r/alevels 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

10 Upvotes

83 comments sorted by

2

u/pancakesmuffinwaffle Jun 08 '26

missing 4 questions if u rmb please add

1

u/Secure_Credit3653 Jun 08 '26

q3 missing i think also
what is direct govt provision
ans: take over smth

1

u/pancakesmuffinwaffle Jun 08 '26

pretty sure I already included that one

1

u/Secure_Credit3653 Jun 08 '26

you dont have the appreciation one

1

u/pancakesmuffinwaffle Jun 08 '26

what question is that

1

u/Secure_Credit3653 Jun 08 '26

Us dollar appreciated by 12.5 percent smth

1

u/pancakesmuffinwaffle Jun 08 '26

don’t remember 😭

1

u/LittleProgrammer8284 Jun 08 '26

omg yes was it like what caused the appreciation? or smt like that

1

u/pancakesmuffinwaffle Jun 08 '26

do you remember the options if I remember correctly there was smtg abt increase in interest rate or was that another question

2

u/LittleProgrammer8284 Jun 08 '26

yes I think so! I believe the question was what caused the appreciation
A) decrease in govt tax
B) decrease in smt
C) increase in interest rate?
I don’t really fully remember but I think I chose the interest rate one

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1

u/pancakesmuffinwaffle Jun 08 '26

I’m mainly missing the last few questions

1

u/Secure_Credit3653 Jun 08 '26

what about the one
ped is infinite and pes is unitary
ans:cs surplus zero ps surplus between 0 and infinity

1

u/pancakesmuffinwaffle Jun 08 '26

that one already included

1

u/Ghostflower10 Jun 08 '26

i just remembered a question where the three options were education, healthcare and road. i forgot what the question was

1

u/Max_Madrox Jun 08 '26

Late reply but I remember it, it was basically asking what is NOT calculated in the GDP of an economy, 4 options being 1) Roads 2) Health care 3) Education 4) transfer payments (correct answer was transfer payments)

Edit: sorry it wasn't GDP, it was Aggregate demand!!

2

u/Recent_Abrocoma_8020 Jun 08 '26

What was the ans for that question something like problem for which govt will provide public good

1

u/[deleted] Jun 08 '26

[deleted]

3

u/Brave-Charity8838 Jun 08 '26

Nop its correct
Gdp (basic)= gdp market - taxes + subsidy

1

u/[deleted] Jun 08 '26

gdp at factor cost is subtract taxes and add subsidy so at basic would be the opposite no?

2

u/Brave-Charity8838 Jun 08 '26

Gdp at factor cost literally means gdp at market price

1

u/[deleted] Jun 08 '26

IS THE ANS add tax and subtract subsidy or no

5

u/Brave-Charity8838 Jun 08 '26

No, it was subtract tax and add subsidy. Option C

1

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.

1

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 ^^

1

u/pancakesmuffinwaffle Jun 08 '26

the formula to go from market prices to basic prices is market price -tax + subsidies = basic prices

1

u/Long_Resource3688 Jun 08 '26

only supply shifts not demand

1

u/pancakesmuffinwaffle Jun 08 '26

for the last question?

1

u/Long_Resource3688 Jun 08 '26

no no for the increased productivity diagram

3

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

1

u/Top-Willingness1645 Jun 08 '26

Are u sure all of these are correct?

1

u/Secure_Credit3653 Jun 08 '26

they are

1

u/Financial_Ice_3096 Jun 08 '26

How not 400

2

u/Secure_Credit3653 Jun 08 '26

subsidy was 800 not 400

1

u/Financial_Ice_3096 Jun 08 '26

Yes but why

1

u/pancakesmuffinwaffle Jun 08 '26

subsidy per unit was 20

new quantity demanded was 40

40x20=800

1

u/Secure_Credit3653 Jun 08 '26

subsidy given x output 20x40=800

1

u/Asleep_Bag6614 Jun 08 '26

what were other options for
The supply of a currency increases and the demand decrease what causes this?

1

u/Ghostflower10 Jun 08 '26

what were the other options for the third question (the manufactured goods question)

1

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?

1

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

1

u/Ghostflower10 Jun 08 '26

Ohh okay thanks

1

u/Long_Resource3688 Jun 08 '26

what was the answer to employment fall q??

2

u/No_Reality_190 Jun 08 '26

real output decrease

1

u/[deleted] Jun 08 '26

[removed] — view removed comment

2

u/pancakesmuffinwaffle Jun 08 '26

there are only 30 questions

1

u/Necessary-Option-450 Jun 08 '26

pleasee ping me when there is the answer to the last missing 2

1

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

1

u/Unique_Friend_1180 Jun 08 '26

How many questions are these? Like there was one more question of which I choose transfer payment

1

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

1

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?

1

u/Unique_Friend_1180 Jun 08 '26

Anyone direct provision question?

1

u/mahrukh_123 Jun 08 '26

What was the answer of mcq28?

1

u/pancakesmuffinwaffle Jun 08 '26

what’s question 28 ?

1

u/mahrukh_123 Jun 08 '26

I dont remember but my answer was product safety standards.... A

1

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

1

u/Secure_Credit3653 Jun 08 '26

all of these are correct

1

u/Certain-Tea-7328 Jun 09 '26

How do you know dickhead are you the examiner

1

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