iGCSE Paper 1, Jan 2020

Q1(a) Multiple choice picking the value showing perfectly price inelastic supply.

Q1(b) Multiple choice working monthly fixed costs from $1.25m total costs and $100 per unit at 5 000 units.

Q1(c) Give the meaning of supply.

Q1(d) Name a job in the secondary sector.

Q1(e) Give the meaning of labour as a factor of production.

Q1(f) Work out income elasticity of demand from a 25% income rise and a 10% rise in quantity demanded.

Q1(g) Diagram question: show what rising incomes do to the market for wireless headphones.

Q1(h) Give one opportunity cost to the government of the decision described.

Q1(i) Data response: why a firm runs a fundraising programme rather than maximising profit.

Q2(a) Multiple choice picking the diagram showing excess demand.

Q2(b) Multiple choice on how land is best described.

Q2(c) Give the formula for profit.

Q2(d) Work out price elasticity of supply from a 30% price rise and a 36% rise in quantity supplied.

Q2(e) Give the meaning of finance.

Q2(f) Identify and describe the market structure a small artisan producer operates in.

Q2(g) Give one reason the situation described creates a free rider problem.

Q2(h) Data response: whether a small firm gains more by staying small than by growing.

Q3(a) Multiple choice picking the external economy of scale.

Q3(b) Multiple choice on the defining feature of an oligopoly.

Q3(c) Diagram question: draw two production possibility curves showing an economy shifting outwards.

Q3(d) Data response: what mechanisation does to the demand for labour.

Q3(e) Data response: whether fireworks generate more external costs than benefits.

Q4(a) Work out how many cakes were sold when total revenue reached EUR3 600.

Q4(b) Data response: why governments regulate takeovers.

Q4(c) Data response: how useful price elasticity of demand is when deciding whether to raise VAT.