AQA A LEVEL ECONOMICS PAPER 2 NATIONAL AND INTERNATIONAL ECONOMY VERSION 1.0 FINAL QUESTIONS WITH MARKING SCHEME

The fall in price and increase in the quantity demanded of lemons could have been caused by [1 mark] A a fall in the price of a substitute for lemons, oranges. B a rise in the price of lemonade. C a reduction in the price of a complement for lemons, fish. D favourable weather leading to a record harvest.3 *03* Turn over ► IB/G/Jun23/7136/3 Do not write outside the 0 2 The environment is a scarce resource. A consequence of this is that box [1 mark] A all natural resources have a market price. B all natural resources will eventually be used up. C the environment has an opportunity cost. D the environment is a pure public good. 0 3 Table 1 shows the price of a packet of peanuts and the number of packets of cashew nuts sold in a shop in one month. The price of a packet of cashew nuts is unchanged. Table 1 Price of a packet of peanuts Number of packets of cashew nuts purchased per month £0.80 20 000 £0.84 32 500 When the price of a packet of peanuts rises from £0.80 to £0.84, the cross elasticity of demand for cashew nuts with respect to the price of peanuts is [1 mark] A –12.5 B –0.08 C +0.08 D +12.5 0 4 The change in nominal national income per head is an unsatisfactory indicator of the change in the living standards of a country’s citizens over a period of time. The main reason is that nominal national income per head does not take into account [1 mark] A consumer expenditure at market prices. B the output produced by different sectors of the economy. C the rate of inflation. D the size of the population.