0455 Economics November 2025 Question Paper 12

People in the country cannot afford healthcare.

opportunity cost

capital goods O consumer goods

microeconomics macroeconomics study of price of a product study of demand for a product

O supply demand quantity price Pe Qe E1 E2 What is the cause of the change in the market equilibrium? a decrease in the price of a substitute good

price O quantity

+2.0

by a mixture of market forces and government intervention

$000

private benefit private cost external benefit external cost Which calculation represents social benefit? $12000 –$10000 = $2000

holidays % transport % food %

in those where the work is dangerous

by expanding the market for the product

conglomerate

$30

There are few barriers to entry.

to boost domestic output

$m taxes on goods 500 taxes on income taxes on services customs and excise duties What is the amount of indirect tax revenue?$500m

changes in interest rates and money supply

a fall in inflation

the level of unemployment

GDP per capita will decrease

employment unemployment those who are not in full-time education those who want a job but cannot get one at the current wage rate

–1 –2 –3 price change (%) year When did the country experience deflation? year 2 to year 5

supply-side policy fiscal policy create more competition decrease corporation tax

over 60 years 16–60 years under 16 years fall fall fall

Choice is limited.

a fall in the rate of inflation

import expenditure export revenue decreases decreases

increase subsidies on exports