This document consists of 13 printed pages and 3 blank pages. IB15 11_9708_32/2RP © UCLES 2015 [Turn over *0717604385* Cambridge International Examinations Cambridge International Advanced Level ECONOMICS 9708/32 Paper 3 Multiple Choice (Supplement) October/November 2015 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, 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. DO NOT WRITE IN ANY BARCODES. 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.
2 © UCLES 2015 9708/32/O/N/15 1 The diagram shows the production possibility curve for a successful transition economy that moves from point X to point Y over time. public sector output private sector output O X Y During the transition process the population of the country expressed a strong preference for increased privatisation. What happens to economic efficiency as a result of the transition from point X to point Y? productive efficiency allocative efficiency A increases decreases B increases increases C unchanged decreases D unchanged unchanged 2 The diagram shows an individual’s total utility from consuming glasses of fruit juice. total utility total utility O number of glasses of fruit juice How can this information help to derive the individual’s demand curve for fruit juice? A by revealing the individual’s marginal utility curve B by revealing the money value of marginal utility C by showing how total utility is maximised D by showing the relationship between utility and expenditure
3 © UCLES 2015 9708/32/O/N/15 [Turn over 3 In the diagram, PQ is a consumer’s original budget line. 0 10 20 16 12 quantity of Y quantity of X P R Q S The consumer’s income increases from $80 to $120 and, at the same time, the prices of X and Y change. If the consumer’s budget line is now RS, what are the new prices of X and Y? price of X ($) price of Y ( $) A 4 12 B 6 10 C 10 8 D 12 6 4 What will result from the differences in the non-pecuniary advantages of various occupations? A disequilibrium in the labour market B long-term differentials in wage rates C monopsony in particular labour markets D shortages of labour in particular occupations
4 © UCLES 2015 9708/32/O/N/15 5 Which diagram correctly shows the relationship between the average product (AP) and the marginal product (MP) of labour, given that the quantities of other factor inputs remain constant?
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