OCR 2023 ECONOMICS H060/01: MICROECONOMICS AS LEVEL QUESTION PAPER & MARK SCHEME (MERGED)

1 Which of these contains all the four factors of production? A Capital, enterprise, labour, land B Capital, labour, profit, rent C Enterprise, interest, land, wages D Interest, profit, rent, wages Your answer [1] 2 What is the income elasticity of demand if a 10% increase in consumer income leads to a 40% decrease in quantity demanded? A –4.00 B –0.25 C +0.25 D +4.00 Your answer [1] 3 Which of these is an example of a normative statement? A Taxes on cigarettes provide the government with tax revenue B The government should raise taxes even higher on cigarettes C The tax on cigarettes accounts for 80% of the price of cigarettes D VAT is one of the taxes charged on cigarettes Your answer [1] 4 Opportunity cost is defined as the value of: A all alternative goods foregone B the cost of other goods and services C the cost imposed on a third party D the next best alternative foregone Your answer [1] 3 © OCR 2023 Turn over S S S S 5 The diagrams show the relationship between price and quantity supplied of a product. Which supply curve shows unit price elasticity of supply along the curve? A Price Quantity supplied B Price Quantity supplied C Price Quantity supplied D Price Quantity supplied