Learn Extracted exam questions A-Level Economics 9708 Economics November 2025 Question Paper 31
9708 Economics November 2025 Question Paper 31
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a manager of a business makes decisions on behalf of the owner
O costs output LRAC X Y Why might the newly merged firm be able to produce at point Y? The new airline can negotiate discounts when buying fuel.
cost, revenue quantity O AR AC MC MR Q1 Q2 What will be the result? total revenue total profit increased increased
an increase in the marginal utility of good Y
offering bulk-buy discounts to customers who join a loyalty scheme
MSC S = MPC D = MPB = MSB O P1 P2 Q2 Q1 price quantity V W X Y Identify the correct combination of the result of the market failure and the area on the diagram that shows deadweight welfare loss. area showing deadweight welfare loss result of market failure VWX overproduction
O cost, revenue $ W X Y Z MR MC AC AR quantity The firm changes its objective from revenue maximisation to sales maximisation. What will be the effect on quantity produced? it will decrease from Y to W
O price quantity
guaranteed minimum prices for farmers producing certain agricultural products
legal minimum wage
insisting that all fish caught are sold to local people
O MCL MRPL = DL NMW SL Q1 Q2 Q3 W3 W2 W1 labour employed wage rate T U R V S What is the effect of the NMW on the deadweight welfare loss in this market? It falls from RST to UVT.
firms cannot sell any surplus permits
It suggests changes in liquidity preference lead to proportional changes in the price level.
a liquidity trap below which interest rates are ineffective
adopting a supply-side policy to retrain unskilled workers
O
increase in the supply of unskilled labour
the price level the level of unemployment decreases decreases
The multiplier has a small value.
an increase in interest rates on loans for house purchases
a high marginal propensity to save
O price level national income AD1 AS1 AS0 AS2 AD0 AD2 E
the Gini coefficient initially falls as countries develop from low to high income levels
The current account consists of transactions in goods, services, investment income and remittances between countries.
A firm that avoids paying indirect taxes.
Countries have the same currency.
to ensure that exchange rate systems are working efficiently
financial account current account improves improves
Exchange rates will be less volatile which encourages international investment.