0455 Economics June 2025 Question Paper 13

a 10 dollar note

$50

X consumer goods O capital goods What does point X on the PPC show? All resources are used for the production of consumer goods.

allocating resources and guiding choices

quantity supplied (million tonnes) quantity demanded (million tonnes) price per kilo $2.50 2.00 1.50 1.00 0.50 What will happen if the price is reduced to$1.00 per kilo? The demand curve will shift to the left.

O D1 E1 E2 D2 P2 P1 Q1 Q2 S price quantity What would cause a change in the market equilibrium from E1 to E2? a newspaper article stating cherries are good for your health

its cars are price elastic

price quantity O

ownership of land and capital resource allocation private sector by government

cost of borrowing amount saved decreased decreased

the availability of overtime work

tertiary sector secondary sector increased supply of workers increased productivity

O cost output ATC

a decrease in the price of capital used by the industry

output (units) 720 500 360 200 total variable costs ($) What can be concluded about the firm’s average total cost? It falls continuously.

price output decrease decrease

to improve international competitiveness

welfare payments tax revenues decrease decrease

It creates uncertainty for workers.

to conserve oil resources

a decrease in imports

a large increase in the factory owners’ incomes

Some benefit claimants are working unofficially.

higher employment

It will decrease the productivity of workers.

a rise in emigration

increased emigration

UK government revenue German steel producers’ revenue decrease decrease

September June £1 = $1.32 £1 =$1.48 What will be the likely consequence for the UK economy in the short run of the change in the exchange rate? an increase in the budget deficit

$m 1000 –500 1000 2000 800 200 primary income secondary income total value of exported goods total value of imported goods total value of exported services total value of imported services What is the current account balance of the balance of payments of this country?$4725m