OCR 2023 GCE ECONOMICS H460/03: THEMES IN ECONOMICS A LEVEL QUESTION PAPER & MARK SCHEME (MERGED)

2 © OCR 2023 SECTION A Write your answer to each question in the box provided. 1 What would a shift in the long run aggregate supply curve to the right be most likely to cause? A A decrease in the level of income inequality B A decrease in the rate of inflation C An increase in the current account deficit D An increase in unemployment Your answer [1] 2 A Central Bank is operating a fixed exchange rate. What intervention can it take to prevent the value of the currency falling? A Decreasing the interest rate B Imposing tariffs C Quantitative easing D Selling foreign currency reserves Your answer [1] 3 © OCR 2023 Turn over 3 A firm is producing Q1 units of output at a price of P1 in the diagram below. What objective is it likely to be pursuing? Costsand revenues MC AC P1 0 Q1 AR Output MR A Profit maximisation B Profit satisficing C Sales revenue maximisation D Sales volume maximisatio