AS · June 2016 · Paper 1
Which one of the following is the most likely consequence of an increase in the division of labour in the production of smartphones?
Explain what function money has in improving specialisation in the production of smartphones.
Define the term ‘external benefits’.
Which one of the following measures could a government introduce to achieve the social optimum consumption of nursery school places? It could introduce a:
Annotate on Diagram A the welfare gain area and the new social optimum output resulting from successful government intervention in the market for nursery places.
Diagram needed. Open the original question paper for the diagram
The impact of the flower industry on workers in the fishing industry is an example of:
Explain one measure the Kenyan government could use to reduce the impact of water extraction from Lake Naivasha.
With reference to the statement above explain what is meant by ‘diminishing marginal utility’.
If the price of an “all you can eat buffet” fell from £8.99 to £6.99, which one of the following is likely to happen?
What is the expected percentage change in the quantity of petrol demanded if the price elasticity of demand is –0.2?
The price elasticity of demand for petrol is –0.2. Explain the change to the total revenue of petrol stations as a result of cutting their prices.
Case study · The market for housing
With reference to Figure 1, explain one possible reason for the differences in price elasticity of supply of new housing between countries.
Case study · The market for housing
With reference to Extract A, assess the likely impact of the Help to Buy scheme on the market for rented properties in the UK.
Case study · The market for housing
Explain the likely impact on producer surplus of an increase in the demand for housing. Use a diagram to illustrate your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for housing
With reference to Figure 2, calculate the percentage change in house prices between the first quarter of 2009 and the first quarter of 2015. You are advised to show your working.
Case study · The market for housing
With reference to Figures 1 and 2 and your own knowledge, discuss the functions of the price mechanism in allocating housing.
Case study · The market for housing
Evaluate the likely microeconomic effects of government intervention in the UK housing market.
Case study · The market for housing
Evaluate the case for government provision of goods and services such as flood defence schemes or housing.