w w ap eP m e tr .X w om .c s er UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level 9708/43 ECONOMICS Paper 4 Data Response and Essay (Supplement) May/June 2011 2 hours 15 minutes Additional Materials: Answer Booklet/Paper * 0 4 1 8 9 1 9 9 5 0 * READ THESE INSTRUCTIONS FIRST If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet. Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A …show more content…
 (d) Identify the two policy approaches suggested by economists in the article and discuss whether there is a conflict between them.  © UCLES 2011 9708/43/M/J/11 [Turn over 4 Section B Answer two questions. 2 The use of cars causes market failure. To achieve an efficient use of resources it would be better if governments intervened to affect both the production and the use of cars. Explain the meaning of the terms ‘market failure’ and ‘the efficient use of resources’ and analyse whether economic theory can be used to support this argument.  3 (a) Discuss whether demand schedules and budget line diagrams are similar in the way they represent the effect of (i) a rise in the price of a good (ii) a rise in a consumer’s income.  (b) Analyse what is meant by the equi-marginal principle of consumer demand and whether it can be linked to the derivation of a market demand curve.  4 (a) Discuss whether it is always advantageous for a firm to grow in size.  (b) Explain the economic theory of profit maximisation for a firm and consider whether firms are likely to follow this theory in fixing their price and output.  5 In imperfect competition, labour markets can lead to worker exploitation in terms of the wage rates they receive compared with
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availability of substitutes, and justify how you determine the price elasticity of demand for your firm’s product. b) Explain the factors that affect consumer responsiveness to price changes for this product, using the concept of price
Throughout this task I will do my best to explain how firms determined to maximize profit do just that. Specifically I will delineate how such firms choose the optimum level of production or output for the goods they produce and how they behave with respect to various elevations of marginal revenue. In my attempt it will be appropriate for me to clarify the definitions of various economic terms in order to assure a proper understanding of my thoughts on this topic, I will provide these definitions throughout.
Explain the meaning of the terms ‘market failure’ and ‘the efficient use of resources’ and analyse
and lead to still greater uses of vehicles. This is tolerable where the population is
This assessment will be an analysis of graphed data and changes in supply and demand for three economic problems. Problem A involves production possibilities for consumer and capital goods, problem B is an evaluation of changes in supply and demand equilibrium, and finally, problem C involves pricing with relevance to supply and demand. Successful completion of this assessment demonstrates proficiency in; applying theories, models, and practices of economic theory, analyzing solutions with support from relevant data, resources, references, and economic principles, analyzing graphed and circular
Competition failure or monopoly may result from natural monopoly where it costs incurred in production becomes lower when only one firm is involved in production than several firms producing the same output. In a monopolist market under-production, higher prices become dominant contributing to market inefficiency. Winston cites cases of misuse of monopoly power can lead to market failures and sometimes may lead to acute shortage of essential commodities (130).
The world today is developing rapidly is every aspect of human life whether be it the technology, money or population. This change in the surroundings has made humankind to worry about the future. The advancement in technology nowadays is more focused towards the optimum utilisation of the exhaustible natural resources. The increase in population has resulted in the increase of the sale of automobiles as well.