PAPER 2: SECTION 3 & 4 ECONOMICS MARKS: 90

Name: __________________ Batch: ________ Date: _______________

DURATION: 2h 30 min

Paper 2 Theory

INSTRUCTIONS OUT
Q. NO MARKS
OF
• Answer all questions.
1 20
• Use a black or dark blue pen.

• Write your name, centre number and candidate number in the boxes at 2 20
the top of the page.
3 20
• Write your answer to each question in the space provided.
4 30
• Do not use an erasable pen or correction fluid.

• Do not write on any bar codes. TOTAL 90

• You may use an HB pencil for any diagrams, graphs or rough working.

INFORMATION

• The total mark for this paper is 90.

• The number of marks for each question or part question is shown in brackets [ ].

• No marks will be awarded for using brand names of software packages or hardware

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PAPER 2: SECTION 3 & 4 ECONOMICS MARKS: 90

1. (a) Identify two characteristics of money. [2]

(b) Explain two reasons why young workers may save less than middle-aged workers.[4]
(c) Analyse, using a demand and supply diagram, how an increase in demand for
restaurant meals may affect the wage rate that chefs are paid. [6]
(d) Discuss whether or not trade unions benefit workers. [8]

2. (a) Define a state-owned enterprise. [2]

(b) Explain why the production of cars may increase whilst the productivity of car
workers may fall. [4]
(c) Analyse, using diagrams, how a rise in output affects total fixed cost and average
fixed cost. [6]
(d) Discuss whether or not a monopoly benefits consumers. [8]

3. (a) Define a private good. [2]

(b) Explain what is meant by full employment. [4]
(c) Analyse the reasons why governments impose taxes. [6]
(d) Discuss whether or not an increase in the rate of interest will reduce consumer
expenditure. [8]

4. (a) Define deregulation. [2]

(b) Define real GDP. [2]
(c) Define cyclical unemployment. [2]
(d) Define inflation. [2]
(e) Explain two consequences of a recession. [4]
(f) Analyse how a cut in the rate of interest could reduce unemployment. [6]
(g) Discuss whether or not unemployment is harmful. [6]
(h) Discuss whether or not workers suffer as a result of inflation. [6]

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