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2
1 Which factor of production is needed first in
order
A to set up a new business?
B
capital
C
enterprise
D
labour
land
2 Assuming nothing else changes, which change in an
production possibility curve
economy’s labour market will cause the
toan
A shift to the left?
increase in worker
B an increase in the
immigration
C an increase
retirement agein labour
D an increase in the
productivity
school leaving age
3 What is not a characteristic of a
mixed
A Theeconomy?
government has no role
B The
in government
setting prices. manages
C The government
taxation rights. prevents firms from
D The government
earning provides services not
excessive profits.
provided by the private sector.
4 What is not likely to result from the
useA of division ofinlabour?
a decrease
B an increase
average costs in
C an increase in
motivation
D an improvement in quality of
productivity
the final product
5 Price plays a number of functions in the
allocation of resources.
Which statement best illustrates the function that relies upon
as the
consumer choice (sometimes known
A
incentivising
A price fall can show consumers that a good
B
is A price fallless
function)?
becoming tends to persuade some producers not to
popular.
C A price
stay in therise means
market for consumers
the good. cannot afford
D A price rise tends
to buy so much of a good.to reduce
competitiveness in the market for a good.

© UCLES 2023 9708/12/M/J/23

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