9708 Economics November 2025 Question Paper 11

Indirect taxes are cheap to collect.

Gini coefficient value for the country number of demerit goods in the country 0.4 many

O capital goods consumer goods Why is the production possibility curve drawn concave to the origin? Capital goods are a more labour-intensive output than consumer goods.

A ferry that takes members of the public across a river.

subsidy received by producers level of imperfect information among consumers yes high

when ceteris paribus no longer applies

O price quantity What is an accurate description of the curve? a perfectly elastic demand curve

When income rises less of the good is bought.

total expenditure ($) price ($) period 96000 40000 64000 80000 32000

What can be deduced from this data? The good has constant opportunity cost.

expenditure ($billions) health education total economic welfare If the government has$60 billion of its budget to allocate between health and education services, which allocation will give its citizens the highest level of welfare? education spending ($billions) health spending ($ billions)

a shift to the left in the demand curve and a rise in equilibrium quantity

annual income

to benefit poorer consumers

S1 S2 O U V W X Y Z price quantity

$bn 600 gross domestic product at market prices 100 indirect taxes subsidies What is the value of gross domestic product at basic prices?$700bn

Real GDP fell by approximately 5%.

computers for classrooms

increasing expenditure by firms on skills training programmes for unskilled workers

a decrease in the exchange rate

AD AS O general price level Y1 national income

economic growth

When household spending is inelastic in response to interest rate changes.

monetary fiscal supply-side key exp con con

unemployment rate inflation rate high high

There would be a decrease in structural unemployment.

fell by 10

the movement of factors of production between countries

income earned outside the country that is transferred into the country

depreciating the exchange rate