EcoHL P1 M03

EcoHL P1 M03 - c 1 hour IB DIPLOMA PROGRAMME PROGRAMME DU...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMICS HIGHER LEVEL PAPER 1 Tuesday 6 May 2003 (afternoon) 1 hour M03/330/H(1)+ IB DIPLOMA PROGRAMME PROGRAMME DU DIPLÔME DU BI PROGRAMA DEL DIPLOMA DEL BI c 223-034 18 pages INSTRUCTIONS TO CANDIDATES y Do not open this examination paper until instructed to do so. y Answer all the questions. y For each question, choose the answer you consider to be the best and indicate your choice on the answer sheet provided.
Background image of page 1

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

View Full DocumentRight Arrow Icon
1. The following diagram represents a production possibility curve for an economy that produces only two goods, computers and cars. 0 Production of computers Production of cars Which one of the following changes in the economy will shift the Production Possibility Curve from to ? 1 PPC 2 PPC A. Improvements in the standard of education and training of workers in the car industry B. A fall in the level of unemployment C. Entrepreneurs choosing to produce computers and not cars D. The development of more efficient computer production techniques 2. The graph below shows the demand curve for onions. 0 Price of onions Quantity demanded / supplied per period - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - P Q D X Y D The movement from point X to point Y on the demand curve could have been caused by A. increased productivity in onion growing. B. a decrease in the demand for onions. C. a poor onion harvest. D. a rise in the price of leeks, a substitute. – 2 – M03/330/H(1)+ 223-034 1 PPC 2 PPC 1 P 1 Q
Background image of page 2
3. In the diagram below, SS and DD are the original supply and demand curves for bread. 0 Price of bread Quantity of bread demanded / supplied per period - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - M N T S R S S 1 D E Y Z X D If the government grants a flat rate subsidy to bread producers, the total subsidy given would be represented by the area A. RTYX. B. 0TYN. C. 0SEM. D. RSZX. 4. In the diagram below, curves SS and DD represent the supply and demand for labour in a freely operating market. 0 Quantity of labour demanded / supplied per period MN S S D D Wages W L A trade union enters the market and negotiates a wage of . According to the diagram, the 1 0W effect of this would be to create a surplus of labour equal to A. LM. B. MN. C. LN. D. 0N. – 3 – M03/330/H(1)+ 223-034 Turn over 1 W
Background image of page 3

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

View Full DocumentRight Arrow Icon
5. The price system helps to allocate resources efficiently because A. it ensures that priority is given to those in greatest need. B. the free interplay of market forces always leads to a socially optimum outcome. C. competition between firms allows consumers to make rational choices. D. the prices of natural resources will rise as the stock of such resources nears depletion. 6.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the 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 / 18

EcoHL P1 M03 - c 1 hour IB DIPLOMA PROGRAMME PROGRAMME DU...

This preview shows document pages 1 - 5. Sign up to view the full document.

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