9708 Economics June 2025 Question Paper 11

It will help raise life expectancy.

100 capital goods consumer goods country X country Y What can be concluded from the diagram? Both countries have decreasing opportunity cost in the production of consumer goods.

hospitals

low-income countries high-income countries lower costs of production availability of specialists in research and development

Consumers are dissatisfied with the performance of state-run services.

to act as a signal to firms when allocating resources

O

Alternative supplies can be flown in from foreign producers.

O S2 S1 P1 Q1 Q2 P2

O price S

interest received

Consumers switch to cheaper brands of soft drink with a high sugar content.

surplus minimum shortage maximum

price quantity O P3 P2 P1 Q1 Q2 S

a household moving savings from one bank account to another

Nominal GDP rising faster than nominal income.

current account balance budget balance $50m deficit$100m deficit

cyclical

The long-run aggregate supply curve can be downward sloping.

$1.32

a rise in import tariffs on manufactured goods

an increasing trend towards bartering of goods

unemployment price level real GDP falling rising falling

a reduction in government spending on training

tax paid on annual income of $40000 tax paid on annual income of$20000 tax paid on annual income of $10000 1000 1000 1000

It cannot be calculated accurately enough.

It is a complete ban on imports.

a lowering of the level of import duties

secondary income primary income income from profits earned abroad government transfers

Sept June £1 = $1.32 £1 =$1.38 What is likely to be the short-term impact of the change in the value of UK sterling on the UK economy? increased disinflation