0455 Economics March 2025 Question paper 12

an airport

external cost

The diagram shows an initial production possibility curve of PPC1. O consumer goods capital goods PPC2 PPC1 What is likely to have caused the movement of the production possibility curve PPC1 to PPC2? a decline in non-renewable resources

a fall in the cost of growing wheat

whether all income groups receive the output

price quantity X

demand will fall by 20%

consumers decide whether production is labour-intensive or capital-intensive

the cost of building the road

accepting deposits

wage rate hours worked

employers

when diseconomies of scale occur at low levels of output

600%

costs ($000) output 100 What is the firm’s total variable cost at an output of 100 units?$30000

average revenue ($) output What happens to total revenue as output rises? Total revenue falls and then rises.

a forecast of government spending and revenue for the following financial year

exchange rate policy

It creates disincentives for wage earners.

year 2 employment (m) year 1 employment (m) economic sector education engineering farming finance healthcare motor vehicle production oil extraction What can be concluded from the information? Less output was produced in the economy in year 2 than year 1.

controlling firms locating in areas of low employment

allowing workers time off to attend retraining courses

year 2 year 1 CPI category 200 100 clothing 300 400 food 100 100 energy 100 200 household goods 300 200 motoring 1000 1000 total What can be concluded from the table when comparing year 1 and year 2? Real income spent by the average consumer on motoring increased.

HDI value country 0.90 X 0.45 Y What might explain the difference in the HDI values? Country X has double the inflation rate of country Y.

generous state pensions

What can be concluded from the diagram? Men outnumber women in each year.

Oil is a non-renewable resource that could be exhausted quickly.

The price elasticity of demand for Chinese steel is –2.5.

raise interest rates

cutting government spending