CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education ECONOMICS Paper 1 Multiple Choice May/June 2003 1 hour Additional Materials: 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 forty 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.
Ó CIE 2003
2 1 An unemployed worker accepts a job. Which of the following is the opportunity cost of this decision? A B C D 2 the cost of travel to work the income from the new job the leisure time lost the training in the new job
A hospital cannot treat all the people that need treatment. This is an example of A B C D excess supply. limited wants. scarcity. unlimited resources.
Economic growth in Russia and China used to be led by the public sector. Now it results more from activities in the private sector. However, both sectors are important. Which term describes the current system in Russia and China? A B C D market mixed planned subsistence
The table shows how employment in five industries changed in a country between 1985 and 2000. 1985 (thousand) banking and finance distribution and catering extraction of minerals manufacturing transport 2336 4678 2278 4102 2550 2000 (thousand) 2881 5323 1794 3128 2304
According to the table, which type of employment has increased? A B C D primary secondary tertiary total 0455/1 Jun03
3 5 What is necessary for a company to be classified as a multi-national? A B C D 6 It diversifies its range of products. It exports most of its output. It increases its scale of production. It produces some of its output in different countries.
Which advantage is most likely to enable a small retailer to compete with larger stores? A B C D a convenient location a wide range of products internal economies of scale national advertising
In 2001 some countries, including India and Pakistan, criticised the European Union for continuing to protect European farmers with a subsidy while expecting poorer African countries not to restrict trade. Identify the concepts that are not involved in this situation. A B C D developing and developed economies free trade and protection market prices and official intervention multi-nationals and public corporations
A commercial bank is appointed to act as a country’s central bank. What new function would it now have? A B C D controlling monetary policy dealing in foreign exchange ensuring security for loans holding liquid assets
Which trade union action is most likely to have harmful effects on the productivity of a firm? A B C D acceptance of new technology agreement to a bonus system opposition to planned redundancies participation in a profit-sharing scheme
4 10 The diagram shows the demand for chocolate.
D O quantity demanded per week
What could cause the movement from point X to point Y? A B C D a change in tastes a fall in the price of chocolate an increase in income a successful advertising campaign for chocolate
11 The table shows the price of, demand for and supply of X per week. price ($) 20 30 40 demand (tonnes) 16 12 10 supply (tonnes) 10 12 14
What will be the effect if...
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