0455 Economics November 2024 Question paper 11

air

second factor first factor land capital

capital goods O consumer goods X Y Which cost can be determined as the economy moves along its PPC from point X to point Y? the opportunity cost of producing more capital goods

a government finance minister

all resources used to produce consumer goods

price quantity

quantity supplied price ($) What is the price elasticity of supply of the good as the price increases from$5 to $10? +2.0

The government always provides goods more cheaply than private firms.

for bus passengers for motorists decrease decrease

medium of exchange

demand for bus travel national minimum wage (per year) $ increasing 15 000

What is meant by internal diseconomies of scale?

average cost for the firm decreases when the output of the firm increases

fixed costs as a percentage of total cost

electricity

The firm is allocating a proportion of profit to other business objectives.

balance of payments equilibrium

year 2 $bn year 1$bn revenue spending What does the forecast government budget for year 2 show? The budget deficit decreased when compared with year 1.

The graph shows the impact of a tax on the supply of petrol (gas). 19 D quantity S2 S1 price O What can be concluded from this graph? The government will receive no tax revenue. A The impact of the tax will be shared between the consumer and the producer. B The impact of the tax will fall entirely upon the consumer. C The impact of the tax will fall entirely on the producer. D

What is most likely to result from a successful supply-side policy? a deterioration in the current account of the balance of payments

year 2 year 1 −1 rate of unemployment (%) rate of real GDP growth (%) Which combination of policy measures would be most effective in returning the economy to the year 1 level of activity? a decrease in direct taxes and an increase in the rate of interest

year 2 (millions) year 1 (millions) total labour force employed workers long-term unemployed employment in manufacturing employment in services According to the table, what is the most likely type of unemployment in year 2? cyclical

consumer prices (% change) earnings (% change) +9.5 +12.5

percentage of GDP received by each 20% of households lowest 20% second lowest 20% middle 20% second highest 20% highest 20% 8.9 14.3 18.0 22.4 36.4 Belgium 5.4 9.4 13.5 20.0 51.7 Mexico 5.1 10.3 15.3 22.4 46.9 US What can be concluded from the table?

a contractionary fiscal policy

labour

decreased prices and better quality

increased access to modern technology

O exchange rate quantity of $ S D1 D2 Which change in country X would have caused this? a fall in its international competitiveness

lower prices for the country’s exports