Economics Paper 2 June 2023

1. Athe quantity offered for sale depends only on the cost of the raw materials used
2. Bthe higher the price of a good, the greater the quantity producers offer for sale
3. Cthe higher the price of a good, the smaller the quantity producers offer for sale
4. Dthe quantity offered for sale stays the same whatever price the market settles at

1. Aa rise in the wages paid to the workers who produce it
2. Ban improvement in the technology used to produce it
3. Ca new tax charged on each unit that is produced
4. Da drought that destroys part of the season's crop

Answer this when you sit the paper.

1. Aprice inelastic, because quantity supplied changed less than proportionately to price
2. Bunitary elastic, because quantity supplied and price changed by the same percentage
3. Cperfectly inelastic, because quantity supplied did not respond to the price change
4. Dprice elastic, because quantity supplied changed more than proportionately to price

1. Amember states stop trading with countries outside the bloc
2. Bits producers can sell freely into a much larger regional market
3. Ceach member may charge tariffs on goods from partner states
4. Devery member must adopt the same currency and central bank

1. Aavoid paying any tax on the profits it earns at home
2. Bexpand its output and lower its average cost per unit
3. Ccharge a different price to each customer that it serves
4. Draise its average cost per unit as its total output grows

1. Athe population falls, so fewer social services have to be provided
2. Ball natural resources are left untouched for future generations
3. Cthe country stops trading with the rest of the world entirely
4. Dincomes rise, so households afford better food, housing and health care

1. Aexpanding industry and mining pollute the air, water and land
2. Bthe country becomes unable to import the machinery it needs
3. Clife expectancy falls as more households gain access to clinics
4. Dthe government collects less tax as more people find paid work

1. Aa fall in the total population of both the towns and the countryside
2. Ban equal spread of income between town dwellers and rural households
3. Covercrowding, slums, congestion and pressure on urban services
4. Da shortage of labour in the towns and rising wages in farming

Answer this when you sit the paper.

1. Athe exchange of goods and services across national boundaries
2. Bthe exchange of goods between firms inside one single country
3. Cthe movement of workers from one industry to another industry
4. Dthe buying and selling of shares on a country's stock exchange

Answer this when you sit the paper.

1. Athe money supply held by the commercial banks
2. Bthe exchange rate against the United States dollar
3. Cthe rate of interest charged by banks on loans
4. Dinvestment by firms in new plant and equipment

1. Aimports minus exports over the period
2. Bexports minus the tariffs charged on them
3. Cexports minus imports over the period
4. Dexports plus imports over the period

1. Aburning coal and firewood in place of using solar energy
2. Bclearing woodland to open new tobacco fields every season
3. Creplanting trees to replace those that have been cut down
4. Dexporting minerals as raw ore as fast as they can be mined

1. Athe country no longer needs to import any capital goods
2. Bthe exchange rate is fixed permanently against the dollar
3. Ca wider tax base lets it fund schools, clinics and roads
4. Dthe government is relieved of the duty to provide services

1. Athe industry needs time to grow before it can meet foreign competition
2. Bconsumers would rather pay a higher price for imported goods
3. Cthe industry pays no company tax while the tariff is in place
4. Dforeign producers will lower their own prices in response to it

1. Athey are unable to buy goods made inside their own country
2. Bthey must pay for imported goods in a foreign currency
3. Cthey receive lower wages from the firms that employ them
4. Dthey pay higher prices for a narrower range of goods

1. Aits partners retaliate, so its exports fall and it ends up worse off
2. Bits government will lose the tariff revenue it had been collecting
3. Cits exporters will be required to sell only in the home market
4. Dits own currency will be devalued by the partner countries

1. Aeach unit exported earns more foreign currency once processed
2. Bthe world price of unprocessed ore rises when less is exported
3. Craw materials become easier to transport once processed
4. Dprocessed goods are exempt from tariffs in every market