AS · June 2017 · Paper 1
Explain, using marginal analysis from the table above, the concept of opportunity cost. (You may use the last column in answering the question.)
Which one of the following is the most likely effect of an economy producing more capital goods?
Define the term ‘base year’.
Calculate the index numbers for 2011 and 2012, using 2010 as the base year.
The percentage change in wheat production from 2014 to 2015 was:
Define the term ‘subsidies’.
The most likely effect of cutting subsidies for the installation of solar panels is to:
Annotate the diagram below to show the effect of removing the solar panel installation subsidy on the equilibrium price and quantity.
Diagram needed. Open the original question paper for the diagram
Explain how the price mechanism responds to excess supply in a free market.
Which one of the following is likely to result in an increase in carbon emissions?
Explain why reducing the tuition fee cap may result in excess demand for university places.
Which one of the following statements is correct?
Case study · The market for cigarettes
Explain why ‘bans on tobacco advertising’ (Extract A, line 7) may result in a decrease in the revenue of tobacco firms. Include a supply and demand diagram in your answer.
Diagram needed. Open the original question paper for the diagram
Case study · The market for cigarettes
With reference to the information provided and your own knowledge, assess the view that tobacco consumers switching to e-cigarettes is an example of rational behaviour.
Case study · The market for cigarettes
Explain how changes in the price of tobacco cigarettes may affect the demand for e-cigarettes over time.
Case study · The market for cigarettes
With reference to Extract A, lines 11–13, calculate the price elasticity of demand for tobacco cigarettes in high-income countries and in low-middle-income countries. You are advised to show your working.
Case study · The market for cigarettes
With reference to Figure 1, assess the likely reasons for the difference in price elasticity of demand for tobacco cigarettes and e-cigarettes.
Case study · The market for cigarettes
Evaluate the possible advantages of a free market approach to cigarette consumption.
Case study · The market for cigarettes
Evaluate the impact of government intervention in the cigarette market.