CIE Econs IGCSE Diagrams 2

The diagrams show the supply curve for an individual grower of tomatoes and for the total market supply of tomatoes.

What explains the similarity of the two curves?

• As costs rise growers need to get a higher price to increase output.

• At the lower prices each grower supplies more tomatoes.

• The profitability per unit is the same for all growers irrespective of output.

• Supply is not always influenced by price.

The table shows figures for the real GDP of a country

A quarter is three months. During which quarters was the country experiencing a recession?

• quarters 1 and 2

• quarters 2 and 3

• quarters 3 and 4

• the entire period

Which country would be classified as the most developed based on the data in the table?

• A

• B

• C

• D

There has been an appreciation of the value of a country’s currency against other currencies.

What effects will this have on prices of imports of raw materials and prices of exports of manufactured goods?

• A

• B

• C

• D

The table shows components of Japan’s current account balance in trillion Yen (¥) for 2011 and 2012.

Which balance improved between 2011 and 2012?

• balance of goods

• balance of services

• balance of primary income

• balance of secondary income

The diagram shows a shift in a country’s production possibility curve (PPC).

What would cause the shift from X to Y?

• a fall in the unemployment rate

• a fall in consumer demand

• a rise in the rate of inflation

• a rise in the size of the labour force

Which are both macroeconomic decisions?

• A

• B

• C

• D

The diagrams show changes in the market conditions for coffee.

Which diagram shows the effect of a poor harvest of coffee beans?

• A

• B

• C

• D

A government owns and runs an airline.

Which combination of ownership and sector is this?

• A

• B

• C

• D

A government is not allowed to increase its military spending.

Government spending is currently at X.

Which diagram illustrates a possible change in government spending?

• A

• B

• C

• D