Jun 11 Past Paper Economics

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Centre Number Candidate Number
Write your name here
Surname Other names
Total Marks
Paper Reference
Turn over
*P38737A0124...

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Some questions must be answered with a cross in a box . If you change your mind about an
answer, put a lin...

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(vi) It is always more difficult to increase the supply of agricultural goods than
manufactured ...

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(ii) In 2009 Russian tea experts forecast that as incomes in Russia fall due to
recession people will drin...

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(c) Figure 1b shows the age distribution of the population of Russia in 2009 and the
projected a...

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(ii) Which of the following is the most likely consequence of an ageing
population?
A Demand for toys will...

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Question 2
Mobile phone service providers supply the infrastructure (telephone masts) and
servic...

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(iii) The merger of T-Mobile and Orange is an example of
A a horizontal merger
B a vertical merger
C diver...

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(vii) Do mergers between firms producing similar goods and services always
benefit consumers? Gi...

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(b) Cars produce negative externalities.
(i) Identify one negative externality produced by cars.
(1)
......

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(v) With reference to both methods identified in (iv), which is likely to be better
at reducin...

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Question 3
Figure 3a shows the economic growth in Ireland in 2007 and 2008.
Figure 3a
Ireland: Economic ...

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(iii) Identify two reasons why governments attempt to increase economic growth.
(2)
.............

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Figure 3b
Ireland: Government expenditure
and revenue
millioneuros
80000
70000
60000
50000
40000
30000
2...

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(iv) Briefly explain one reason why government revenue in Ireland fell during the
recession of...

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(c) Figure 3c
Tax rates in Bulgaria and Turkey 2009
Taxrates%
40
35
30
25
20
15
10
5
0
Valued Added Tax ...

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(iii) Do the advantages of indirect taxes outweigh their disadvantages? Explain
your answer.
(...

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Question 4
Figure 4a shows the exchange rate of the Euro (€) in terms of Kenyan Shillings (KSH).
Figure ...

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Complete the table below to indicate how each change might affect the value of a
currency.
Changes affec...

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(ii) When the exchange rate of a currency depreciates, the balance of trade
improves. Do you agree with ...

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Figure 4b
Kenya’s international debt 2009
bnKSH
Euro Japan UK US Others
countries
170.0
160.0
150.0
140....

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(iii) To what extent is international borrowing by a developing country likely to
lead to an increase in...

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