Scarcity, choice and opportunity cost — Paper 3 · A Level Economics 9708

26 What is an unavoidable cost of long-run economic growth? A an increase in inflation B an increase in the working hours of the population C a sacrifice of potential present consumption D greater inequality in the distribution of income

1 marks

Answer: C

This question in 9708/31 Oct/Nov 2010

26 What is an unavoidable cost of long-run economic growth? A an increase in inflation B an increase in the working hours of the population C a sacrifice of potential present consumption D greater inequality in the distribution of income

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2010

25 What is an unavoidable cost of long-run economic growth? A an increase in inflation B an increase in the working hours of the population C a sacrifice of potential present consumption D greater inequality in the distribution of income

1 marks

Answer: C

This question in 9708/33 Oct/Nov 2010

8 An economist calculates that a firm has incurred the following costs over the course of a year. $(000) wages and salaries 150 opportunity cost of owner’s time 35 materials 80 rent 30 marketing fees 20 interest on bank loans 25 interest forgone on finance provided by owner 10 By how much does total cost as defined by an economist exceed the total cost as defined by an accountant? A $75 000 B $45 000 C $35 000 D $10 000

1 marks

Answer: B

This question in 9708/31 May/June 2012

8 An economist calculates that an owner-managed firm has incurred the following costs over the course of a year. $(000) wages of two employees 150 fee paid to wife for secretarial services 20 opportunity cost of owner’s time 30 materials 80 rent 30 marketing fees 20 interest on bank loans 25 interest forgone on finance provided by owner 15 By how much does total cost as defined by an economist exceed the total cost as defined by an accountant? A $15 000 B $30 000 C $45 000 D $65 000

1 marks

Answer: C

This question in 9708/32 Oct/Nov 2012

28 What is the best measure of the economic cost of an increase in unemployment? A the loss of potential exports B the money value of the additional social security benefits paid C the goods and services the unemployed workers could have produced D the additional social security benefits paid plus the loss of tax revenue from newly redundant workers

1 marks

This question in 9708/33 Oct/Nov 2012

7 An economist calculates that a firm has incurred the following costs over the course of the year. $(000) wages and salaries 150 opportunity cost of owner’s time 40 materials 80 rent of buildings 30 marketing fees 20 interest on bank loans 25 interest forgone on finance provided by owner 15 depreciation of equipment 20 By how much would the economist’s calculation of the total cost incurred by the firm exceed an accountant’s calculation of the firm’s total cost? A $15 000 B $40 000 C $55 000 D $75 000

1 marks

Answer: C

This question in 9708/32 May/June 2013

7 An economist calculates that a firm has incurred the following costs over the course of a year. $(000) wages and salaries 150 opportunity cost of owner’s time 40 materials 100 rent of building 30 marketing fees 20 interest on bank loans 25 interest forgone on finance provided by owner 30 depreciation of equipment 35 What would an accountant calculate to be the total cost incurred by the firm? A $360 000 B $390 000 C $400 000 D $430 000

1 marks

Answer: A

This question in 9708/33 Oct/Nov 2013

27 What is the opportunity cost to society of an increase in unemployment? A the increase in taxes to pay for unemployment benefits B the loss in national output C the reduction in the disposable income of those who lose their jobs D the resulting increase in the government’s fiscal deficit

1 marks

Answer: B

This question in 9708/33 Oct/Nov 2014

14 What would economists agree should be the aim of any health care system? A to meet all the health care demands of the population B to provide every patient with the latest and best available treatment C to provide free medical treatment D to secure the maximum health gain from the resources available

1 marks

Answer: D

This question in 9708/33 Oct/Nov 2015

3 A government is choosing between four routes for a new road. The table provides details of the costs and benefits associated with each route. The government wants to get the highest return for taxpayers in terms of the social benefit relative to the private cost. Which route will the government choose? route ($ million) private private external costs benefits benefits A 20 25 5 B 25 30 10 C 20 25 10 D 30 35 10

1 marks

Answer: C

This question in 9708/32 May/June 2021

9 The result of a cost-benefit analysis of a proposed government road-building project is that there will be a positive net social benefit of $50 million. Why might the government not proceed with the project? A The project would not be profitable for a private firm. B The project would cause negative externalities. C There is limited capital available for government projects. D There would be more who lost than gained.

1 marks

Answer: C

This question in 9708/32 Feb/March 2023