0455 Economics June 2025 Question Paper 11

increasing entry requirements to professions

capital and labour

O manufactured goods agricultural goods W Z X Y A government decides to encourage more production of manufactured goods instead of agricultural goods. Which movement shows this policy change? Z to X

Demand for food to be consumed at home would rise.

quantity of peaches traded price of peaches fall fall

price P Q quantity O D2 D1 S2 S1 S

quantity demanded price $For which fall in price is the demand price-inelastic? from$6 to $5

Coffee plants take several years to grow.

people should have equal living standards

borrowing saving decrease decrease

A bus driver initially works longer hours if the wage rate increases. As his earnings increase, there reaches a point when he prefers more leisure than extra work. Which supply curve, S, represents this situation? 12 A O wage rate wage rate wage rate wage rate worker hours B O worker hours C O worker hours D O worker hours S S S S

to negotiate workers’ contracts

external diseconomies of scale

interest rates

W X Y Z output cost $ AFC ATC Which statement is correct? At output X, average variable costs are lower than average fixed costs.

high external costs

equality between social cost and social benefit

government expenditure or taxes

decreasing government spending on school buildings

an increase in corporation tax rates

actively seeking work immediately available for work eligible for unemployment benefits yes no no

consumer confidence

weight % price change over 1 year item 0.30 +5 food

The table shows the Human Development Index (HDI) value for a country in two years. HDI value year 0.467 0.609 What would not explain the change in the HDI value? an increase in gender equality

2nd statistic 1st statistic net immigration birth rate

A computer manufacturer takes over an advertising company.

foreign firms exporting waste products

price of yuan (in US dollars) P1 S

year 2 ($m) year 1 ($m) item −30 −20 −30 ? ? +10 −50 balance of goods and services net primary income net secondary income balance of current account How did the value of net secondary income change between year 1 and year 2? decreased by $10m