International A Level Unit 1, Oct 2022

Q1 Identify the consequence of diminishing marginal utility from these choices (total utility rising faster / an upward-sloping supply curve / a downward-sloping demand curve / total utility rising at a constant rate).

Q2 Four countries' solar and coal electricity generation shifted between 2019 and 2020, as tabulated; which claim about renewable and non-renewable resources follows?

Q3 In the Netherlands, organic versus non-organic meat yields a cross elasticity of demand of +0.5; what does that show? (substitutes / normal goods / unrelated / complements)

Q4 An economy sits at point X on its production possibility frontier: work out what follows about opportunity cost, growth and attainable points.

Q5 UK consumers loyal to their broadband provider pay about £113 a year extra. Identify which option is an example of inertia rather than another behavioural cause.

Q6 Peru taxed sugar-sweetened drinks ad valorem in 2018; from the diagram, work out the portion of that tax consumers end up bearing.

Q10 British Gas raised gas prices 22% in February 2021 and lost 350 000 of its 17 350 000 customers; calculate the price elasticity of demand, showing workings.

Q11 After a strong Spanish harvest, nectarines cost $1.42 per kg by August 2021, down from $1.83 in August 2020; explain the effect on consumer surplus, with a diagram.

Q7 US real incomes climbed 15% in April 2021 while margarine's income elasticity of demand is -0.2; sketch a diagram of the effect on margarine's equilibrium price and quantity.

Q8 Lake Chad lost 90% of its area over 1960-2017; explain how a free good differs from an economic good.

Q9 Henry Ford switched to assembly lines during the 1920s; explain one benefit a car maker gains from the division of labour.

Q12(a) Give the meaning of 'external costs' as used in Extract C.

Q12(b) Explain what Extract A's second paragraph means by 'the supply of semiconductors is inelastic'.

Q12(c) Analyse, using Extract A, two causes of the average 20% jump in semiconductor prices; supply and demand diagram required.

Q12(d) Examine two probable consequences for car manufacturers of excess demand in semiconductors, drawing on Extract B and Figure 1.

Q12(e) Using Extract C plus what you know, discuss what US subsidies to semiconductor manufacturers might do microeconomically; include a suitable diagram.

Q13 Evaluate what a free market economy has going for it (context: Hong Kong judged closest to free-market status on taxation, spending and regulation by the Fraser Institute, 2020).

Q14 Evaluate the case for the state supplying goods and services (context: the UAE's free schooling and healthcare, $136 million on flood defences, Dubai's record-height lighthouse).