Question No.

Sub Question Question

achieving the first two aims.
1
The third
Using theaim of developing
information, explain very
thelarge
marketaircraft was
structure
a) Explain why the two companies might be concerned
that exists in aircraft manufacturing.
b) about the potential entry of China into the aircraft
‘The nature of the
manufacturing aircraft manufacturing industry is
industry.
c)
that it involves significant
Using an example from the fixed costs.’ explain the
information,
c) i) With the aid of a diagram,
meaning of fixed costs. explain the link between an
c) ii) increase in an aircraft
Discuss whether economic manufacturer’s
theory canlevel of output
explain how two
d) and its average fixed costs.
companies will compete with each other when they
What
dominate is meant by ‘efficiency’ in relation to the use of
a market.
2 a) ‘Market failure can always be overcome to increase
resources?
b) economic
Use efficiency.’
indifference curve analysis to explain how an
3 a) How far do you
individual’s agree
demand with for
curve thisanstatement?
Discuss the relative importance ofinferior
marginal goodcostis and
b) derived. variable cost in determining short-run
average
can account for wage differentials (i) between a
4 production
director anddecisions.
a general worker in the same company
Index
and (ii)(HDI) and the
between two Measure of Economic
workers doing the same Welfare
job in
5
(MEW) provide better measures
Explain the causes of unemployment and considerof living standards
6 a) Discuss
which is whether
most likely solving the in
to occur problem of unemployment
a developing country
b) should be the main policy objective
Explain what is meant by quantitative easing for the government
(QE) and
7 a) of a developing
consider whether country.
it is an effective policy to be used in
‘Policies to achieve economic growth will inevitably
b) a recession.
cause a government budget deficit.’
How far do you agree with this statement?
QIMG Reference Answer
9708/42/M/J/21/1
• Oligopoly (1)
9708/42/M/J/21/1a demand for other suppliers
• as two firms dominate the (1)
whole market (1)
9708/42/M/J/21/1b • limits pricing ability of existing firms (1) and
9708/42/M/J/21/1c reduces profit (1)
• R&D / marketing/brand development (1)
9708/42/M/J/21/1ci •• Does
Becausenot the
increase
same or decrease
amount as level
of fixed costsofis
9708/42/M/J/21/1cii output changes (1)
being averaged out/divided over a larger
•number
non-price competition
of aircraft (1) product innovation,
9708/42/M/J/21/1d
marketing
linked to one form of efficiency and 11/12 if
9708/42/M/J/21/2a
reference is made
L3 (7–8 marks) Fortoanboth formswhich
answer of efficiency.
identifies
9708/42/M/J/21/2b effect on demand. The derivation of the
one form of market failure and which analyses
9708/42/M/J/21/3a demand curve is explicit using reference to
how differences
the income in these costs
and substitution and average
effects, or a shift
9708/42/M/J/21/3b elasticities
revenue willofdetermine
labour. Both
theelements
short-run (i) and (ii)
9708/42/M/J/21/4 are directly addressed. Imperfections are
sound discussion
commented upon of
to the limitations/difficulties
account for differences in
9708/42/M/J/21/5 their
of therelative
GNI and significance
one other for developing
measure. A
9708/42/M/J/21/6a countries
discusses11/12three marks.
alternative policy objectives
9708/42/M/J/21/6b L3
and(7–8 marks)
whether Explanation
they of threeascauses
are as important
links to its effects
unemployment. A on
conclusion is reached for
9708/42/M/J/21/7a
investment/consumption/asset
budget deficit. prices and
9708/42/M/J/21/7b
L3 (7–8 marks) For a response which gives a
 Image for Marks
Guidance AIMG Subject Code Chapter Topic
Guidance Allocated
9708
2 9708 7 6
4 9708 7 8
9708
2 9708 7 5
4 9708 7 5
8 9708 7 6
12 9708 7 3
13 9708 7 4
12 9708 7 2
13 9708 7 5
25 9708 8 3
25 9708 11 3
12 9708 9 3
13 9708 10 1
12 9708 10 1
13 9708 10 3
Question
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