This document consists of 9 printed pages and 3 blank pages. IB17 06_0455_12/3RP © UCLES 2017 [Turn over *3853652755* Cambridge International Examinations Cambridge International General Certificate of Secondary Education ECONOMICS 0455/12 Paper 1 Multiple Choice May/June 2017 45 minutes 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 2017 0455/12/M/J/17 1 Which is not a factor of production? A a farm B a farmer C a farmer’s bank account D a second-hand tractor 2 Heavy rain caused floods in an area of a country. What may be an opportunity cost of repairing the damage caused? A the allocation of government funds to the area instead of on a new airport B the cost of providing shelter for those made homeless C the decline in the tourist industry in the area D the loss of profits from businesses affected by the flood 3 The diagram shows a production possibility curve for cars and furniture. cars furniture O W X Z Y A recession causes a decrease in production in both cars and furniture. Which movement would represent this change? A X to W B X to Y C Z to W D Z to Y 4 In response to an increase in price from $5 per kilo to $6 per kilo a chicken farmer increased supply from 400 kilos to 500 kilos per week. What is the price elasticity of supply? A 0.8 B 0.9 C 1.2 D 1.25
3 © UCLES 2017 0455/12/M/J/17 [Turn over 5 The diagram shows the demand for chocolate. O quantity demanded per week price D X Y What could cause the movement from point X to point Y ? A a change in tastes B a fall in the price of chocolate C an increase in income D a successful advertising campaign for chocolate 6 A bee-keeper maintains hives of bees to produce honey. The bees can pollinate neighbours’ fruit trees but also give a painful sting to gardeners.
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