0455 Economics November 2025 Question Paper 23

1 (a) Calculate the number of Malawians who had access to electricity in 2022. [1]

(b) Identify two capital goods used in Malawi. [2]

(c) Explain what is likely to have happened to Malawi’s production possibility curve (PPC) in January 2022. [2]

(d) Explain two reasons why the supply of Malawian tea may increase. [4]

(e) Draw a demand and supply diagram to show the effect of a report stating the health risks of consuming sugar on the market for sugar. [4]

(f) Analyse the relationship between GDP per head and the percentage of children who complete primary education. [5]

(g) Discuss whether or not Malawi should develop a solar energy industry. [6]

(h) Discuss whether or not a government should try to stop its country’s foreign exchange rate falling in value. [6] Section B Answer any three questions. Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied.

2 A Swiss multinational food manufacturer increased prices for its products by an average of 8% in 2022. It increased its prices in the USA by 11.6%. This multinational company (MNC) is one of the world’s oldest MNCs. It started as a small firm but has grown over the last 160 years. Over this period, its decisions have always been influenced by opportunity cost.

(a) Define multinational company. [2]

(b) Explain two reasons why a firm may charge a different price for the same product in two different countries. [4]

(c) Analyse how opportunity cost influences the decisions made by consumers, workers and producers. [6]

(d) Discuss whether or not consumers would benefit from an increase in the number of small firms in an industry. [8]

3 Central banks influence their countries’ money supply. Central banks also regulate commercial banks. Households benefit from these commercial banks in several ways. In recent years, commercial banks have introduced new technology. Global online banking increased by 14% between 2019 and 2022. These advances in technology were combined with a greater use of division of labour.

(a) Identify two ways central banks differ from commercial banks. [2]

(b) Explain two characteristics that coins possess which mean they can perform the functions of money. [4]

(c) Analyse the services provided to households by commercial banks. [6]

(d) Discuss whether or not division of labour will benefit workers. [8]

4 The Central African country Chad has a triangle-shaped population pyramid and a high level of poverty. It regularly has an overall deficit on the current account of its balance of payments. Chad usually has a surplus on its secondary income. However, its trade in goods, trade in services and primary income are all usually in deficit. Some economists suggest that the Chadian Government should impose import quotas to reduce its trade in goods deficit.

(a) Define primary income. [2]

(b) Explain two influences on the shape of a country’s population pyramid. [4]

(c) Analyse the causes of poverty. [6]

(d) Discuss whether or not imposing import quotas will reduce a trade in goods deficit. [8]

5 In 2023, the Canadian Prime Minister said that his country’s aim was to increase immigration to half a million a year. This was because the country was experiencing labour shortages and an increase in life expectancy. More workers in Canada would increase the tax revenue available to spend on pensions, and more workers would also increase consumer spending. An increase in the immigration of both skilled and unskilled workers might affect the country’s car industry.

(a) Identify two causes of an increase in life expectancy. [2]

(b) Explain two ways a firm could attract skilled workers from another country. [4]

(c) Analyse how an increase in consumer spending could increase economic growth. [6]

(d) Discuss whether or not the wages of workers employed by car firms will increase in the future.

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