Suggested paper (first)

Q1

(a) Describe how a public corporation differs from a public limited company. [2]

(b) Explain two factors that influence the size of a firm. [4]

(c) Analyze how a business can use the concept of price elasticity of demand to decide whether or not to lower its prices. [6]

(d) Discuss whether more competition in an industry would benefit consumers. [8]

Q2

(a) What is the difference between absolute poverty and relative poverty? [2]

(b) Explain two economic advantages of a fall in unemployment. [4]

(c) Analyze how fiscal policy may reduce unemployment. [6]

(d) Discuss whether economic growth always results in higher living standards. [8]

Q3

(a) Describe what is meant by a country’s inflation rate. [2]

(b) Explain the factors that influence a country’s birth rate. [4]

(c) Differentiate between perfect competition and monopoly [6]

(d) Can international trade be beneficial to the society (8)

Q4

(a) Describe two aims of government economic policy, other than balance of payments stability. [2]

(b) Explain why a country may have a trade in goods (visible trade) deficit but still have a current account surplus in its balance
of payments. [4]

(c) Analyze how a fall in a country’s exchange rate may reduce a current account deficit in its balance of payments. [6]

(d) Discuss whether a government should protect its industries from foreign competition. [8]

Q5

(a) What is the difference between equilibrium price and disequilibrium price? [2]

(b) Explain why the demand for a product may rise in one country but fall in another country. [4]

(c) Analyze the different factors a person considers at the time of choosing an occupation (6).

(d) Discuss whether an advertising campaign would increase the profit earned by a firm. [8]

Q6
(a) Describe how resources are allocated in a market economy. [2]

(b) Explain why the social costs of car use are greater than the private costs. [4]

(c) Using a demand and supply diagram, analyze the effect of a tax on petrol on the market for petrol. [6]

(d) Discuss whether bus travel/public transport should be subsidized. [8]

Q7

(a) Explain what is meant by a trade union. [2]

(b) Trade unions are not often found in small enterprises. How significant might this be as a factor which influences someone in
choosing to work for a small enterprise? [4]

(c) Analyze why do small enterprises continue to exist as an economy develops and expands? [6]

(d) Discuss the effect that the activities of a trade union might have on an economy. [8]

 Remember it is just a suggested paper

 Finality rests with ALLAH

Good luck

Suggested paper (second)

(a) Using examples, describe the difference between direct and indirect taxes. [4]

(b) How might a reduction in taxation help any two macro-economic aims of a government? [6]

(c) Why might a government wish to increase employment opportunities? [5]

(d) Discuss what might be the consequences of unemployment. [5]

Q2

(a) Explain what is meant by specialization and in what circumstances it might occur. [3]

(b) Some countries use measures to protect home industries.

(c) Explain, with the use of one example, progressive tax, regressive tax and proportional tax [6]

(d) For many countries international trade involves using their natural resources to sell to other countries.

Discuss whether it is wise for a country to use (exploit) its natural resources rather than conserve them. [5]

Q3

(a) Explain why different income groups might have a different pattern of spending and saving [5]

(b) Discuss what might influence government spending. [5]

(c) Outline the functions of a central bank. [4]

(d) Analyse how a central bank might influence consumer saving. [6]

Q4

(a) Explain, using demand and supply analysis, why might a country want to seek new markets when it increases its production
natural resources. [4]

(b) Distinguish between fixed and variable costs and consider which is likely to have the highest proportion in the production
and distribution of oil. [6]

(c) Explain what is meant by a substitute good and a complementary good and give an example of each connected with air
travel. [4]

(d) Explain what is meant by price elasticity of demand and use this concept to discuss what might happen in the market for oil
if the price of oil was raised. [6]

Q5
(a) Explain how can living standards be measured and suggest which method is more reliable one.[9]

(b) Explain the factors that might affect the price elasticity of supply of any product (4)

(c) Describe how a person’s income is likely to change during their life. [3]

(d) Use examples to distinguish between private sector and public sector investment spending. [4]

Q6

(a) Discuss what might determine why one job is paid more than another. [7]

(b) Explain why investment spending is important for an economic growth. [6]

(b) What is the difference and similarities between a private and public limited company [7]

Q7

(a) Explain how economic growth might change the relative importance of the primary, secondary and service sectors. [5]

(b) What is meant by inflation and explain how inflation is measured. [7]

(c) Discuss why governments might be concerned to keep the rate of unemployment low. [4]

(d) Explain why developing countries such might need the intervention of foreign companies(MNCs). [4]

 Remember it is just a suggested paper

 Finality rests with ALLAH

Good luck

Suggested paper (third)

(a) Is intervention by a foreign multi-national always beneficial for a country? [6]

(b) Why do all countries face the basic economic problem? [3]

(c) Define opportunity cost and explain why it is an important concept for economists. [3]

(d) Why might some workers not belong to a trade union? [4]

Q2

(a) Describe what is meant by economic development. [2]

(b) Explain what is meant by (i) a private cost, (ii) a private benefit, (iii) an external cost and (iv) an external benefit? [4]

(c) For each of the following, identify one example of (i) a private cost, (ii) a private benefit,(iii) an external cost and (iv) an
external benefit that might be involved in the building of an air port [4]

(d) Why might a government want to involve private companies in a motorway project? [4]

(e) Discuss how nearby communities are likely to be affected by the building of a motorway. [6]

Q3

(a) Discuss whether firms always benefit from growing larger. [6]

(b) State four economic aims a government may have, other than economic growth. [4]

(c) Describe the policies that a government might adopt to increase the rate of economic growth in its country. [5]

(d) Describe what an economist would need to know to decide whether a country should be classified as developed or not. [5]

Q4

(a) Explain what influences a country’s population growth rate. [4]

(b) Discuss how country’s level of poverty can be decreased. [4]

(c) Explain why countries specialize in producing different goods and services. [4]

(d) Using a production possibility curve, explain what is meant by opportunity cost. [4]

(e) What is meant when it is stated that money performs the functions of (i) a medium of exchange and (ii) a store of
value?[4]

Q5

(a) Explain how the external value of a currency is determined in a floating or flexible exchange rate system. [4]

(b) Describe how a government maintains the external value of its currency in a fixed exchange rate system. [4]
(c) Explain why a government might want the external value of its currency to fall. [4]

(d) Discuss to what extent a floating exchange rate is preferable to a fixed exchange rate system. [8]

Q6

(a) Explain how fiscal policy can be used to encourage economic growth. [4]

(b) Discuss to what extent supply-side policies are likely to be more effective than monetary policies in stimulating
economic growth. [4]

(c) Describe two features of a co-operative. [4]

(e) Describe the principle of profit maximization. [3]

(c) Discuss which are the most important market failures in your country. [5]

Q7

(a) Describe the structure of the current account of the balance of payments. [3]

(b) Explain what is meant by a current account deficit on the balance of payments. [3]

(c) Explain why a large current account deficit on the balance of payments is usually regarded as a serious problem.
[4]

(d) Discuss which is the best way to reduce a large current account deficit on the balance of payments. [4]

(e) Discuss whether deflation is a greater problem than inflation. [6]

 Remember it is just a suggested paper

 Finality rests with ALLAH

Good luck