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ZIMSEC A Level · 6073/1 · J2025

Economics Paper 1 June 2025

Questions
40
Syllabus code
6073/1

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Questions
40
Pass mark
24
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Answer every question in the printed order, get marked at the end, then see the answers.

The questions

Question 1

data collection
A pilot survey can best be described as
  1. Adata collected using secondary research.
  2. Bdata collected using primary research.
  3. Csurvey carried to find the performance of a firm.
  4. Dan initial survey carried out before the main survey.

Question 2

statistics

The pie chart below shows the number of books purchased by a bookshop vendor for reselling.

The fraction represented by Economics expressed in degrees is

  1. A94°.
  2. B129,6°.
  3. C216°.
  4. D360°.

Question 3

factor markets

The following table relates to a month production of a perfectly competitive firm. Price per shirt is $2 and the wage rate is $60 per week.

Labour force 1, total product 50 shirts per week
Labour force 2, total product 120
Labour force 3, total product 180
Labour force 4, total product 220
Labour force 5, total product 250
Labour force 6, total product 260
Labour force 7, total product 280

To maximise profit a firm should employ

  1. A3 workers.
  2. B4 workers.
  3. C5 workers.
  4. D6 workers.

Question 4

interest rates and inflation

The table shows annual inflation rates and interest rates for five countries.

Zambia: rate of inflation 0,7 in 2011 and 2,3 in 2012; interest rate 3,7 in 2011 and 4,9 in 2012
Ghana: inflation 4,1 and 4,8; interest rate 7,7 and 9,7
Zimbabwe: inflation 1,2 and 2,8; interest rate 4,3 and 7,0
Nigeria: inflation 4,9 and 7,8; interest rate 10,3 and 13,9

Which country A, B, C or D experienced a fall in its real rate of interest between 2011 and 2012.

  1. AZambia
  2. BGhana
  3. CZimbabwe
  4. DNigeria

Question 5

comparative advantage

The diagram below shows the outputs of tractors and cars that can be produced in countries X and Y, with a given quantity of resources.

A mutually beneficial exchange rate is

  1. Aone car for one tractor.
  2. Btwo cars for one tractor.
  3. Cthree cars for one tractor.
  4. Dfour cars for one tractor.

Question 6

income elasticity

The table below shows a consumer's expenditure on a range of goods at different levels of income.

At an income of $400 the consumer spends $100 on each of goods W, X, Y and Z.
At an income of $500 the consumer spends 180onW,180 on W, 110 on X, 100onYand100 on Y and 60 on Z.

For which of the goods does the consumer experience inelastic income elasticity?

  1. AGood W
  2. BGood X
  3. CGood Y
  4. DGood Z

Question 7

market failure
A common property resource is one that
  1. Ais owned by the society and governed by a few businesses.
  2. Bis rivalrous but not excludable.
  3. Chas a possibility of excluding a few.
  4. Dproperty rights may be somehow violated

Question 8

public goods

The following diagrams represent consumption of a public good by two consumers.

Which of the diagrams A, B, C or D represents the market price and quantity?

  1. AA
  2. BB
  3. CC
  4. DD

Question 9

demand
A firm is producing a superior good. The effect of a reduction in income will be
  1. Aa decrease in the quantity demanded of the good.
  2. Ba decrease in the demand of the good.
  3. Can increase in the quantity demanded of a good.
  4. Dan increase in the demand of a good.

Question 10

elasticity

The diagram below shows the demand for and supply of a product.

It can be concluded that the product

  1. Atakes a large proportion of the consumer's income.
  2. Bhas infinity price elasticity of demand.
  3. Chas no substitutes.
  4. Dis an inferior good.

Question 11

comparative advantage

The following table shows a production possibility table for commodities wheat and rice for Malawi and Botswana.

Botswana: wheat 200 tonnes, rice 100 tonnes
Malawi: wheat 100 tonnes, rice 300 tonnes

It can be concluded that

  1. Aboth countries have an absolute advantage in wheat production.
  2. BBotswana has an absolute disadvantage in wheat production.
  3. CMalawi has both an absolute advantage and comparative advantage in producing rice.
  4. DBotswana has an absolute advantage in wheat production and comparative advantage in rice production.

Question 12

utility
The slope of the budget line is measured by
  1. Athe negative ratio of the two prices with the price of the good plotted on the horizontal axis appearing in the numerator.
  2. Bthe negative ratio of the two prices with the prices of the good plotted on the horizontal axis appearing in the denominator.
  3. Cthe negative ratio of the two prices with the price of the good plotted on the vertical axis appearing in the numerator.
  4. Dthe positive ratio of the two prices, with the price of the good plotted on the vertical axis appearing in the denominator.

Question 13

utility
Which point A, B, C or D represents consumer equilibrium?
  1. AA
  2. BB
  3. CC
  4. DD

Question 14

demand
A demand schedule is drawn up on the assumption that the price of
  1. Afactors of production is not held constant.
  2. Bthe good is not held constant.
  3. Ccomplementary goods is not held constant.
  4. Dsubstitutes is not held constant.

Question 15

elasticity of supply
The supply of a particular product will be more inelastic if
  1. Aswitching of factors between products can be done with ease.
  2. Bthe good can be stored for a longer period of time.
  3. Cit takes longer to produce the good.
  4. Dthere are more firms in the industry.

Question 16

costs

A cost minimising firm allocates a given total output between two different plants.

Which of the following must be equal between the two plants?

  1. Atotal costs
  2. Bmarginal costs
  3. Caverage variable costs
  4. Daverage total costs

Question 17

consumer and producer surplus

The diagram below illustrates the effects of an increase in demand to consumer surplus and producer surplus.

Which area represents the new producer surplus after a change in demand from D1 to D2.

  1. AJGH
  2. BFGJ
  3. CMKL
  4. DFKM

Question 18

supply

The diagram shows supply curves of tobacco.

The shift of supply curve from S1 to S2 could be caused by

  1. Aa government subsidy to producers of tobacco.
  2. Ba fall in the price of tobacco.
  3. Can increase in the wage rate paid to workers in the production of tobacco.
  4. Da fall in the prices of raw materials used in processing of tobacco.

Question 19

revenue

The diagram below shows a firm's total revenue curve.

At point X

  1. Amarginal revenue is equal to marginal cost.
  2. Baverage revenue is equal to average cost.
  3. Cmarginal revenue is equal to average revenue.
  4. Dmarginal revenue is zero.

Question 20

costs
The following are unit costs except
  1. Amarginal cost.
  2. Baverage total cost.
  3. Caverage variable cost.
  4. Dtotal fixed cost.

Question 21

monopoly

The diagram below represents the revenue and cost conditions of a profit maximising monopolist.

Which one of the following represents the monopolist profit per unit of output?

  1. AVX
  2. BXS
  3. CSW
  4. DXW

Question 22

market structures
Which one of the following features distinguishes monopolistic competition from perfect competition?
  1. AProduct homogeneity and non-promotional activities.
  2. BProduct differentiation and non-promotional activities.
  3. CProduct differentiation and heavy promotional activities.
  4. DEarning of abnormal profits by firms in the long run equilibrium.

Question 23

perfect competition

The diagram below represents the revenue and cost conditions of a profit maximising form under perfect competition.

The profit maximising output is

  1. AX0.
  2. BX1.
  3. CX2.
  4. DX3.

Question 24

factors of production
Physical capital and non-renewable resources are similar inputs in that they
  1. Acan be replaced after production.
  2. Bare used in the production process.
  3. Care all a permanent reduction in the world.
  4. Dare bulky and durable.

Question 25

human capital
Human capital can be enhanced by the following except
  1. Atraining.
  2. Beducation.
  3. Cwages.
  4. Dexperience.

Question 26

international trade

The demand for a country's product is price elastic. The effect of introducing export subsidies on its balance of trade and terms of trade will be

The options give the effect on the balance of trade and then the effect on the terms of trade.

  1. Aimprove and improve
  2. Bimprove and worsen
  3. Cworsen and improve
  4. Dworsen and worsen

Question 27

production
The total physical product is at its maximum when the
  1. AMPP is zero.
  2. BMPP is above the APP.
  3. CAPP is equal to the MPP.
  4. DAPP is rising and below the MPP.

Question 28

externalities
The government policy on vaccination against Covid 19 is a
  1. Apositive consumption externality.
  2. Bpositive production externality.
  3. Cnegative consumption externality.
  4. Dnegative production externality.

Question 29

externalities

The diagram below shows the market conditions of a good.

Which market failure is represented by the diagram?

  1. Aoverproduction of a good with positive externality
  2. Boverproduction of a good with negative externality
  3. Cunderproduction of a good with positive externality
  4. Dunderproduction of a good with negative externality

Question 30

cost benefit analysis
In a process when values are assigned to costs and benefits, and where shadow prices are used.
The project can be granted a go ahead by the government when
  1. Aevaluation of the costs and benefits is well completed.
  2. Btotal social costs of a project are exceeded by the total social benefits.
  3. Csocial costs of a project are greater than private benefits.
  4. Dsocial benefits of a project are outweighed by social costs.

Question 31

national income equilibrium

A closed economy with government has the following

C = 300+0,6YandI=300 + 0,6Y and I = 400.

The equilibrium income is

  1. A$280.
  2. B$420.
  3. C$700.
  4. D$1 750.

Question 32

the multiplier

An increase in government spending shifted the aggregate demand from AD0 to AD1 as shown below.

The multiplier for the economy is

  1. A10.0.
  2. B28.0.
  3. C32.5.
  4. D40.0.

Question 33

the multiplier
When income increases by 100,100, 10 is saved, $10 is taken in taxes and $10 is spent on imports. By how much should public spending (G) rise if natural income is to increase by $120 000?
  1. A$30
  2. B$4 000
  3. C$36 000
  4. D$120 000

Question 34

money
The main function of money is
  1. Astore of value.
  2. Bunit of account.
  3. Cmedium of exchange.
  4. Dstandard of deffered payment

Question 35

money
When inflation affects the standard of deffered payments function of money
  1. Alenders will benefit.
  2. Bborrowers will benefit.
  3. Ctraders will resort to barter trade.
  4. Dhouseholds will buy fixed assets.

Question 36

money
The Reserve Bank of Zimbabwe introduced Gold coins to reduce demand of foreign currency in the country. The Gold coins were performing the.
  1. Astandard of deffered payments function.
  2. Bmedium of exchange function.
  3. Cstore of value function.
  4. Dunit of account function.

Question 37

balance of payments
To reduce a current account deficit and unemployment, the Zimbabwean government should employ the policy measure of
  1. Adevaluation.
  2. Bdecreasing income tax.
  3. Cincreasing corporation tax.
  4. Dincreasing the rate of tax.

Question 38

unemployment
If the unemployment experienced in Zimbabwe is cyclical, an efficient policy to adopt is
  1. Acutting welfare spending on benefits.
  2. Bimproving information about job vacancies.
  3. Craising interest rates.
  4. Dreducing tax rates.

Question 39

welfare economics
A regulation that makes some individuals better off without making anyone worse off is
  1. Aallowing firms to buy and sell pollution permits.
  2. Bintroducing a national minimum wage.
  3. Cintroducing free bus travel for those above 60 years.
  4. Dremoving restrictions on opening hours of supermarkets.

Question 40

inflation
The annual rate of inflation falls from 8% to 4%. Which of the following statements is correct?
  1. AThe standard of living has increased.
  2. BThere has been a reduction in the Real Price Index.
  3. CThe cost of living has increased.
  4. DThe purchasing power of money has increased.

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