- Messages
- 1,260
- Reaction score
- 676
- Points
- 123
Note: Guess means something predicted based on experience and evaluation skills. It can never be the actual keep it in mind. According to my speculation Examiner will ask the same questions but with different statements. But the same knowledge will be tested InshaAllah. Those who are very week in studies are advised to learn at least Q.1, 3 and 5.
V.V.V.V.V Important questions 1, 3 and 5. Don’t forget to revise them. I wish all of you best of luck!
and that its central bank, through its interest rate policy, had prevented an
increase in inflation despite a sharp rise in oil prices.
(a) Explain what might cause unemployment. [12]
(b) Discuss how interest rate policy might prevent a rise in inflation. [13]
2. (a) Explain the factors influencing the level of investment in an economy. [10]
(b) Discuss the extent to which national income is determined by private
investment. [15]
3. Discuss how far the GDP figure might be used to determine whether one country
has higher living standards than another. [25]
4 Airbus, a large aircraft manufacturing company, announced in 2007 that its goal
was to increase its $475 million research budget by 25 % in order to try to develop
a more environmentally friendly aircraft that had lower fuel consumption.
(a) Explain why Airbus is likely to be in an imperfect rather than a perfect market
structure. [10]
(b) Economics textbooks sometimes criticise firms in imperfect competition as being
against the public interest. What does this mean, and how far does the Airbus
announcement prove the textbooks wrong? [15]
5. Discuss what might cause inequalities in wage rates in an economy. [25]
6. In 2009 there were huge fires in Australia which destroyed much property and
countryside.
The government promised to allocate a large amount of money and resources to
help with the restoration of the area.
(a) With the help of diagrams explain what is meant by efficiency in the use of
resources. [12]
(b) Discuss the economic implications of the government’s approach to the situation. [13]
7. Most governments aim for full employment and stable prices. Which of those two aims should your government seek to achieve in the coming year and how might this choice affect the other aim? [25]
V.V.V.V.V Important questions 1, 3 and 5. Don’t forget to revise them. I wish all of you best of luck!
Section B
1. In 2006 it was reported that a country’s unemployment rate had remained steady and that its central bank, through its interest rate policy, had prevented an
increase in inflation despite a sharp rise in oil prices.
(a) Explain what might cause unemployment. [12]
(b) Discuss how interest rate policy might prevent a rise in inflation. [13]
2. (a) Explain the factors influencing the level of investment in an economy. [10]
(b) Discuss the extent to which national income is determined by private
investment. [15]
3. Discuss how far the GDP figure might be used to determine whether one country
has higher living standards than another. [25]
4 Airbus, a large aircraft manufacturing company, announced in 2007 that its goal
was to increase its $475 million research budget by 25 % in order to try to develop
a more environmentally friendly aircraft that had lower fuel consumption.
(a) Explain why Airbus is likely to be in an imperfect rather than a perfect market
structure. [10]
(b) Economics textbooks sometimes criticise firms in imperfect competition as being
against the public interest. What does this mean, and how far does the Airbus
announcement prove the textbooks wrong? [15]
5. Discuss what might cause inequalities in wage rates in an economy. [25]
6. In 2009 there were huge fires in Australia which destroyed much property and
countryside.
The government promised to allocate a large amount of money and resources to
help with the restoration of the area.
(a) With the help of diagrams explain what is meant by efficiency in the use of
resources. [12]
(b) Discuss the economic implications of the government’s approach to the situation. [13]
7. Most governments aim for full employment and stable prices. Which of those two aims should your government seek to achieve in the coming year and how might this choice affect the other aim? [25]
!!! thanks sir!
