ECONOMICS IGCSE - Pull-out

Nolwazi lived in a rural area in Botswana and made baskets to sell to the tourists. The local government gave her a loan to buy a car to take the baskets to the city market. Which factor of production increased?

• Capital

• Enterprise

• Labour

• Land

What, according to the definition of opportunity cost, is sacrificed when a decision is taken?

• An identical alternative

• Any possible alternative

• The least valuable alternative

• The next best alternative

A friend said his French grandmother kept switching off the lights but left the tap running. His Namibian relative left the lights on while shouting at him to turn off the water. Which availability of resources and level of prices would make economic sense of these consumer actions?

• Adequate water supplies in France, Expensive electricity in Namibia

• Cheap electricity in France, Adequate water supplies in Namibia

• Expensive electricity in France, Scarce water supplies in Namibia

• Scarce water supplies in France, Cheap electricity in Namibia

The table shows the value of output for some parts of an economy. Which conclusion may be drawn from these statistics?

• The tertiary sector was the most valuable.

• The value of the primary sector was $25.0 billion.

• The value of the secondary sector was $153.5 billion.

• The value of the secondary sector was worth less than the value of the primary sector.

A government decides that an economy should make more use of the market. Which policy might help to achieve this?

• a decrease in controls on imported goods

• an increase in government ownership of land

• an increase in subsidies to industry

• the fixing of minimum wage levels for workers

The diagram shows an initial equilibrium point (X) in a market and a new equilibrium point (Y). Which combination of changes in demand and supply could have caused the movement from X to Y?

• demand decrease, supply decrease

• demand decrease, supply increase

• demand increase, supply decrease

• demand increase, supply increase

A large supermarket applied to build on land which was an area of natural beauty. The local government allowed the building, even though the natural beauty of the area would be lost, because many jobs would be created and much needed income would be brought to the local community. Which economic ideas cannot be found in the above statement?

• external cost and private enterprise

• free market and the conservation of resources

• opportunity cost and improved standards of living

• public sector and external benefit

For what would price elasticity of demand be used?

• calculating current disposable income

• calculating the rate of price inflation

• estimating changes in a company’s cost

• identifying changes in consumer spending patterns

What is an external benefit when a charge is made for vehicles entering a city centre?

• increased government revenue

• increased traffic

• reduced air pollution

• reduced business activity

In August 2007 the Central Bank of Swaziland increased its interest rate from 9.5% to 10%. Which effect would this be likely to have on producers and consumers?

• producers borrow less, consumers save more

• producers borrow less, consumers spend more

• producers invest more, consumers save more

• producers invest more, consumers spend more