November 2013 Economics Paper 3 (Without Answers)

General Certificate of Education Advanced Level

ECONOMICS                                                                                                                             9158/3

NOVEMBER 2013 SESSION            3 hours

TIME     3 hours

INSTRUCTIONS TO CANDIDATES

• Write your name, Center number and candidate number in the spaces provided on the answer sheet/answer booklet.
• Answer any four questions.
• Write your answers on the separate answer paper provided.
• If you use more than one sheet of paper, fasten the sheets together.

INFORMATION FOR CANDIDATES

• The number of marks is given in brackets

1        a) Explain what is meant by the basic economic problem.                           [10]

b) Discuss the benefits of changing from a command economy to a market economy.   [15]

2        a) Analyse the factors influencing price elasticity of demand for cement  in your country. [10]

b) To what extent are elasticity of demand concepts useful to the housing construction industry? [15]

3        a) Account for the continued survival of small firms despite competition from large firms. [12]

b) Discuss whether large firms serve the society better than small firms.       [13]

4         a) Explain

i)  normal profit,

ii) abnormal profit.                          [10]

b) Discuss whether profitable firms are efficient.              [15]

5          a) Explain

i) net advantage,

ii) economic rent,

iii) quasi-rent                     [12]

b) Discuss whether the level of workers’ wages depends on the strength of their trade union.  [13]

6         a) Explain

i)  public good,

ii) demerit good,

iii) negative externality.                     [12]

b)   Discuss how government may deal with market failure in an economy.   [13]

7           a) Explain how the comparative advantage theory determines international trade.  [12]

b)  To what extent does the comparative advantage theory explain trade flows between countries? [13]

8           a) Analyse the problems of measuring national income in your country.   [12]

b) Discuss the usefulness of national income statistics in an economy.       [13]

9           a) Explain

i) demand-pull inflation,

ii) cost-push inflation.                     [12]

b) Discuss the effects of a substantial increase in money supply in an economy.  [13]

10         a) Analyse factors influencing economic growth in your country.          [12]

b) Discuss the benefits of economic growth to an economy.          [13]

11          a) Analyse the effects of unemployment in an economy.     [10]

b) Discuss the effectiveness of measures meant to reduce unemployment in your country. [15]

12          Assess the benefits to a developing country, of developing through policies of trade and industrialisation. [25]

To access more exams go to the A Level Economics Examination page.