Better Essays

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…

[6] (d) Identify the two policy approaches suggested by economists in the article and discuss whether there is a conflict between them. [8] © 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. [25] 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. [12] (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. [13] 4 (a) Discuss whether it is always advantageous for a firm to grow in size. [12] (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. [13] 5 In imperfect competition, labour markets can lead to worker exploitation in terms of the wage rates they receive compared with

Get Access
Get Access