iGCSE Paper 1, June 2019

Q1(a) Multiple choice picking a factor of production.

Q1(b) Multiple choice working monthly total costs from $40 000 fixed costs and $150 per unit at 1 000 units.

Q1(c) Give the meaning of demand.

Q1(d) Give the formula for social costs.

Q1(e) Give the meaning of the tertiary sector.

Q1(f) Work out average cost per unit at an output of 2 000 units.

Q1(g) Diagram question: show what a hurricane destroying farmland does to the crop market.

Q1(h) Give one reason demand for these tickets is price inelastic.

Q1(i) Data response: why a drinks multinational bought shares in a local rival.

Q2(a) Multiple choice: which item belongs to the economic problem of scarcity.

Q2(b) Multiple choice picking the unachievable point on a production possibility curve.

Q2(c) Work out price elasticity of demand from a 15% price rise and a 12% fall in quantity demanded.

Q2(d) Give the meaning of innovation.

Q2(e) Name one thing that shifts a demand curve leftwards.

Q2(f) Set out one non-price benefit to passengers of this competition.

Q2(g) Give one reason auto rickshaw fares run higher outside the city centre.

Q2(h) Data response: how far technology can ease the shortage of city-centre parking.

Q3(a) Multiple choice classifying the product from its elasticity data.

Q3(b) Multiple choice picking the diseconomy of scale.

Q3(c) Diagram question: show a minimum wage set above the equilibrium wage and label the resulting quantities.

Q3(d) Data response: why Canadian firms struggled to recruit the workers they needed.

Q3(e) Data response: whether education and training is the best route to higher productivity.

Q4(a) At a $50 price, calculate the surplus left unsold.

Q4(b) Data response: why collusion hurts online buyers of electrical goods.

Q4(c) Data response: weigh up how competing in an oligopoly shapes firms' behaviour.