Econom,ics Edexcel Jun Year 10 2

In 2009 Russian tea experts forecast that as incomes in Russia fall due to

recession people will drink more tea. This suggests that in Russia tea is

• a normal good

• a luxury good

• an inferior good

• a complementary good

Which of the following is the most likely consequence of an ageing

population?

• Demand for toys will increase

• More teachers will be employed

• Government expenditure on health services will increase

• Tax rates will fall.

The merger of T-Mobile and Orange (mobile) is an example of

• a horizontal merger

• a vertical merger

• diversification

• privatisation

If a farmer decides to stop growing wheat and grow biofuels instead the opportunity cost is:

• the revenue received

• growing wheat for making flower

• The cost of fertrilizer

• There is no opportunity cost

The Nigerian government stated that some of the money it would have spent on

subsidies would now be spent on improving the infrastructure of Nigeria.

Choosing to spend money on infrastructure rather than expenditure on subsidies is an example of

• taxation

• opportunity cost

• monetary policy

Using the data in Figure 2a identify the smallest economic sector of the

Maldives’ economy.

• Primary Sector

• Secondary Sector

• Tertiary Sector

Until 2006 Dhiraagu was the only telecommunications company in the Maldives.

In 2006 another telecommunications company, Wataniya Telecom, became

operational and began to compete in the market.

Before 2006 the telecommunications industry in the Maldives could be

described as a monopoly. After 2006 the industry could be described as being

• more competitive

• less competitive

• illegal

In a cartel firms join together and engage in (i)​ (a)   agreements. The aim of forming cartels is to maximise (ii) ​ (b)   and allow firms to act as if they were in a

monopoly situation. They charge (iii) ​ (c)   prices and​

produce less output. Many governments see cartels as against (iv) ​ (d)   interest, so make cartels illegal.

• price-fixing
• profits
• high
• consumer

Figure 1a shows the Uk sales of compact disks (CDs) music albums and music music album downloads from the internet (digital albums) in 2010 and 2011

• supplements

• substitutes

• complements

• necessities

The price of sugar, the main ingredient in sweets, increases. Which of a businesses costs will increase as a result.

• Rent

• Variable Costs

• Fixed Costs

• External Costs