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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level

9708/01

ECONOMICS

May/June 2009

Paper 1 Multiple Choice (Core)

1 hour
Additional Materials:

*5574166390*

Multiple Choice Answer Sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)

READ THESE INSTRUCTIONS FIRST
Write in soft pencil.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the Answer Sheet in the spaces provided unless this has been done for you.
There are thirty questions on this paper. Answer all questions. For each question there are four possible answers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.

This document consists of 12 printed pages.
IB09 06_9708_01/3RP
© UCLES 2009

[Turn over

2
1

Three women work in a pottery workshop, each dividing their time equally between three products. The table shows how many units of each product are made. plates bowls

mugs

Jane

100

50

50

Sarah

50

100

50

Seema

50

50

100

total

200

200

200

Later, division of labour is introduced and each woman makes only the product in which she has absolute advantage.
What is the rise in total output?
A

2

150 units

B

300 units

C

600 units

D

900 units

The diagram shows two production possibility curves (EF and GH), before and after technological progress has taken place.

G
E
consumer goods X

O

Y

M F

H

capital goods
After technological progress has taken place, what is the opportunity cost in capital goods of producing OX consumer goods?

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