Economics 0455/13 October/November 2025: question paper and mark scheme

Question

What is least likely to increase the geographical mobility of labour? A greater provision of information about available jobs B improved roads and communication network C increased opportunities for education and training D strengthened family ties and relationships

Question

Which value does opportunity cost measure? A environmental damage B next best alternative forgone C output of labour D price paid

Question

The diagram shows a production possibility curve (PPC). Which position is most likely to lead to the greatest outward shift of the PPC? consumer goods B A C D O capital goods

Question

What is not a function of prices in a market economy? A prices allow income to be distributed equally B prices ration scarce resources among economic agents C prices rise and fall to reflect shortages and surpluses D prices send information to consumers and producers

Question

The diagram shows the market for fresh fish in the Caribbean with equilibrium point X. A new type of fishing boat increases production, which reduces costs. Which point represents the new equilibrium? S3 price S1 S2 B A X C D D2 D1 O quantity

Question

The table shows the market schedule for good X. quantity quantity price supplied demanded 10 400 100 9 300 200 8 200 300 7 100 400 If the quantity supplied increases by 50% at each price, what will the equilibrium price and quantity be? price quantity A 10 100 B 9 200 C 8 300 D 7 400

Question

The price of fish has increased from $3.00 to $4.80. The quantity supplied of fish has increased from 100 units to 130 units. What is the price elasticity of supply (PES) of fish? A 0.5 B 1.3 C 1.8 D 2

Question

Which combination shows features of the mixed economic system? price private public mechanism sector sector A no no yes B no yes no C yes yes no D yes yes yes

Question

The diagram shows the equilibrium price for bread. S price ($) 5 D 0 quantity What will be the short-term effect if the government sets a maximum price below $5? A a shift in the demand curve B a shift in the supply curve C an excess of demand over supply D an excess of supply over demand

Question

Why do banknotes function as money? A They are backed by gold. B They are durable. C They are generally acceptable. D They have intrinsic value.

Question

Worker X earns less than worker Y. What is most likely to be true of worker X? A They have a longer period of training than worker Y. B They have a longer working day than worker Y. C They have skills that are more in demand than worker Y. D They have weaker bargaining power than worker Y.

Question

What would increase the strength of a trade union? A a growth in part-time employment B a growth in the membership C a rise in the national minimum wage D a rise in the standard of living

Question

The size of the domestic car industry in Japan has enabled Japanese car producers to be more price competitive than rival car producers. What is an explanation for this? A Economies of scale are present in the Japanese car industry. B Managerial problems exist in the Japanese car industry. C Productivity is low in Japan. D The Japanese car industry is very labour-intensive.

Question

The table shows the output of cakes from four bakeries, A, B, C and D. Which bakery has the highest labour productivity? labour output (hours per day) (cakes per day) A 10 40 B 40 640 C 50 750 D 100 500

Question

The table shows a firm’s average revenue and average cost at different levels of output. When all output is sold, which level of output generates the most profit? output average average (units) revenue (US$) cost (US$) A 5 10 30 B 10 20 20 C 15 25 15 D 20 30 18

Question

What would make the existence of a monopoly market more likely? A consumers prefer a variety of choice in products B significant economies of scale can be achieved C there are low barriers to entry and exit for firms D there are no restrictions on international trade

Question

Which role is not performed by a government? A paying dividends to shareholders B promoting international trade agreements C providing state benefits D subsidising merit goods

Question

A government has stated for the next year it has four main aims. 1 low and stable inflation 2 providing subsidies to farmers 3 raising productivity of workers in the public sector 4 stability in the balance of payments What are the two macroeconomic aims for the government? A 1 and 2 B 1 and 4 C 2 and 3 D 3 and 4

Question

What is not likely to be included in a government budget? A anticipated tax revenue B changes in exchange rates C forecast government borrowing D proposed government spending

Question

Which combination of policy measures is most likely to increase total demand in an economy? money supply interest rate exchange rate A decrease decrease revaluation B decrease increase devaluation C increase decrease devaluation D increase increase revaluation

Question

Which supply-side policy measure would most likely cause the greatest increase in labour productivity in a country? A a decrease in the rate of corporation tax B a reduced top rate of income tax C improved education and training provision D privatisation of a state-owned industry

Question

How is economic growth of a country measured? A by an increase in the monetary value of goods produced B by an increase in the number of people in employment C by an increase in the real Gross Domestic Product (GDP) D by an increase in the value of the Human Development Index (HDI)

Question

A country experiences a significant fall in unemployment. What is a possible advantage and a possible disadvantage of such a fall? possible advantage possible disadvantage A fall in government spending fall in labour disputes on unemployment benefits B fall in tax revenue fall in poverty C rise in living standards rise in inflation rate D rise in output rise in labour mobility

Question

A country’s Consumer Prices Index (CPI) falls from 120 to 110 in a year. What will be a likely effect of this fall? A incomes will fall in real terms B savings will fall in real terms C the rate of interest will rise D the real value of debt will rise

Question

The population sizes of four countries, A, B, C and D, are all equal. Which country is most likely to have the highest population growth, given the changes in the table? birth rate death rate net migration A decreasing increasing unchanged B increasing decreasing increasing C increasing increasing decreasing D unchanged increasing decreasing

Question

Which combination of characteristics would be found in a less developed economy? population literacy rates tertiary sector growth A high high small B low high small C high low large D low low large

Question

What is a likely benefit of increased national specialisation? A It guarantees a balance of trade in goods and services surplus. B It increases dependency on other economies. C It lengthens international supply chains. D It reduces the cost of living.

Question

What is not a likely benefit of free trade? A consumers should experience lower prices B consumers should have a greater choice of goods C firms could be protected from foreign competition D firms could take advantage of economies of scale

Question

Which combination of changes would definitely raise the price of the Pakistani rupee on the foreign exchange market? demand for Pakistan’s demand Pakistan’s exports for imports A decrease decrease B decrease increase C increase decrease D increase increase

Question

What is a likely government policy to reduce a deficit on the current account of the balance of payments? A increasing the value of the foreign exchange rate B increasing training for workers in export industries C reducing subsidies to domestic export industries D reducing tariffs on imported goods and services