks

Define 'price mechanism'.

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Explanation 2 marks

Identify two services that commercial banks offer their customers.

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Explanation 2 marks

Identify two causes of a rise in the quality of enterprise.

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Explanation 4 marks

Explain two reasons why a company may choose to produce in several countries.

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Explanation 4 marks

Draw a demand and supply diagram showing how the market for electricity is affected when households want to buy more air-conditioning units. (If yo...

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Explanation 4 marks

Explain two reasons why someone may be willing to take a job working outdoors in very hot weather.

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Explanation 4 marks

Explain how the price elasticity of demand for a product affects the total amount spent on it when its price changes.

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Explanation 4 marks

Explain two causes of an outward shift of a country's production possibility curve.

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Explanation 4 marks

Explain two reasons why the gap between rich and poor is narrower in Corvania than in Ardenia.

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Explanation 5 marks

Analyse the relationship between the number of nurses and life expectancy.

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Evaluation 6 marks

Discuss whether or not Corvania's consumers would gain if more of the country's markets became monopolies.

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Explanation 6 marks

Analyse what influences whether workers are able to obtain a pay rise.

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Explanation 6 marks

Analyse the advantages a car manufacturer may gain from specialising in making top-of-the-range electric cars.

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Explanation 6 marks

Analyse how falling productivity could affect the macroeconomic aims a government is pursuing.

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Explanation 6 marks

Analyse how a government could raise the value of its country's exports.

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Evaluation 6 marks

Discuss whether or not Corvania's low inflation rate would have been good for the Corvanian economy.

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Evaluation 8 marks

Discuss whether or not a rise in a country's real GDP lowers poverty.

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Evaluation 8 marks

Discuss whether or not it is a good idea for a government to subsidise local train services.

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Evaluation 8 marks

Discuss whether or not a government should shield every one of its country's industries from foreign competition.

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Evaluation 8 marks

Discuss whether or not a city would gain from having more people living in it.

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Explanation 1 mark

The extract states the share of Rendufi's population that is reached by an electricity supply. Work out how many Rendufians this represents.

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Explanation 1 mark

State one characteristic of a public good.

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Explanation 2 marks

The extract describes Veldhof as a multinational company. State what is meant by that term.

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Explanation 2 marks

Define a progressive tax.

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Explanation 2 marks

A central bank does not carry out the same role as the commercial banks it supervises. State two differences between the two types of bank.

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Explanation 2 marks

Cyclone Bara hit Rendufi in early 2024. Explain the effect that this event would be expected to have on the position of the country's production po...

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Explanation 2 marks

The extract notes that people in Vantoria are living longer than before. State two reasons why the average lifespan in a country may become longer.

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Explanation 2 marks

Capital goods are man-made resources that firms use to produce other goods and services. Name two examples of such goods that are mentioned in the ...

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Explanation 2 marks

Give two reasons why the birth rate may fall in a country.

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Explanation 2 marks

The extract reports that Tobwana's primary income is usually negative. State what the term primary income means.

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Explanation 2 marks

Define the private sector.

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Explanation 4 marks

Explain two reasons why coffee growers in Rendufi may be willing to supply more.

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Explanation 4 marks

Veldhof sells the same food products in the Netherlands and in the United States but does not set the same price in both. Explain two reasons why a...

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Explanation 4 marks

Explain two features of banknotes that allow them to carry out the functions of money.

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Explanation 4 marks

Explain two factors that determine the age structure of a country's population.

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Explanation 4 marks

Explain two methods a construction company in Vantoria could use to persuade qualified engineers living overseas to come and work for it.

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Explanation 4 marks

Doctors in Rendufi publish findings that drinking large amounts of coffee harms health. Describe the demand and supply diagram you would use to sho...

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Evaluation 5 marks

Using the data on selected countries, analyse how GDP per head is related to the proportion of children who finish primary school.

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Evaluation 6 marks

Analyse why poverty arises in a country such as Tobwana.

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Evaluation 6 marks

Analyse how commercial banks are of use to the households that bank with them.

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Evaluation 6 marks

Analyse how a rise in the spending of households could raise the rate of economic growth.

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Evaluation 6 marks

Economic agents must give something up whenever they choose. Analyse the part that opportunity cost plays in the choices made by each of three grou...

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Evaluation 6 marks

Discuss whether or not the Rendufian Government should act to prevent the rundu falling further against the US dollar.

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Evaluation 6 marks

Discuss whether or not Rendufi should build up an industry generating electricity from solar power.

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Evaluation 8 marks

Discuss whether or not raising tariffs on imported goods will cut a country's trade in goods deficit.

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Evaluation 8 marks

The packaged food market in one country is being entered by a growing number of new suppliers. Discuss whether or not shoppers are made better off ...

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Evaluation 8 marks

Discuss whether or not employees gain when their work is divided into specialised tasks.

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Evaluation 8 marks

Discuss whether or not the pay of workers in the construction industry is likely to rise over the next few years.

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Explanation 1 mark

Calculate the current account surplus of Sarvenia as a percentage of its GDP.

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Explanation 2 marks

Identify two items included in Sarvenia's trade in services.

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Explanation 2 marks

Explain the opportunity cost to Sarvenia of exporting its products.

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Explanation 2 marks

State what is meant by a fall in a country's inflation rate.

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Explanation 2 marks

Identify two disadvantages for a worker of having a job as a miner.

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Explanation 2 marks

Identify two features of an economic good.

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Explanation 2 marks

Define birth rate.

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Explanation 4 marks

Explain two reasons why the demand for bread may rise.

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Explanation 4 marks

Draw a demand and supply diagram to show the effect on the market for trainers of an increase in the indirect tax on trainers.

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Explanation 4 marks

Explain two possible benefits of a rise in a country's birth rate.

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Explanation 4 marks

Explain why a government's measure of unemployment may not be accurate.

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Explanation 4 marks

Explain two reasons why households may choose to keep their savings in a commercial bank.

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Explanation 4 marks

Explain two reasons why the standard of living may be high in Sarvenia.

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Explanation 5 marks

Analyse the relationship between the overall unemployment rate and the youth unemployment rate shown in Table 1.1.

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Evaluation 6 marks

Discuss whether or not building a new port will benefit an economy.

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Explanation 6 marks

Analyse why an MNC may decide to close a mine it operates in a host country.

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Explanation 6 marks

Analyse how a fall in the foreign exchange rate of a country's currency can cause inflation.

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Explanation 6 marks

Analyse how a firm could make the demand for its product more price-inelastic.

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Explanation 6 marks

Analyse the effects of charging an indirect tax on private sector school fees.

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Evaluation 6 marks

Discuss whether or not workers would gain from leaving the public sector to work in the private sector.

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Evaluation 8 marks

Discuss whether or not governments should stop workers from joining trade unions.

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Evaluation 8 marks

Discuss whether or not a cut in lending by banks will harm an economy.

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Evaluation 8 marks

Discuss whether or not the growth of a country's tertiary sector will increase its economic development.

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Evaluation 8 marks

Discuss whether or not a government should encourage clothing firms to merge.

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Explanation 1 mark

Using the data for 2023, calculate the value of output produced by Kestrel Isle's fund management sector.

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Explanation 2 marks

Identify two factors of production that have come into Kestrel Isle from abroad.

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Explanation 2 marks

Explain one of the government's macroeconomic aims that Kestrel Isle has met.

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Explanation 2 marks

Define 'inelastic supply'.

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Explanation 2 marks

Define 'multinational companies'.

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Explanation 2 marks

Identify two influences on the amount households save.

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Explanation 2 marks

Define 'productivity'.

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Explanation 4 marks

Explain how a central bank differs from a commercial bank.

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Explanation 4 marks

Draw a demand and supply diagram to show how cheaper electricity would affect the market for canned fish on Kestrel Isle.

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Explanation 4 marks

Explain two examples of market failure that could arise in Daevon.

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Explanation 4 marks

Explain two types of unemployment that Lastovia might experience.

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Explanation 4 marks

Explain how expansion of the primary sector can help Marandu's economic development.

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Explanation 4 marks

Explain how fiscal policy differs from monetary policy, as they affect Kestrel Isle.

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Explanation 5 marks

Analyse the relationship between the share of electricity produced from renewable sources and life expectancy.

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Evaluation 6 marks

Discuss whether or not businesses should choose to invest in Kestrel Isle.

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Explanation 6 marks

Analyse how belonging to a trade union can affect workers in Lastovia.

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Explanation 6 marks

Analyse what could cause the sales of a product to rise.

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Explanation 6 marks

Analyse how supply-side policy measures could help the government achieve its macroeconomic aims.

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Explanation 6 marks

Analyse how a rise in interest rates can affect firms in Corvania.

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Evaluation 6 marks

Discuss whether or not the higher government spending on the ferry harbour will benefit Kestrel Isle's economy.

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Evaluation 8 marks

Discuss whether or not technological advances benefit workers.

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Evaluation 8 marks

Discuss whether or not giving subsidies to farmers benefits an economy.

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Evaluation 8 marks

Discuss whether or not firms gain from international trade.

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Evaluation 8 marks

Discuss whether or not an economy gains when the foreign exchange rate of its currency falls.

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Explanation 1 mark

Calculate, in percentage points, the amount by which Norlandia's 2024 inflation rate was above the target set for it.

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Explanation 2 marks

Identify two measures of a microeconomic kind that Norlandia relies on to hold its price level steady.

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Explanation 2 marks

Define price elasticity of demand.

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Explanation 2 marks

Define specialisation.

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Explanation 2 marks

Give two functions of money.

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Explanation 2 marks

Explain one drawback for Norlandia of leaning too heavily on customers and suppliers based in other countries.

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Explanation 2 marks

Apart from the extraction of natural gas, identify two industries that belong to the primary sector.

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Explanation 2 marks

Identify two tools of fiscal policy that Kaminaki's authorities could reach for when trying to lift demand.

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Explanation 2 marks

Identify two things other than pay that might persuade extra workers to take jobs on Cala Verde.

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Explanation 2 marks

Identify two gains a worker might expect from taking registered employment instead of working in the informal economy.

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Explanation 4 marks

Explain two ways in which the people of a country may be affected when its economy grows.

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Explanation 4 marks

Explain the ways in which being out of work can push a household into poverty.

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Explanation 4 marks

Explain two things that can affect how productive an economy is.

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Explanation 4 marks

Explain two factors that can bring about a rise in a country's total output.

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Explanation 4 marks

Norlandia pays a subsidy to firms that generate wind power. Describe the demand and supply diagram you would use to show what this subsidy does to ...

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Explanation 4 marks

Explain two reasons why Norlandia's balance of payments current account showed a surplus.

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Evaluation 5 marks

Analyse, using the figure, how movements in the krona's exchange rate are related to changes in world output growth.

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Explanation 6 marks

Analyse how rules laid down in law by a government can cut the level of market failure in an economy.

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Evaluation 6 marks

Analyse what determines how easily workers can move between occupations and between areas.

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Evaluation 6 marks

Discuss whether or not a rise in interest rates will damage Norlandia's economy.

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Evaluation 6 marks

Discuss whether or not the merger of the two banks will benefit consumers and workers in Norlandia.

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Evaluation 6 marks

Analyse the reasons that can push the price of housing upwards in a market.

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Evaluation 6 marks

Analyse why a central bank matters to the working of a national economy.

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Evaluation 8 marks

Discuss whether a rise in the amount a government spends on education is likely to bring about economic development.

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Evaluation 8 marks

Discuss whether keeping rates of tax low brings net benefits to a country.

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Evaluation 8 marks

Discuss whether a country is better off when the count of firms trading in its markets goes up.

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Evaluation 8 marks

Discuss whether a sustained fall in the general price level should be treated as harmful to a country.

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Explanation 1 mark

Using the 2023 data given for Veltoria, work out what share of its labour force was made up of workers born abroad. Give your answer as a percentage.

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Explanation 2 marks

Define price elasticity of supply.

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Explanation 2 marks

Give two functions of a trade union.

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Explanation 2 marks

From the information given, identify two reasons that help to explain why the average age of Veltoria's population is high.

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Explanation 2 marks

Explain one reason why a number of younger Veltorians choose to leave the country and settle in Canova, Australia or New Zora.

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Explanation 2 marks

A number of Marovia's markets are said to have settled at equilibrium. Define market equilibrium.

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Explanation 2 marks

The merged furniture business expects its average total cost to fall. Define average total cost.

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Explanation 2 marks

Identify two measures that Rendovia's central bank might take in order to keep the general price level stable.

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Explanation 2 marks

A producer sometimes sells part of its output in an overseas market at a price below the cost of making it. Identify two reasons why a producer mig...

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Explanation 2 marks

Define exchange rate.

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Explanation 4 marks

Veltoria's population is shrinking. Describe the demand and supply diagram you would use to show the effect of this on the market for household app...

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Explanation 4 marks

Explain how a firm's profits might be affected if it switches to raw materials from renewable sources.

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Explanation 4 marks

Explain two ways in which an economy gains when full employment is achieved.

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Explanation 4 marks

Explain two ways in which Veltoria could make itself more attractive to foreign workers.

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Explanation 4 marks

Explain two ways in which monetary policy is different from supply-side policy.

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Explanation 4 marks

Explain two ways in which an economy might move to a production point that lies beyond its existing production possibility curve.

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Evaluation 5 marks

Analyse, using the table, how world GDP per head and world air passenger numbers are related.

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Explanation 6 marks

Analyse how paying a subsidy to a newly established industry could shield that industry from producers based in other countries.

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Evaluation 6 marks

Analyse how a rise in government spending on building a new railway network could lower unemployment.

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Evaluation 6 marks

Analyse the ways in which a firm's decision about what price to charge may be affected by the price elasticity of demand for its product.

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Evaluation 6 marks

Discuss whether or not Veltoria is likely to gain from its high rate of saving.

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Evaluation 6 marks

Discuss whether or not Veltoria's workers are likely to become more mobile in the years ahead.

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Evaluation 6 marks

Analyse the internal economies of scale a large furniture manufacturer could gain as it grows.

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Evaluation 8 marks

Discuss whether or not luxury furniture, such as sofas, ought to carry a higher rate of indirect tax than food.

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Evaluation 8 marks

Discuss whether or not a country that achieves faster economic growth will always see a rise in its Human Development Index (HDI).

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Evaluation 8 marks

A government is thinking about lowering its rates of taxation. Discuss whether this would be likely to shrink the shortfall on the current account ...

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Evaluation 8 marks

Discuss whether or not a firm gains when its workers receive training.

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