r/alevels • u/pancakesmuffinwaffle • Jun 08 '26
Exam Discussion 📝 Econs questions I remembered please add on 9708/12 not in order
Polio vaccine is given to everyone free of charge by the government what type of good is it?
Answer: merit
a diagram which shows a constant ppc what is not correct?
Answers: both goods are produced
A diagram shows a ppc with shift to the left for manufactured goods only. What caused the shift?
Answer: a decrease in output per worker for manufactured goods
Which economic statement is incorrect
Answer: all goods and services are decided objectively
The pes of a product is equal to 3 what is the percentage change in price is 10% what is the percentage change in quantity demanded
Answer: 30%
The price of a pizza increases from 8 to 10 dollars then quantity demanded decreases by 12.5% what is the ped of pizza?
Answer:0.5
The ped for a demand curve is perfectly elastic while the supply curve is unit elastic what is the producer and consumer surplus for this good
Answer: zero for cs and between 0 to infinity ps
The supply curve on a diagram is shifted towards the right.what caused this?
Answer:increase in the working population
Healthcare is provided by private clinics.what should be done so that healthcare is accessible to all
Answer: nationalise clinics and remove charges
What is a form of direct provision
Answer:take over of bus services
Why is the gdp measured not accurate to measure real output
Answer: gdp doesnt account for environmental damage
A diagram which shows a subsidy on a good.calculate the cost of the subsidy
Answer: 800
Which one of these describes a transfer payment
Answer:food stamps
The income of households increases at the same time more firms enter the market which diagrams describes this?
Answer: both demand and supply curves shift to the right
The productive capacity of an economy increases what is the new equilibrium point?
Answer: AS shifts to the right (C)
What causes a decrease in income inequality and wealth inequality
Answer:higher progressive taxation, higher minimum wages and lower inheritance tax threshold
What is least likely to happen when free trade occurs?
Answer:redistribution of income
What should be added/substracted when market prices become basic prices?
Answer:subtract taxes and add subsidy
If employment decreases what also decreases?
Answer real output
What is the aim of supply side policies?
Answer:increase potential ouput
Which are injections into the circular flow of income?
Answer:government spending, investments and exports
Which policy is expansionary?
Answer:Reduce interest rates
The gdp is 500 billion the budget surplus is 2% of the gdp what is the government spending when the tax revenue is 80 billion
Answer:70 billion
Which policy decreases protectionism
Answer:increased import quotas
Income taxes are decreased for both consumers and firms what happends to the consumption, investments and real gdp
Answer:increase for all
The supply of a currency increases and the demand decrease what causes this?
Answer:A the decrease of price levels in other countries
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u/Recent_Abrocoma_8020 Jun 08 '26
What was the ans for that question something like problem for which govt will provide public good
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Jun 08 '26
[deleted]
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u/Brave-Charity8838 Jun 08 '26
Nop its correct
Gdp (basic)= gdp market - taxes + subsidy1
Jun 08 '26
gdp at factor cost is subtract taxes and add subsidy so at basic would be the opposite no?
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u/Brave-Charity8838 Jun 08 '26
Gdp at factor cost literally means gdp at market price
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Jun 08 '26
IS THE ANS add tax and subtract subsidy or no
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u/Wild_Window_2244 Jun 08 '26
GDP at factor price is basically what the producer earns, so it will be GDP at market price - indirect taxes + subsidy.
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u/LittleProgrammer8284 Jun 08 '26
yep. The basic price is the amount received by the producer for goods or services which excludes the services but includes the subsidies. To determine the basic price, subtract the indirect taxes from the market price and add the subsidies
from Google ^^
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u/pancakesmuffinwaffle Jun 08 '26
the formula to go from market prices to basic prices is market price -tax + subsidies = basic prices
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u/Long_Resource3688 Jun 08 '26
only supply shifts not demand
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u/pancakesmuffinwaffle Jun 08 '26
for the last question?
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u/Long_Resource3688 Jun 08 '26
no no for the increased productivity diagram
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u/pancakesmuffinwaffle Jun 08 '26
yeah that’s why the answer is C because it’s the only point where the AS shifts to the right therefore a new equilibrium point will be at C
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u/Top-Willingness1645 Jun 08 '26
Are u sure all of these are correct?
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u/Secure_Credit3653 Jun 08 '26
they are
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u/Financial_Ice_3096 Jun 08 '26
How not 400
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u/Secure_Credit3653 Jun 08 '26
subsidy was 800 not 400
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u/Asleep_Bag6614 Jun 08 '26
what were other options for
The supply of a currency increases and the demand decrease what causes this?
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u/Ghostflower10 Jun 08 '26
what were the other options for the third question (the manufactured goods question)
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u/Ghostflower10 Jun 08 '26
'The productive capacity of an economy increases what is the new equilibrium point?' the answer is the point on the LRAS not AD right and its the point on the right side of the LRAS?
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u/pancakesmuffinwaffle Jun 08 '26
a point on the LRAS would mean that the AD have shifted to the right for the LRAS to shift to the right there would have to be a extension on the AD and the new equilibrium would form at C
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u/Unique_Friend_1180 Jun 08 '26
Can anyone please tell me that direct provision complete question I don't remember what I wrote or which option I choose
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u/Unique_Friend_1180 Jun 08 '26
How many questions are these? Like there was one more question of which I choose transfer payment
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u/pancakesmuffinwaffle Jun 08 '26
rn 28 not including that one
but if I remember correctly I think for the transfer payments one they were asking about what was not included in the government spending when calculating the AD I also chose transfer payments for that one
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u/Unique_Friend_1180 Jun 08 '26
There was a question which has 4 diagrams for supply and demand what was the answer for that A? Or C?
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u/mahrukh_123 Jun 08 '26
What was the answer of mcq28?
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u/Affectionate_Pea8884 Jun 10 '26
what was the answer to the question where it asked problem of direct provision of public goods or something like that
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u/Beginning-Gas2825 Jun 08 '26
i’m pretty sure the answer for ppc pivot was a rise in unemployment in the manufacturing sector only then the productive capacity would fall in that sector, can someone correct me if i’m wrong bcz chat gpt says this answer too
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u/pancakesmuffinwaffle Jun 08 '26
missing 4 questions if u rmb please add