A Level Economics (9708) Past Papers – Cambridge International

Sharpen your analytical skills with guided past paper practice.- Each time different questions are asked

Sharpen your analytical skills with Cambridge International A Level Economics (9708) past paper practice. Explore microeconomics, macroeconomics, international trade, and development economics while testing your knowledge through interactive quizzes and guided solutions for exam success.

30 randomized questions every attemp

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A Levels | Economics (9708)
Question Count : 30

Duration :1 hours

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A Levels | Economics (9708)

Challenge yourself with 40 fresh questions every attempt — no two quizzes are ever the same! 🎯

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The opportunity cost of country Y producing two shoes is four t-shirts.

The total output of shoes and t-shirts after specialisation would be 28 000.

The opportunity cost of country X producing one t-shirt is four shoes

The total output of shoes and t-shirts after specialisation would be 24 000.

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the tariff rate and the price elasticity of domestic supply

the price elasticities of domestic supply and demand

the tariff rate and the price elasticity of domestic demand

the tariff rate and the price elasticities of both domestic demand and supply

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Product X has a price elasticity of supply (PES) of +2, whilst product Y has a PES of +0.2.
Which statement about products X and Y is correct?

A 20% price fall would lead to a greater decrease in production of Y than of X.

After a price fall of 10%, more people would buy X than would buy Y.

After a price rise, it is more difficult to increase Y’s output than X’s.

X has more substitutes than Y.

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The opportunity cost of producing corn falls when moving from M to N

Resources used in producing corn are more efficient than in producing wheat.

As the price of corn falls, more of it is demanded.

The opportunity cost of producing corn is constant when moving from M to N.

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What best illustrates the process of privatisation?

the purchase of government bonds by private sector commercial organisations

the transfer of public sector assets to the private sector

the purchase of shares in a private company

a single private shareholder acquires complete control of an organisation

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Domestic firms’ costs have increased.

A rise in inflation is expected.

The government reduces tax on oil and petroleum products.

Consumers face a fall in their disposable income.

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What is not a function of money?

It is a store of value.

It is a medium of exchange.

It is a unit of account.

It is a measure of satisfaction.

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If an industry is currently state-owned and state-run, what does not represent a reason for it
being privatised?

Its owners would have more incentive to make it operate profitably.

There will be greater incentives for managers to introduce modern technology.

Decisions will no longer be taken with political considerations in mind.

The benefits of merit goods will be taken into account in decision-making.

15 / 30

Which policy is most likely to help to correct an adverse balance on the current account of the
balance of payments?

reducing indirect taxes

depreciating the currency

abolishing tariffs

reducing direct taxes

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Cinema owners will receive less income.

Restaurant owners will receive more income.

Yim will spend more money on both products.

Lee will spend more money on both products.

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In which case is the price system not a possible method of allocating resources?

in the provision of public goods by the government

in the ownership of land for agricultural use

in the distribution of foodstuff among the population

in the hiring of workers by employers

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What is an accurate statement about possible causes and/or consequences of a worsening in a
country’s terms of trade?

It will result from an increase in consumers’ incomes in its major trading partners.

It will result in an improvement in its balance of trade.

It will result from a fall in the demand for its exports.

It will result in a decrease in interest rates by its major trading partners.

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$33 billion

$25 billion

$19 billion

$31 billion

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A country with a floating exchange rate experiences a large surplus on the current account of its
balance of payments.
What is likely to decrease as a consequence?

the prices of imports into the country

the exports of capital from the country

the prices of imports into the country

the level of employment in the country

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x + y

x – y

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the increase in consumer surplus from the introduction of a maximum price for rice

the loss in government revenue from the reduction in a lump sum tax on rice

the extra saving to importers of the removal of a tariff on rice

the cost to the government of a subsidy to rice growers

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an increase in the money supply

a decrease in labour productivity

a decrease in exports

an increase in the government’s spending

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What is the most likely cause of an outward shift of a country’s aggregate demand curve?

a decrease in the general price level

a decrease in the money supply

a decrease in the competitiveness of domestically produced products

a depreciation of the country’s exchange rate

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Which statement correctly describes absolute advantage?

It is when a country has a lower wage cost in producing a good than another country.

It is when a country has a higher opportunity cost in producing a good than another country.

It is when a country’s output of a good is greater per unit of resource than another country.

It is when the relative prices of exports of a country are greater than the relative prices of its imports.

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What would be a valid objection to the government provision of goods and services?

Investment in the private sector might be reduced.

There will be an increase in consumer sovereignty.

Only the private sector can provide merit goods.

Tax rates and tax income are likely to fall.

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an increase in the exchange rate that makes locally produced goods less price-competitive, both at home and abroad

an increase in interest rates that increases the cost of borrowing

an increase in real wages of labour

an increase in government spending on infrastructure that increases the production potential of the economy

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A Level Economics (9708) Past Papers – Cambridge International

Sharpen your analytical skills with guided past paper practice.- Each time different questions are asked

30 randomized questions every attemp

No repeats — fresh challenges each time

Practice smarter, improve faster

Boost your exam performance with guided past paper practice.

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