Preparing For The last battle

Prepare for the Last Battle

​Economics - By. Patrisia Novianti

The test scope

International AS Level Economic

• The economic problem and methodology

• How markets work

• Production, Cost, Revenue and Profit

• Competitve and Concentrated Market

• Market Failure

• Measurement of macroeconomic

• How Macroeconomics works

• Economics performance

• Macroecomomic policy

The test scope

International A2 Level Economic

• The objectives of individual and firm

• Perfect competition, imperfectly competitive markets and monopoly

• The labour market

• Poverty and inequity

• Globalisation and trade

• The balance of payments, exchange rates and financial markets

• Economic growth and development

Open Ended

What is the basic economic problem?

Multiple Choice

Where decisions about what to produce, how to produce it and who should benefit are taken by government

• Free market Economy

• Centrally planned Economy

• Mixed Economy

Multiple Choice

This table shows the demand and supply per week for boxes of popcorn sold at a cinema.  Demand is shown before and after a fall in the price of cinema tickets. What is the change in the equilibrium price?

• 1 euro

• 2 euro

• 3 euro

• 4 euro

Multiple Choice

This figure is shows the supply curve for a good. Which one of the following is most likely to cause a movement from point X to point Y on the supply curve?

• An indirect tax on the good    

• Higher wages paid to workers producing the good    

• Higher spending on advertising the good   

• Increased productivity of labour

Multiple Choice

This figure is shows the demand curve (Demand) and the supply curve (Supply) for bus travel within a city.  The initial market equilibrium price is P. To reduce pollution, the city council pays bus companies to provide bus travel free of charge.  As a result of this policy, consumer surplus will increase by the area

• FGH

• QHJ

• OFHJ

• OPHJ

Multiple Choice

The table shows data relating to the price index of an economy. What is the weighted price index in Year 2?  

• 104.9    

• 105.7    

• 117.0    

• 317.0  

Multiple Choice

The figure shows two aggregate demand (AD1 and AD2) curves and two long-run aggregate supply (LRAS1 and LRAS2) curves for an economy. All other things being equal, which one of the following is the most likely explanation  for the movement of the economy from E1 to E2?

• An increase in net foreign investment by firms following a reduction  in the rate of inflation    

• An unexpected reduction in the rate of interest following a fall in the rate of inflation    

• A decline in the capital stock resulting from a significant decline in bank funding for business investment    

• The growth of government borrowing to fund increased expenditure  on infrastructure

Multiple Choice

The diagrams below show the initial aggregate demand (AD1), short-run aggregate supply (SRAS1) and long-run aggregate supply (LRAS1) curves for an economy.  The economy experiences a significant negative supply-side shock due to the collapse of airlines and shipping companies.  All other things being equal, which one of the following diagrams shows the most likely impact of this shock on the economy?

Multiple Choice

The figure shows the cost and revenue curves for a firm. At which level of output will the firm make normal profits?

• OE

• OF

• OG

• OH

Multiple Choice

In 2020, the Central Bank of Nigeria decided to change the fixed exchange rate of its currency, the naira, to the US Dollar from 307 naira : 1 dollar to 360 naira : 1 dollar.  This is known as

• appreciation

• depreciation

• devaluation

• revaluation