EcoHL P2 N04 TZ0

EcoHL P2 N04 TZ0 - subsidy to an industry 3 A monopolist decides to maximize profits rather than revenue Using a diagram explain how price and

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMICS HIGHER LEVEL PAPER 2 Tuesday 9 November 2004 (afternoon) 1 hour N04/3/ECONO/HP2/ENG/TZ0/XX c IB DIPLOMA PROGRAMME PROGRAMA DEL DIPLOMA DEL BI 88045102 8804-5102 2 pages INSTRUCTIONS TO CANDIDATES ! Do not turn over this examination paper until instructed to do so. ! Answer four questions. ! Use diagrams and real-world examples where appropriate.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Each question is worth [10 marks]. 1. Use a diagram to explain why the under provision of merit goods is considered to be an example of market failure. 2. Use a diagram to explain how producers and consumers might benefit from a government
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: subsidy to an industry. 3. A monopolist decides to maximize profits rather than revenue. Using a diagram, explain how price and quantity will change. 4. Explain two policies that a government might use to deal with the problem of demand-deficient (cyclical) unemployment. 5. How would deterioration in the terms of trade affect the current account of a country? 6. With the help of a diagram, explain how a buffer stock scheme is expected to work. & 2 & N04/3/ECONO/HP2/ENG/TZ0/XX 8804-5102...
View Full Document

This note was uploaded on 02/12/2010 for the course ECON 201 taught by Professor Smith during the Spring '10 term at Whittier.

Page1 / 2

EcoHL P2 N04 TZ0 - subsidy to an industry 3 A monopolist decides to maximize profits rather than revenue Using a diagram explain how price and

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online