CIE Econs IGCSE Diagrams 1

The diagram shows a production possibility curve (PPC) for an economy that can produce cotton and cars. The economy is at point Q.

There is improved technology that can only be used in the production of cars.

How would this be represented on this diagram?

• a movement from Q to W

• by a movement from Q to X

• by a movement from Q to Y

• by a movement from Q to Z

The diagram shows market demand and supply curves.

To what extent is the market in disequilibrium at price P3?

• OQ1 – OQ2

• OQ1 – OQ3

• OQ2 – OQ4

• OQ3 – OQ5

Which combination of influences would increase the level of borrowing by a household?

• A

• B

• C

• D

The graph shows women’s wages as a percentage of men’s wages in year 1 and year 2.

Which statement is shown by the graph to be true?

• Younger women earn more than older women.

• Women’s wages remain about the same between the ages of 40–50.

• In year 2, all women were earning more than men.

• In year 2, women were earning a higher percentage of men’s wages than in year 1.

People’s income decreases.

How is the proportion spent on food and leisure likely to change?

• A

• B

• C

• D

The table shows total fixed and total variable costs at different levels of output for a firm.

At which level of output is average total cost lowest?

• A

• B

• C

• D

The following information refers to a firm producing shoes.

At which level of output does the firm maximise profits?

• A

• B

• C

• D

The table shows selected indicators for the labour market of an economy in 2014 and 2018.

According to the table, what is the most likely type of unemployment in 2018?

• cyclical

• frictional

• seasonal

• structural

The table gives information about three economic indicators in four countries.

What may be concluded from this information?

• Countries with higher inflation have higher interest rates.

• Countries with higher interest rates have lower unemployment.

• The country with the lowest inflation had the highest unemployment.

• The country with the lowest unemployment had the lowest inflation.

Which changes usually result when a country develops and is able to provide free healthcare and good living conditions?

• A

• B

• C

• D