9708 Economics June 2025 Question Paper 12

1 1 mark multiple_choice 1.2

A statement that is based on fact and can be tested.

A
A
B
B
C
C
D
D

2 1 mark multiple_choice 1.1

leads to leads to What is the correct order for the terms to appear in the diagram? choice →opportunity cost →scarcity

A
A
B
B
C
C
D
D

3 1 mark multiple_choice 1.6

It is not possible to stop a non-payer from using the product.

A
A
B
B
C
C
D
D

4 1 mark multiple_choice 1.3

physical capital human capital decreases decreases

A
A
B
B
C
C
D
D

5 1 mark multiple_choice 1.5

O consumer goods capital goods PPC1 PPC2 What could have caused this shift? a decrease in mineral resources

A
A
B
B
C
C
D
D

6 1 mark multiple_choice 2.4

price quantity O S2 D2 S1 D1 X What will cause the demand curve to shift to D2 and the supply curve to shift to S2? a decrease in real incomes and a rise in the costs of new car production

A
A
B
B
C
C
D
D

7 1 mark multiple_choice 2.2

When it is a luxury good.

A
A
B
B
C
C
D
D

8 1 mark multiple_choice 2.3

2.20 2.00 100 105 120 loaves per day SSR SLR price of bread $ What is the bakery’s price elasticity of supply (PES) in the short run and in the long run when the price of a loaf of bread increases? long run short run 2.0 0.5

A
A
B
B
C
C
D
D

9 1 mark multiple_choice 2.1

cost of production

A
A
B
B
C
C
D
D

10 1 mark multiple_choice 1.6

Farmers and honeyguide birds are rival consumers.

A
A
B
B
C
C
D
D

11 1 mark multiple_choice 2.2

price elasticity of demand is elastic

A
A
B
B
C
C
D
D

12 1 mark multiple_choice 4.1

the house owned by the individual

A
A
B
B
C
C
D
D

13 1 mark multiple_choice 1.6

Consumers are not fully aware of the benefits of education.

A
A
B
B
C
C
D
D

14 1 mark multiple_choice 3.2

S2 Pmax P1 Q1 S1

A
A
B
B
C
C
D
D

15 1 mark multiple_choice 2.1

quantity (’000 tonnes) price ($) S1

A
A
B
B
C
C
D
D

16 1 mark multiple_choice 4.6

For price stability to occur, there must be no changes in prices of any products.

A
A
B
B
C
C
D
D

17 1 mark multiple_choice 4.2

Government investment is equal to private investment.

A
A
B
B
C
C
D
D

18 1 mark multiple_choice 4.3

A fall in the price level will lead to a rise in demand for imports.

A
A
B
B
C
C
D
D

19 1 mark multiple_choice 4.5

lack of relevant skills for vacant jobs

A
A
B
B
C
C
D
D

20 1 mark multiple_choice 4.1

$(000s) 600 loss of ticket revenue for train companies value placed on extra leisure time by strikers loss of government tax revenue overtime payments to police What was the reduction in the recorded level of national income resulting from the strike?$690000

A
A
B
B
C
C
D
D

21 1 mark multiple_choice 5.3

a decrease in the availability of credit

A
A
B
B
C
C
D
D

22 1 mark multiple_choice 5.1

low unemployment low inflation economic growth less likely less likely less likely

A
A
B
B
C
C
D
D

23 1 mark multiple_choice 5.2

indirect

A
A
B
B
C
C
D
D

24 1 mark multiple_choice 5.4

an increase in government subsidy to small firms

A
A
B
B
C
C
D
D

25 1 mark multiple_choice 4.3

price level O real GDP AS1 AD AD1 AS AS2

A
A
B
B
C
C
D
D

26 1 mark multiple_choice 6.2

to allow a newly developed domestic industry to grow to a viable size

A
A
B
B
C
C
D
D

27 1 mark multiple_choice 4.2

a low domestic savings rate

A
A
B
B
C
C
D
D

28 1 mark multiple_choice 6.1

the average price of exports divided by the average price of imports

A
A
B
B
C
C
D
D

29 1 mark multiple_choice 5.2

decrease in income tax rates

A
A
B
B
C
C
D
D

30 1 mark multiple_choice 2.1

O P1 S1 S2

A
A
B
B
C
C
D
D

9708 Economics June 2025 Question Paper 12

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