0455 Economics November 2024 Question Paper 12

For whom will we produce?

the allocation of resources in an economy

O good Y good X

a shortage of rice and a fall in its price

O quantity of coffee demanded per month price of coffee D1 D2 What would cause the demand for coffee to change from D1 to D2? a good coffee harvest

supply (units) price ($) 120 160 200 240 280 If the price changes from$12 to $14, what will be the change in supply? Supply will contract by 40 units and there will be a movement down along the supply curve.

quantity O price X Z S

greater than 1

the cost of importing construction materials

attempts to achieve price stability

change in quantity of labour supplied change in the equilibrium wage change in demand for labour extend decrease decrease

backward vertical

O costs output ATC2 ATC1 What would cause the shift from ATC1 to ATC2? difficulties in controlling the firm

expensive capital equipment costs

price ($) total revenue ($)

consumer choice may increase

nominal GDP rising at a faster rate than employment

the total quantity of foreign currency available within the economy

fiscal policy

It is an increase in the general level of prices over time.

a permanent decrease in the demand for labour

tax revenue $bn government expenditure$bn year 500 500 400 600 300 700 What might explain the changes in the government’s budget over the period? a fall in the dependency ratio

taxation government spending money supply decreasing decreasing decreasing

A greater percentage of workers in Switzerland work part-time than in Mexico.

net migration death rate birth rate 850 000 30 000 –300 000 4 500 000 Australia Brazil Nigeria US What can be concluded from the table? Only one country, Nigeria, had a decreasing population.

percentage of the labour force in the tertiary sector Human Development Index value GDP per head (US$) high high high

free trade

apply an embargo to this good

an alternative method of trade protection

$m exports of goods imports of goods key year Between which two years did the country have an increase in the value of imports and an improvement in its balance of trade in goods? 4 and 5