AS & A Level Economics 9708/12 Exam Overview

General Information

• Format: Paper 1 AS Level Multiple Choice
• Date: May/June 2023
• Duration: 1 hour
• Questions: 30 multiple choice questions
• Materials Needed:
  • Multiple choice answer sheet
  • Soft clean eraser
  • Soft pencil (type B or HB recommended)

Instructions for Candidates

• Answer all questions on the multiple choice answer sheet.
• Each question has four options: A, B, C, D.
• Choose the correct answer and record it in soft pencil.
• Write your name, centre number, and candidate number on the answer sheet.
• Avoid using correction fluid and writing on bar codes.
• Calculate as needed.

Key Topics and Sample Questions

Factors of Production

• Question on the first factor needed to set up a new business (Options: Capital, Enterprise, Labour, Land).

Labour Market Dynamics

• Impact of changes in the labour market on the production possibility curve.

Characteristics of Mixed Economies

• Distinguishing features of a mixed economy (Role of government in pricing, taxation, preventing excessive profits, providing services).

Division of Labour

• Expected outcomes from the division of labour (cost, motivation, productivity, quality).

Price Functions in Resource Allocation

• Role of price in showing consumer choice and influencing market competitiveness.

Substitutes in Consumption and Production

• Identifying substitutes that are relevant both in consumption and production (e.g., barley and cotton).

Oil Consumption and Production

• Analysis of oil shortage impacts across different countries.

Cross Elasticity of Demand

• Calculating changes in demand and price using cross elasticity concepts.

Nature of Goods and Price Changes

• How price changes influence demand for different types of goods (inferior vs. normal).

Taxation in Supply Curves

• Understanding the impact of specific taxes on supply curves and tax revenue distribution.

Price Elasticity of Supply

• Examining how elasticity varies along a firm's supply curve.

Market Equilibrium and Disequilibrium

• Identifying causes and consequences of market disequilibrium.

Income Elasticity of Demand

• Evaluating expenditure changes with income variations for different goods.

Government Policies on Merit Goods

• Effectiveness of pricing and subsidy policies in enhancing merit goods consumption.

Balance of Payments Analysis

• Interpreting trade balance and service export values from balance of payments data.

Aggregate Demand & Supply Analysis

• Effects of price level changes on aggregate demand in an economy.

Circular Flow of Income

• Directions of flows in a two-sector model of the economy.

Types of Unemployment

• Solutions for different unemployment types (technological, cyclical, frictional, structural).

Policies Affecting Balance of Payments

• Policies to adjust current account surpluses.

Inflation Impacts

• Groups benefiting from high inflation (exporters, fixed income earners, debt holders).

Terms of Trade Influences

• Factors that change a country's terms of trade (raw materials prices, inflation, exchange rate).

Comparative Advantage and Specialisation

• Changes in output stemming from specialisation based on comparative advantage.

Monetary Policy Effects

• Outcomes of contractionary monetary policy on investment and inflation.

Deficit Reduction in Secondary Income Accounts

• Effective policies for reducing secondary income deficits.

Supply-side Policies

• Addressing cost-push inflation through long-term supply-side strategies.

Economic Growth Conditions

• Necessary conditions for economic growth enhancing income and consumption per capita.