Economics Paper 3 November 2010

1. Ahuman wants for goods and services are unlimited while the resources such as land, labour, capital and enterprise available to satisfy them are limited.
2. Bthe government fixes the prices of all goods and services sold within the domestic economy instead of leaving this to the market.
3. Cthe exchange rate between the local currency and major foreign currencies keeps moving up and down on a daily basis because of ongoing shifts in the country's overall balance of payments position.
4. Dworkers keep moving from rural farming areas into urban centres in search of factory and mining jobs that pay higher wages.

1. Aa given percentage change in price causes a larger percentage change in quantity demanded, so demand is responsive to price.
2. Bquantity demanded stays exactly the same no matter how much price changes.
3. Ca given percentage change in price causes an equally small percentage change in quantity demanded, so demand is unresponsive to price.
4. Dquantity demanded falls to zero however small the rise in price.

1. Aoligopoly
2. Bmonopoly
3. Cperfect competition
4. Dmonopolistic competition

1. Athe amount of capital employed in the business
2. Bthe age of the business owner at the time the company was founded
3. Cthe number of people the business employs
4. Dthe value of annual sales turnover

1. Athe total number of public holidays officially granted to workers across that particular industry each year.
2. Beach worker's marginal revenue product, that is, the extra revenue their labour adds to the firm's output.
3. Cthe number of years each worker has held continuous membership in their industry's registered trade union.
4. Dthe average distance each worker must travel from home to their usual place of work every day.

Answer this when you sit the paper.

1. Aonly measures the output produced by the agricultural sector of the economy.
2. Bfalls automatically whenever a country's total population increases for any reason.
3. Ccannot be calculated for any country that has a floating exchange rate.
4. Dignores how income is distributed among the population, so a high average can mask widespread poverty.

1. Athe income approach
2. Bthe output (value added) approach
3. Cthe balance of payments and foreign exchange reserves approach
4. Dthe expenditure approach

Answer this when you sit the paper.

1. Aa medium of exchange
2. Ba store of value
3. Ca unit of account
4. Da source of government tax revenue

1. Athe pace of technological progress and innovation in production methods
2. Bthe growth rate of the labour force and improvements in its skills
3. Cthe retail price index published for the most recent month
4. Dthe rate of capital accumulation through investment in machinery and infrastructure

Answer this when you sit the paper.

1. Aseasonal unemployment
2. Bstructural unemployment
3. Cfrictional unemployment
4. Dcyclical unemployment

1. Aa high dependence on the primary sector, such as agriculture and mineral extraction
2. Brelatively low levels of income per capita compared with industrialised countries
3. Ca services sector that is larger, on average, than in industrialised countries
4. Dlimited access to modern technology and relatively low levels of industrialisation

Answer this when you sit the paper.