Economics 9708/31 — May/June 2015
Cambridge A-Level · A Level Multiple Choice · answer key with instant marking and worked solutions
Topics Money and Banking · Economic Growth and Sustainability · Demand for and Supply of Labour · Wage Determination and Labour Market Intervention · Externalities, Social Costs and Benefits · Revenue and Profit · +15 more
Tap an option under each question to check it — your score builds as you go.
An economy reallocates resources and moves along its production possibility frontier.
It increases production of necessity goods and reduces production of luxury goods.
The marginal utility of the consumers of the additional necessity goods produced is greater than the marginal utility of the consumers of the luxury goods that are no longer produced.
What is the effect on the economic efficiency of the economy?
Options
| productive efficiency | allocative efficiency | |
|---|---|---|
| A | increases | increases |
| B | increases | unchanged |
| C | unchanged | increases |
| D | unchanged | unchanged |
The rest of this paper
29 more questions- Q2Utility Theory1M
- Q3Indifference Curves and Budget Lines1M
- Q4Demand for and Supply of Labour1M
- Q5Demand for and Supply of Labour · Wage Determination and Labour Market Intervention1M
- Q6Wage Determination and Labour Market Intervention1M
- Q7Short-Run and Long-Run Production1M
- Q8Costs of Production1M
- Q9Externalities, Social Costs and Benefits1M
- Q10Growth and Survival of Firms1M
- Q11Revenue and Profit1M
- Q12Revenue and Profit · Performance of Firms in Different Market Structures1M
- Q13Performance of Firms in Different Market Structures1M
- Q14Externalities, Social Costs and Benefits · Government Policies to Correct Market Failure1M
- Q15Equity, Poverty and Redistribution1M
- Q16Government Policies to Correct Market Failure1M
- Q17Economic Development and Living Standards1M
- Q18Components of Aggregate Demand1M
- Q19The Multiplier and National Income Determination1M
- Q20Money and Banking1M
- Q21Money and Banking1M
- Q22Economic Growth and Sustainability1M
- Q23Economic Development and Living Standards1M
- Q24Macroeconomic Objectives and Policy Conflicts1M
- Q25Economic Growth and Sustainability1M
- Q26Economic Growth and Sustainability1M
- Q27Balance of Payments and Policies to Correct Disequilibrium · Macroeconomic Objectives and Policy Conflicts1M
- Q28Money and Banking1M
- Q29Money and Banking1M
- Q30Effectiveness of Macroeconomic Policies1M