, 📘 UNIVERSITY OF OXFORD
ECONOMICS II – STUDENT-FRIENDLY EXAM ANSWERS (2025)
📌 How Students Should Use This Document
This paper contains 10 questions, but in the actual exam, only THREE questions must be
answered.
👉 This document helps students by:
Explaining all questions in simple terms
Providing full, detailed answers for the THREE most important questions
Highlighting which questions are safest and highest-scoring
If time is limited, preparing the three highlighted questions is the best strategy.
🔹 PART A: ALL QUESTIONS – SIMPLE EXPLANATIONS
Question 1: AI and Information Acquisition
This question asks whether cheap access to information through AI
reduces incentives to create new knowledge.
AI lowers information costs, but incentives to produce new information
may still exist through competition, profits, and innovation.
⭐ IMPORTANT QUESTION (Fully explained below)
Question 2: Gender Pay Gap
This question examines whether differences in pay between men and women
reflect market failure.
ECONOMICS II – STUDENT-FRIENDLY EXAM ANSWERS (2025)
📌 How Students Should Use This Document
This paper contains 10 questions, but in the actual exam, only THREE questions must be
answered.
👉 This document helps students by:
Explaining all questions in simple terms
Providing full, detailed answers for the THREE most important questions
Highlighting which questions are safest and highest-scoring
If time is limited, preparing the three highlighted questions is the best strategy.
🔹 PART A: ALL QUESTIONS – SIMPLE EXPLANATIONS
Question 1: AI and Information Acquisition
This question asks whether cheap access to information through AI
reduces incentives to create new knowledge.
AI lowers information costs, but incentives to produce new information
may still exist through competition, profits, and innovation.
⭐ IMPORTANT QUESTION (Fully explained below)
Question 2: Gender Pay Gap
This question examines whether differences in pay between men and women
reflect market failure.
