Economics Paper 3 June 2023

1. Amaking family planning advice and contraceptives widely available
2. Blowering the legal age at which young women may marry
3. Cimproving the transport links between rural areas and the towns
4. Draising the grant paid to households that have a large number of children

1. Amarry later, are more likely to work and choose smaller families
2. Bpay a higher rate of income tax on the earnings they receive
3. Care barred from marrying until they have completed their studies
4. Dhave fewer years of schooling left once they enter employment

1. Ahouseholds short of income may turn to transactional sex, and cannot afford protection or testing
2. Bpoor households live much further from the towns, where the great majority of new infections occur
3. Cpoor households have fewer children, so fewer people are available to care for the sick
4. Dpoor households buy more imported food, which carries a greater risk of infection

1. Amigrant workers are paid their wages in cash each month rather than by transfer into a bank account
2. Bworkers live away from their families for long periods and carry infection between two homes
3. Cemployers in these industries are required by law to house workers in single rooms
4. Dthese industries employ mainly older workers, who are less likely to seek testing

1. Ahave to travel much further to reach a clinic than people who have been to school do
2. Bare refused treatment at the clinics that hand out written prescriptions
3. Care more likely to be employed in the mining and farming industries
4. Dcannot understand health messages explaining how the virus is spread and prevented

1. Aof working age and able to work but not looking for any employment
2. Bof working age, willing and able to work, and actively seeking a job
3. Cof working age but studying full time at a college or university
4. Dpast retirement age and living on a pension paid by a former employer

Answer this when you sit the paper.

1. Aa full time university student aged twenty who still lives at home
2. Ba retired teacher aged seventy living on a pension
3. Ca child of twelve who helps on the family plot
4. Da mechanic who has been laid off and is looking for work

1. Athe workers employed on the projects are removed from the labour force figures
2. Btaxes collected on the completed roads and dams pay for the projects themselves
3. Cpublic projects are exempt from the wage laws that apply to private firms
4. Dhigher spending raises total demand, so firms produce more and hire more labour

1. Aseasonal unemployment, which occurs when demand for labour varies with the time of year
2. Bstructural unemployment, where the skills workers hold no longer match the jobs available
3. Ccyclical unemployment, which is caused by a general fall in demand right across the economy
4. Dfrictional unemployment, which lasts only while a worker moves between two jobs

Answer this when you sit the paper.

1. Aan import or export licence has to be obtained before goods move
2. Bgoods travel further, so insurance and transport charges are higher
3. Cone currency is used throughout, so there is no exchange rate risk
4. Dbuyers and sellers are governed by two different systems of law

1. Aan invoice showing what the buyer owes the seller
2. Ba delivery note listing the goods being handed over
3. Ca credit note issued when goods are returned
4. Da bill of lading and a certificate of origin

1. Ainvisible trade in tourism, banking and insurance services
2. Bthe buying and selling of shares and government stock
3. Cwholesale and retail trade with the services that assist them
4. Dvisible exports and visible imports of manufactured goods and raw materials

1. Aare still small and high cost, so they close before they can ever grow
2. Bare obliged to export the whole of their output at world market prices
3. Cmust pay customs duty on the goods they sell in their own home market
4. Dgrow so quickly that they exhaust the country's supply of skilled labour

1. Atraders bring goods across a national border without declaring them to the customs authorities
2. Ba country exports more goods in a year than it imports from abroad
3. Ca government pays its own exporters a bonus on every unit they sell
4. Dforeign firms sell in a market below cost in order to drive out local producers

1. Aexport low-priced primary products and import costly manufactured goods
2. Bare unable to produce any goods at all that other countries would wish to buy
3. Ccharge higher tariffs on imports than industrial countries charge
4. Dtrade only with their immediate neighbours rather than worldwide

1. Aa rise in the amount of money held by households and by firms
2. Ba rise in the number of people employed in a country during the course of a year
3. Ca rise in a country's real gross domestic product over a period of time
4. Da rise in the general price level of goods and services over a year

1. Agrowth is measured in local currency while development is measured in United States dollars
2. Bgrowth is measured over one year while development is measured over ten years
3. Cgrowth applies to developed countries while development applies to poor countries
4. Dgrowth counts output only, while development also covers health, education and equity

1. Aare collected directly from firms rather than being estimated by the government
2. Binclude the output of the informal sector as well as the formal sector
3. Care expressed in a foreign currency, which makes comparison easier
4. Dvalue output at constant prices, so a rise caused by inflation is excluded

1. Athe size of a population does not change from one year to the next
2. Ba country whose population grows faster than its output is in fact worse off
3. Cpopulation figures are far more accurate than the figures collected for national output
4. Doutput per head is the figure that international organisations require

1. Anew factories, machines and power stations give each worker more to work with
2. Bfirms that buy machinery are exempted from paying tax on their profits
3. Ccapital goods are always imported, which raises the value of national trade
4. Dmoney spent on machinery is counted twice over in the national accounts

1. Aallow a government to fix the prices of all goods sold in the shops
2. Bguarantee that every business started in the country will be profitable
3. Cgive investors the confidence to commit funds to long-term projects
4. Dremove the need for a country to trade with any of its neighbours

1. Afelt only by poor households, while wants are felt by rich households
2. Bcheaper to buy than a want and is always produced inside the country
3. Cessential for survival, while a want gives extra satisfaction beyond survival
4. Dprovided free by the government, while a want has to be paid for

1. Awants disappear permanently as soon as a person has been satisfied once
2. Ba want satisfied today will be felt again, and new wants keep appearing
3. Cevery person in a country wants exactly the same goods and services
4. Dwants can all be met in full once a country's income is high enough

1. Aa planning ministry, which draws up output targets for each industry
2. Bthe largest firms in each industry, which agree what they will make
3. Cconsumers, whose spending bids up prices and draws resources into those goods
4. Dthe trade unions, which decide which industries their members will work in

1. Athe method that uses the newest machinery, whatever its cost may be
2. Bthe least-cost combination of factors, since they keep whatever they save
3. Cthe method that employs the largest possible number of local workers
4. Dthe method laid down for their industry by the government of the day

1. Athe order in which buyers arrive at the shop on the day of sale
2. Bthe level of income each household earns from the factors it owns
3. Cthe size of each household, so that larger families receive more
4. Da ration issued by government according to what each person needs

Answer this when you sit the paper.

1. Atwo firms at the same stage of production in the same industry join together
2. Ba firm joins with a business in a completely unrelated line of trade
3. Ca manufacturer buys the chain of shops through which its goods are sold
4. Da firm joins with its own supplier of raw materials further back in the chain

1. Ait guarantees the firm a supply of raw materials at a fixed price
2. Bit obliges the government to grant the firm a monopoly by law
3. Cit removes a competitor and raises the firm's share of the market
4. Dit allows the firm to sell its output directly to final consumers

1. Afaces a demand curve that has become perfectly elastic after the merger
2. Bno longer has to pay tax on the profits earned by either of the two firms
3. Ccan raise the price it charges customers without losing any of its sales
4. Dbuys inputs in bulk and spreads its overheads over a much larger output

1. Apaid for in cash, while indirect production is always paid for on credit
2. Bcarried out by the producer for his or her own use rather than for exchange
3. Ccarried out only in factories, while indirect production takes place on farms
4. Dcarried out for export, while indirect production supplies the home market

1. Aeach household becomes self-sufficient and independent of all others
2. Bpeople become interdependent, so a breakdown in one industry is felt widely
3. Cmoney is no longer needed, since goods are exchanged directly for goods
4. Dthe variety of goods available to a consumer becomes much narrower

1. Agovernment inspects factory goods but does not inspect household goods
2. Bthe raw materials used in factories are cheaper than those households buy
3. Cspecialised workers using better equipment produce on a much larger scale
4. Dfactories are able to sell their output before it has actually been produced

1. Areleases carbon dioxide, which traps heat and raises global temperatures
2. Bmakes rainfall more reliable in the areas immediately around the factories
3. Creduces the quantity of fossil fuel left for future generations to burn
4. Duses up the world's supply of oxygen faster than plants can replace it

1. Aleaves the soil exposed to the sun, which cools the surface of the ground
2. Bmakes it harder for farmers to find firewood for cooking their meals
3. Creduces the timber available to the construction and furniture industries
4. Dremoves the vegetation that absorbs carbon dioxide from the atmosphere

1. Athe harvesting of a maize crop at the end of the season
2. Bthe ploughing of contour ridges across a sloping field
3. Cthe rotation of crops from one season to the next
4. Dkeeping livestock and applying nitrogen fertilisers to fields

1. Afarmers plant more land in a dry year in order to make up the lost yield
2. Blow and unreliable rainfall cuts crop yields and livestock numbers alike
3. Cthe price of food falls, so farmers have no incentive to grow any crop
4. Drural workers move into farming, which lowers output per worker sharply

1. Aload shedding forces factories to work fewer hours or to run costly generators
2. Bthe power stations are obliged to sell electricity to neighbouring countries
3. Celectricity generated from a dam is of poorer quality than other electricity
4. Dfactories switch from electricity to labour, which raises the level of employment

1. Asoil erosion, desertification and new pests lower the productivity of land permanently
2. Ba single failed season forces every farmer in the country to leave the land
3. Cthe price of agricultural land falls, so fewer people are willing to buy it
4. Dfarmers must obtain a licence from government before planting any crop

1. Afirms sell products that are similar but differentiated by branding
2. Bmany small firms sell a product that consumers regard as identical
3. Ca single firm is the whole industry and its product has no close substitutes
4. Da few large firms each watch the others closely before changing price

1. Athe government guarantees the profit of any firm that is the sole seller
2. Bconsumers are willing to pay more for a good sold by a single seller
3. Chigh barriers to entry keep new firms out of the industry altogether
4. Dits average costs continue to fall however much output it produces

1. Ais required to charge every one of its customers the identical price
2. Bcan sell any quantity it chooses at whatever price it names
3. Cmust accept the price that is set for it by the industry as a whole
4. Dcan set either its price or its output, but not both independently

1. Aprofits earned locally leave the country instead of being reinvested there
2. Bthe parent company must pay the host government a fee on each transfer
3. Clocal shareholders are prevented by law from buying shares in the company
4. Dthe company is forced to sell its output at a price fixed by its own government

1. Abuys raw materials from local suppliers at prices below the market rate
2. Bshows its profits in low-tax countries and its costs in the host country
3. Csells its goods more cheaply in the host country than in its own country
4. Dmoves its skilled workers from the host country to its other operations

1. Ause capital-intensive technology and fill senior posts with expatriates
2. Boperate for only a few months in each year before closing down again
3. Cproduce goods that are sold entirely within the host country's borders
4. Dare required by the host government to employ only expatriate staff

1. Acounts the output of government services as well as that of firms
2. Bis published several months after the end of the year it refers to
3. Cis calculated at the prices ruling in a single chosen base year
4. Dis an average, and says nothing about how the income is shared out

1. Asubsistence farming, work done in the home and the informal sector
2. Bthe salaries paid to civil servants and to members of the armed forces
3. Cthe value of goods that firms sell to one another as intermediate inputs
4. Dthe profits earned by companies that are owned by foreign shareholders

1. Athey occur mainly in industrial countries rather than developing ones
2. Bthey are never deducted, and money spent cleaning up pollution is added on
3. Cthey are deducted twice over, which makes the recorded figure too small
4. Dthey raise the cost of living, which is already allowed for in the figures

1. Athe proportion of output that each country sells to other countries
2. Bthe size of the population among which the output is shared
3. Cthe rate at which prices are rising in each of the two countries
4. Dthe composition of output, that is what the output actually consists of

1. Acount only the output of factories and not the output of services
2. Bare collected from employers rather than from the workers themselves
3. Ctake no account of leisure time, working conditions or the effort involved
4. Dexclude the wages earned by workers doing overtime at the weekend

1. Anational income is measured in different units in different countries
2. Bthe cost of living differs between countries, so purchasing power parity is needed
3. Cthe two countries will have collected their statistics in different months
4. Dofficial exchange rates change only once in every financial year

1. Afinanced by the firm's shareholders out of their dividends for the year
2. Bsmaller than the rise in the prices charged for the firm's own products
3. Cpaid to workers in the public sector but not in the private sector
4. Dnot matched by a rise in output per worker, so unit labour costs rise

1. Areduces the quantity of goods households are able to buy abroad
2. Braises the local currency price of every imported input firms use
3. Clowers the foreign currency price of the country's exported goods
4. Dincreases the amount of money the central bank has to print

1. Araising indirect taxes such as value added tax and excise duty
2. Breducing the rate of income tax paid by workers and households
3. Clowering the rate of interest charged by the commercial banks
4. Dincreasing its own spending on roads, dams and public housing

1. Athe government replaces the currency with a new one every year
2. Bbanks are no longer permitted to accept deposits from the public
3. Cthe purchasing power of savings falls, so people hold goods instead
4. Dnotes and coins wear out faster when they change hands more often

1. Athe central bank withdraws the largest notes from circulation entirely
2. Bbuyers can no longer compare the prices charged by different sellers
3. Csellers become unwilling to accept it, and trade may revert to barter
4. Dthe coins in circulation come to be worth more as metal than as money

1. Alenders gain and borrowers lose, so nobody is willing to borrow at all
2. Bthe courts refuse to enforce any debt that was contracted in local currency
3. Cborrowers gain and lenders lose, so lenders demand very high interest or refuse
4. Ddebts have to be settled on the day they are contracted rather than later