Economics SL Paper 1

Economics SL Paper 1 - c IB DIPLOMA PROGRAMME PROGRAMME DU...

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ECONOMICS STANDARD LEVEL PAPER 1 Tuesday 9 November 2004 (afternoon) 1 hour N04/3/ECONO/SPM/ENG/TZ0/XX+ c IB DIPLOMA PROGRAMME PROGRAMME DU DIPL&ME DU BI PROGRAMA DEL DIPLOMA DEL BI 88045104 8804-5104 16 pages INSTRUCTIONS TO CANDIDATES ! Do not open this examination paper until instructed to do so. ! Answer all the questions. ! For each question, choose the answer you consider to be the best and indicate your choice on the answer sheet provided.
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1. Economics is based on the concept of A. probability. B. scarcity. C. employment. D. equality. 2. Which one of the following can be described as a normative statement? A. The natural rate of unemployment is 4 %. B. Unemployment has fallen in the last year. C. Unemployment is too high. D. The level of inflation has increased in the last year. 3. The graph below illustrates the supply of computers in Canada. Price ($) 0 Quantity of computers A B S A movement from A to B may be caused by which one of the following? A. A fall in the price of machinery used to make computers. B. An increase in incomes. C. Increased subsidies to computer manufacturers. D. Improved technology in the computer industry. & 2 & N04/3/ECONO/SPM/ENG/TZ0/XX+ 8804-5104
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4. Which one of the following would an economist classify as capital? A. Shares in a company B. Money in a savings account C. Dividends paid to shareholders D. Machinery in a factory 5. Use the diagram below to answer the following question. Consumer goods N M X Y A B Capital goods 0 The opportunity cost of moving from A to B is A. NM of consumer goods. B. XY of capital goods. C. 0Y of capital goods. D. 0N of consumer goods. 6. An effective advertising campaign for milk is likely to lead to A. an increase in the quantity demanded and a fall in the supply. B. an increase in demand and an increase in price. C. an increase in the supply and a fall in the price. D. an increase in the supply and a decrease in the quantity demanded. & 3 & N04/3/ECONO/SPM/ENG/TZ0/XX+ 8804-5104 Turn over
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7. The following diagram illustrates the market for rented accommodation in Paris. Rent P maximum Quantity of apartments 0 Q1 Q2 Q3 P S D The imposition of a maximum price for rented apartments equal to &P maximum± is likely to result in A. a surplus of available apartments of Q2Q3. B. an increase in the quantity of apartments demanded of Q1Q2. C. a shortage of available apartments of Q1Q3. D. demand for apartments of 0Q1. 8. A parallel market is likely to occur when A. a market is at equilibrium. B. a minimum price is imposed above the equilibrium. C. a minimum price is imposed below the equilibrium. D. a maximum price is imposed above the equilibrium. ² 4 ² N04/3/ECONO/SPM/ENG/TZ0/XX+ 8804-5104
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9. A government wishing to correct a negative externality by using a market-based response is likely to A. ban the activity causing the market failure.
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This note was uploaded on 09/30/2011 for the course CHEM 102 taught by Professor Tina during the Spring '11 term at Global.

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Economics SL Paper 1 - c IB DIPLOMA PROGRAMME PROGRAMME DU...

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