CIE Econs IGCSE Diagrams 3

Real incomes have risen in a country.

Which situation would definitely have caused this?

• A

• B

• C

• D

What are the effects on price and equilibrium quantity of the imposition of an import tariff on a good?

• A

• B

• C

• D

The diagram shows the production possibility curve (PPC) of a country producing at point T.

The country has an ageing population and decides to allocate more resources to the production of health services.

Which movement shows this change in resource allocation?

• T to S

• T to U

• T to V

• T to W

In 2018 the UK government introduced a tax on the production of sugary drinks.

How would this affect the market for sugary drinks as shown on a demand and supply diagram?

• A

• B

• C

• D

Banks decrease interest rates.

What is likely to be the effect of this on borrowing and saving?

• A

• B

• C

• D

The table shows the costs of a firm.

What is the average total cost if the firm produces 20 goods?

• $1

• $2

• $4

• $80

The table provides information about a country’s labour market.

What is the unemployment rate of this country?

• 15%

• 25%

• 50%

• 75%

Which combination of changes is most likely to result in a fall in living standards in a country?

• A

• B

• C

• D

The table shows a selection of economic data for a country.

What is the current account balance of this country?

• $100 m

• $600 m

• $4500 m

• $4725 m

Countries X and Y have identical resources. The diagram shows their production possibility curves.

What can be concluded from the diagram?

• X can produce food and drink more cheaply than Y.

• X experiences higher unemployment than Y.

• Y can produce food and drink more efficiently than X.

• Y has higher retail prices than X.