Question No.

Sub Question Question

did not agree with the proposal and increased its
1 output by 4%. Saudi Arabia responded by increasing
a) its output
Define what by is
20%.
meant Thebyresult of this disagreement was
a cartel.
they engage in collusion with the cartel.’
b) and the what
US have different proportions
Explain the term collusion meansofinfixed costs
the context
c) and variable costs.
Discuss, with the use of AD/AS diagrams, how Russia
d) Analyse
and Saudi why the fall
Arabia areinlikely
the price
to beofable
oil may have ato
to respond
item as the price
the fall in oil prices. increases.
2
Discuss,
and average withrevenue
the use of and indifference
their role incurve analysis,the
determining
3 a)
output
Discussand theprofit of a profit
significance of maximising
economies of firm in a for the
scale
b) Explain how the problems of climate change, such as
survival of firms.
4 a) global warming, may be regarded as a consequence
Evaluate
of resource twomisallocation.
policies a government may implement to
b) of supply
reduce theand demand
impact are leftchange.
of climate to determine wages
5 without government interference.
Distinguish
Discuss withbetween
the use the characteristics
of diagrams, of developed
whether this
6 a)
(high-income) and developing (low-income)
Discuss whether gross domestic product (GDP) countries.
is the
b)
best measure of the standard of living.
Explain the relationship between the Keynesian
7 a) Discuss
demand whether
for money monetary
and the policy
rate ofalone is sufficient for
interest.
b) a government to achieve its macroeconomic aims
simultaneously.
QIMG Reference Answer
9708/42/M/J/22/1
collectively (1) to raise price or limit output (1)
9708/42/M/J/22/1a which benefits the firms.
to reduce competition/control the market (1
9708/42/M/J/22/1b Accept price leadership
* If the price remains above as tacit
AVCcollusion.
but below (1
9708/42/M/J/22/1c mark)
ATC a USRussia
well can
between andstill make abecause
S Arabia contribution
of to
9708/42/M/J/22/1d fixed costs, reducing losses.
budget surplus/deficit (1 mark) (1 mark)
effect
Russiaofchoses
the change in price on
expansionary FPthe
(1 quantity
mark)
9708/42/M/J/22/2 and links the two,
demanded due to to
thedetermine profits
size and sign of in
the SE
9708/42/M/J/22/3a perfect competition.
conclusion
L3 (7–8 marks):is reached
For anfor 12/13 which
answer marks.refers
9708/42/M/J/22/3b
L3 (7–8 marks):
misallocation. For an answer which
9708/42/M/J/22/4a
L3 (7–8 effects.
income marks): For an answer which explains
9708/42/M/J/22/4b statement is made.
L4 (9–13 marks): For an answer which
9708/42/M/J/22/5 L3 (14–17
between three marks): For an
or more answer which
characteristics.
9708/42/M/J/22/6a analyses
L3 (7–8 marks): For an answerand
the effects of supply demand
which on
explains
measure.
9708/42/M/J/22/6b and analyses
L3 (7–8 marks): theFor
relationship
an answerbetween
which two
them
analysesto the
therate
useofofinterest.
real GDP per capita as a
9708/42/M/J/22/7a
L3
macroeconomic aimsanand
(7–8 marks): For answer which of
the impact explains
an
9708/42/M/J/22/7b
alternative policy are compared. An
 Image for Marks
Guidance AIMG Subject Code Chapter Topic
Guidance Allocated
9708
2 9708 7 7
3 9708 7 7
7 9708 7 7
8 9708 9 1
25 9708 7 2
12 9708 7 6
13 9708 7 5
12 9708 7 4
13 9708 7 3
25 9708 8 3
12 9708 11 3
13 9708 11 3
12 9708 9 4
13 9708 11 1
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