Questions as text
Q1 · The major oil producers sometimes try to raise the price of oil 0455/11 Oct/Nov 2004
11 The major oil producers sometimes try to raise the price of oil. How would this be shown on a demand and supply diagram? A a movement along the demand curve to the right B a shift in the supply curve to the right C a shift in the demand curve to the left D a shift in the supply curve to the left
1 marks
Answer: D
This question in 0455/11 Oct/Nov 2004
Q2 · The supply and demand schedules for bananas are shown on the graph 0455/11 Oct/Nov 2004
13 The supply and demand schedules for bananas are shown on the graph. In an attempt to aid agriculture the government decides to pay a subsidy to farmers for each tonne of bananas grown. What is the most probable equilibrium point? C D price A B O quantity
1 marks
Answer: A
This question in 0455/11 Oct/Nov 2004
Q3 · Which factor would cause a shift in the supply curve for a good? 0455/11 May/June 2006
8 Which factor would cause a shift in the supply curve for a good? A a fall in the price of the good B a fall in the price of its raw materials C an increase in the quantity consumed D an increase in consumers’ incomes
1 marks
Answer: B
This question in 0455/11 May/June 2006
Q4 · What is likely to reduce the price of Air Namibia’s flights? 0455/11 Oct/Nov 2006
13 What is likely to reduce the price of Air Namibia’s flights? A increased competition from new airline companies B increased demand for flights C increased oil prices D increased wages for airline staff
1 marks
Answer: A
This question in 0455/11 Oct/Nov 2006
Q5 · Australian mines are among the world’s largest suppliers of uranium but the mines are… 0455/11 May/June 2007
13 Australian mines are among the world’s largest suppliers of uranium but the mines are contaminating Australia’s natural environment. It is recommended that the mining companies install new equipment which causes less pollution. If this is done, how would it be represented on a demand and supply diagram for uranium? demand curve supply curve A shift to left no change B shift to right shift to left C no change shift to left D shift to left shift to right
1 marks
Answer: C
This question in 0455/11 May/June 2007
Q6 · Sometimes travel companies advertise holidays at prices below cost 0455/11 Oct/Nov 2007
11 Sometimes travel companies advertise holidays at prices below cost. What might be a reason for this? A an excess demand for holidays B an excess supply of holidays C a price inelastic demand for holidays D insufficient competition in the holiday market
1 marks
Answer: B
This question in 0455/11 Oct/Nov 2007
Q7 · Due to good weather, there is a surplus in the market for an agricultural product 0455/11 May/June 2008
10 Due to good weather, there is a surplus in the market for an agricultural product. Which change would cause the market to return to equilibrium? A a decrease in demand B a fall in price C an increase in supply D a rise in price
1 marks
Answer: B
This question in 0455/11 May/June 2008
Q8 · The market for a good was in equilibrium 0455/11 May/June 2009
6 The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium with a higher price for the good and a lower quantity traded. What change would have caused this? A The demand curve moved to the left. B The demand curve moved to the right. C The supply curve moved to the left. D The supply curve moved to the right.
1 marks
Answer: C
This question in 0455/11 May/June 2009
Q9 · South African companies are planning to undertake major investment in Zimbabwe in order… 0455/11 May/June 2010
16 South African companies are planning to undertake major investment in Zimbabwe in order to mine platinum. If this investment occurs, what would happen in the short term to the supply of platinum, the price of platinum and the profits of the companies? supply curve price of platinum profits of the companies A no change rise rise B shift to left no change fall C shift to right rise rise D shift to right fall uncertain
1 marks
Answer: D
This question in 0455/11 May/June 2010
Q10 · The diagram shows the market for fresh fish in the Caribbean with equilibrium point X 0455/12 May/June 2010
6 The diagram shows the market for fresh fish in the Caribbean with equilibrium point X. New, more efficient boats with lower running costs are then used. Which point represents the new equilibrium? S3 S1 B S2 A price X C D D2 D1 O quantity
1 marks
Answer: D
This question in 0455/12 May/June 2010
Q11 · South African companies are planning to undertake major investment in Zimbabwe in order… 0455/12 May/June 2010
17 South African companies are planning to undertake major investment in Zimbabwe in order to mine platinum. If this investment occurs, what would happen in the short term to the supply of platinum, the price of platinum and the profits of the companies? supply curve price of platinum profits of the companies A no change rise rise B shift to left no change fall C shift to right rise rise D shift to right fall uncertain
1 marks
Answer: D
This question in 0455/12 May/June 2010
Q12 · The diagram shows demand and supply curves for a product at its equilibrium price P 0455/11 Oct/Nov 2010
5 The diagram shows demand and supply curves for a product at its equilibrium price P. S1 S S2 price P D1 D D2 O Q quantity How would the introduction of a subsidy be shown? A Demand would shift to D1. B Demand would shift to D2. C Supply would shift to S1. D Supply would shift to S2.
1 marks
Answer: D
This question in 0455/11 Oct/Nov 2010
Q13 · The diagram shows demand and supply curves for a product at its equilibrium price P 0455/12 Oct/Nov 2010
6 The diagram shows demand and supply curves for a product at its equilibrium price P. S1 S S2 price P D1 D D2 O Q quantity How would the introduction of a subsidy be shown? A Demand would shift to D1. B Demand would shift to D2. C Supply would shift to S1. D Supply would shift to S2.
1 marks
Answer: D
This question in 0455/12 Oct/Nov 2010
Q14 · Due to changes in the costs of production, an industry’s supply curve shifted at various… 0455/11 May/June 2011
5 Due to changes in the costs of production, an industry’s supply curve shifted at various times from S1 to either S2 or S3. S2 S1 S3 w price x y D2 D1 O quantity If a shift in supply was due to a seasonal increase in the cost of raw materials, what would have been the effect on demand? A The demand curve would move from D1 to D2. B The quantity demanded would move from x to w. C The quantity demanded would move from x to y. D The quantity demanded would remain the same at x.
1 marks
Answer: B
This question in 0455/11 May/June 2011
Q15 · Due to changes in the costs of production, an industry’s supply curve shifted at various… 0455/13 May/June 2011
9 Due to changes in the costs of production, an industry’s supply curve shifted at various times from S1 to either S2 or S3. S2 S1 S3 w price x y D2 D1 O quantity If a shift in supply was due to a seasonal increase in the cost of raw materials, what would have been the effect on demand? A The demand curve would move from D1 to D2. B The quantity demanded would move from x to w. C The quantity demanded would move from x to y. D The quantity demanded would remain the same at x.
1 marks
Answer: B
This question in 0455/13 May/June 2011
Q16 · Drought in African countries often results in poor harvests 0455/12 Oct/Nov 2011
7 Drought in African countries often results in poor harvests. Other countries then help by sending quantities of food. What are the likely results of these events for the price of food in the drought-affected countries? A It will fall and then rise. B It will rise and continue to rise. C It will rise and remain at this higher level. D It will rise and then fall.
1 marks
Answer: D
This question in 0455/12 Oct/Nov 2011
Q17 · Cleaning the streets can be an unpleasant job and yet in many countries it is badly paid 0455/12 May/June 2012
10 Cleaning the streets can be an unpleasant job and yet in many countries it is badly paid. What is likely to be the reason for this? A There is a high degree of trade union membership among these workers. B There is a high supply of labour because the work is unskilled. C There is a high demand for staff in busy urban areas. D There is a long working year because there are few holidays.
1 marks
Answer: B
This question in 0455/12 May/June 2012
Q18 · A supply curve for a commodity is drawn to show how quantity supplied varies with A… 0455/11 Oct/Nov 2012
16 A supply curve for a commodity is drawn to show how quantity supplied varies with A government taxes. B income. C tastes. D the price of the commodity.
1 marks
Answer: D
This question in 0455/11 Oct/Nov 2012
Q19 · In 2010, floods caused severe damage to wheat production 0455/11 Oct/Nov 2012
17 In 2010, floods caused severe damage to wheat production. How would this be shown on a market demand and supply diagram for wheat? supply curve demand curve A no change shift to the right B shift to the left no change C shift to the left shift to the left D shift to the right shift to the left
1 marks
Answer: B
This question in 0455/11 Oct/Nov 2012
Q20 · A supply curve for a commodity is drawn to show how quantity supplied varies with A… 0455/12 Oct/Nov 2012
6 A supply curve for a commodity is drawn to show how quantity supplied varies with A government taxes. B income. C tastes. D the price of the commodity.
1 marks
Answer: D
This question in 0455/12 Oct/Nov 2012
Q21 · In 2010, floods caused severe damage to wheat production 0455/12 Oct/Nov 2012
7 In 2010, floods caused severe damage to wheat production. How would this be shown on a market demand and supply diagram for wheat? supply curve demand curve A no change shift to the right B shift to the left no change C shift to the left shift to the left D shift to the right shift to the left
1 marks
Answer: B
This question in 0455/12 Oct/Nov 2012
Q22 · What could reduce the ability of a trade union to gain a pay rise for its members in a… 0455/12 Oct/Nov 2012
11 What could reduce the ability of a trade union to gain a pay rise for its members in a shoe factory? A an increase in sales of shoe exports B a rise in the demand for shoes C a rise in the productivity of shoe workers D more people willing to work in the shoe industry
1 marks
Answer: D
This question in 0455/12 Oct/Nov 2012
Q23 · A supply curve for a commodity is drawn to show how quantity supplied varies with A… 0455/13 Oct/Nov 2012
6 A supply curve for a commodity is drawn to show how quantity supplied varies with A government taxes. B income. C tastes. D the price of the commodity.
1 marks
Answer: D
This question in 0455/13 Oct/Nov 2012
Q24 · There are a fixed number of seats at a concert 0455/12 May/June 2013
5 There are a fixed number of seats at a concert. Most of the audience would continue to attend even if the seat prices were increased. Which demand and supply diagram represents this situation? A B C D S D D S price D price S price price S D O quantity O quantity O quantity O quantity
1 marks
Answer: C
This question in 0455/12 May/June 2013
Q25 · The graph shows the impact of a tax on the supply of petrol (gas) 0455/12 May/June 2013
23 The graph shows the impact of a tax on the supply of petrol (gas). D S2 S1 price O quantity What can be concluded from this graph? A the government will receive no tax revenue B the impact of the tax will be shared between the consumer and the producer C the impact of the tax will fall entirely upon the consumer D the impact of the tax will fall entirely on the producer
1 marks
Answer: C
This question in 0455/12 May/June 2013
Q26 · The diagrams show different conditions of demand and supply for a product 0455/11 Oct/Nov 2013
14 The diagrams show different conditions of demand and supply for a product. In which diagram would market price remain unchanged if consumers’ incomes fell? A B C D S D S S price price price price S D D D O quantity O quantity O quantity O quantity
1 marks
Answer: D
This question in 0455/11 Oct/Nov 2013
Q27 · In 2011, a company selling milk in glass bottles replaced them with new plastic bottles 0455/11 Oct/Nov 2013
15 In 2011, a company selling milk in glass bottles replaced them with new plastic bottles. When they were introduced, the equilibrium quantity on the market fell. What could be a reason for this fall? A Consumers preferred the new bottle because it was lighter to carry. B Milk from the farms used to fill the bottle cost more. C The bottle was cheaper than the existing glass bottle to produce. D The new bottle was introduced with a successful advertising campaign.
1 marks
Answer: B
This question in 0455/11 Oct/Nov 2013
Q28 · Which will encourage domestic producers to grow more maize? 0455/11 Oct/Nov 2013
18 Which will encourage domestic producers to grow more maize? A granting subsidies to maize producers B increasing the sales tax on maize C removing guaranteed minimum prices for maize D removing quotas on imported maize
1 marks
Answer: A
This question in 0455/11 Oct/Nov 2013
Q29 · Which will encourage domestic producers to grow more maize? 0455/12 Oct/Nov 2013
9 Which will encourage domestic producers to grow more maize? A granting subsidies to maize producers B increasing the sales tax on maize C removing guaranteed minimum prices for maize D removing quotas on imported maize
1 marks
Answer: A
This question in 0455/12 Oct/Nov 2013
Q30 · The diagrams show different conditions of demand and supply for a product 0455/13 Oct/Nov 2013
5 The diagrams show different conditions of demand and supply for a product. In which diagram would market price remain unchanged if consumers’ incomes fell? A B C D S D S S price price price price S D D D O quantity O quantity O quantity O quantity
1 marks
Answer: D
This question in 0455/13 Oct/Nov 2013
Q31 · Supermarkets sell petrol (gas) outside their stores 0455/13 Oct/Nov 2013
6 Supermarkets sell petrol (gas) outside their stores. They reduce the price of petrol below other suppliers to attract more customers to buy goods in the store when they buy more petrol. If this were successful, how might it be shown on demand and supply diagrams? demand and supply demand and supply diagram for petrol diagram for the store’s goods A shift of the demand curve to the left shift of the supply curve to the left B shift of the demand curve to the right shift of the demand curve to the left C shift of the supply curve to the left shift of the supply curve to the right D shift of the supply curve to the right shift of the demand curve to the right
1 marks
Answer: D
This question in 0455/13 Oct/Nov 2013
Q32 · Which will encourage domestic producers to grow more maize? 0455/13 Oct/Nov 2013
9 Which will encourage domestic producers to grow more maize? A granting subsidies to maize producers B increasing the sales tax on maize C removing guaranteed minimum prices for maize D removing quotas on imported maize
1 marks
Answer: A
This question in 0455/13 Oct/Nov 2013
Q33 · Russia is the world’s third largest exporter of grain but much of the country’s farmland… 0455/11 May/June 2014
7 Russia is the world’s third largest exporter of grain but much of the country’s farmland was damaged by fire in 2010. How would this be represented on demand and supply diagrams for the Russian grain market and for a country importing Russian grain? market for Russian grain Russian grain market in the importing country A demand curve shifts to the left demand curve shifts to the right B demand curve shifts to the right supply curve shifts to the right C supply curve shifts to the left supply curve shifts to the left D supply curve shifts to the right demand curve shifts to the left
1 marks
Answer: C
This question in 0455/11 May/June 2014
Q34 · A supply curve shows the link between the quantity supplied and A demand 0455/12 May/June 2014
4 A supply curve shows the link between the quantity supplied and A demand. B equilibrium output. C the price of the product. D the scale of production.
1 marks
Answer: C
This question in 0455/12 May/June 2014
Q35 · In 2011 the US Government declared that the country must increase the manufacture of fuel… 0455/12 May/June 2014
7 In 2011 the US Government declared that the country must increase the manufacture of fuel from crops such as corn that have previously only been used for food. What is likely to happen in the market for corn? A a movement along the demand curve for corn B a movement along the supply curve for corn C a shift to the left in the demand curve for corn D a shift to the left in the supply curve for corn
1 marks
Answer: B
This question in 0455/12 May/June 2014
Q36 · Russia is the world’s third largest exporter of grain but much of the country’s farmland… 0455/13 May/June 2014
5 Russia is the world’s third largest exporter of grain but much of the country’s farmland was damaged by fire in 2010. How would this be represented on demand and supply diagrams for the Russian grain market and for a country importing Russian grain? market for Russian grain Russian grain market in the importing country A demand curve shifts to the left demand curve shifts to the right B demand curve shifts to the right supply curve shifts to the right C supply curve shifts to the left supply curve shifts to the left D supply curve shifts to the right demand curve shifts to the left
1 marks
Answer: C
This question in 0455/13 May/June 2014
Q37 · The diagram shows the market for refined oil with equilibrium of X 0455/11 Oct/Nov 2014
5 The diagram shows the market for refined oil with equilibrium of X. What will be the new equilibrium when a major oil refinery shuts down for repair work? S2 D2 S1 D1 A B S3 D3 X price C D O quantity
1 marks
Answer: B
This question in 0455/11 Oct/Nov 2014
Q38 · The diagram shows the market for refined oil with equilibrium of X 0455/12 Oct/Nov 2014
7 The diagram shows the market for refined oil with equilibrium of X. What will be the new equilibrium when a major oil refinery shuts down for repair work? S2 D2 S1 D1 A B S3 D3 X price C D O quantity
1 marks
Answer: B
This question in 0455/12 Oct/Nov 2014
Q39 · The government reduces the rate of income tax and increases the rate of tax on producers 0455/11 May/June 2015
19 The government reduces the rate of income tax and increases the rate of tax on producers. From the initial equilibrium point X, which letter indicates the new equilibrium point in the market? S2 B A S1 price S3 X C D D2 D1 D3 O quantity
1 marks
Answer: B
This question in 0455/11 May/June 2015
Q40 · The diagram shows the market for fresh fish in the Caribbean with initial equilibrium… 0455/12 May/June 2015
7 The diagram shows the market for fresh fish in the Caribbean with initial equilibrium point X. A new type of fishing boat increases production, which reduces costs. Which point represents the new equilibrium? S3 S1 S2 B A price X C D D2 D1 O quantity
1 marks
Answer: D
This question in 0455/12 May/June 2015
Q41 · The diagram shows the market for fresh fish in the Caribbean with initial equilibrium… 0455/13 May/June 2015
7 The diagram shows the market for fresh fish in the Caribbean with initial equilibrium point X. A new type of fishing boat increases production, which reduces costs. Which point represents the new equilibrium? S3 S1 S2 B A price X C D D2 D1 O quantity
1 marks
Answer: D
This question in 0455/13 May/June 2015
Q42 · Air travel and rail travel are substitute forms of transport 0455/11 Oct/Nov 2015
7 Air travel and rail travel are substitute forms of transport. The diagram shows the effect of new technology on the market for air travel. S1 S2 price per P1 ticket P2 D O Q1 Q2 quantity of airline tickets What would be the most likely effect on the market for rail transport? A a decrease in demand for rail transport B an increase in the price of rail tickets C an increase in supply of rail transport D an increase in the total income of rail companies
1 marks
Answer: A
This question in 0455/11 Oct/Nov 2015
Q43 · The diagram shows the market for imported cars 0455/11 Oct/Nov 2015
28 The diagram shows the market for imported cars. S2 S1 price D O quantity of cars Which government action could be shown by the change in the diagram? A an embargo B an exchange rate revaluation (appreciation) C an import tax D a quota
1 marks
Answer: D
This question in 0455/11 Oct/Nov 2015
Q44 · In August 2013, a lengthy strike in north-east India, where the finest and most expensive… 0455/12 Oct/Nov 2015
6 In August 2013, a lengthy strike in north-east India, where the finest and most expensive Darjeeling tea is grown, shut down the tea industry at harvest time. What is the likely outcome of such a situation on a demand and supply diagram for Darjeeling tea? A The price will rise because demand will switch to other teas. B The price will rise because the strike will cause a movement down the supply curve. C The price will rise because the supply curve will move to the left. D The price will rise because there will be a fall in demand for the remaining Darjeeling tea.
1 marks
Answer: C
This question in 0455/12 Oct/Nov 2015
Q45 · Air travel and rail travel are substitute forms of transport 0455/12 Oct/Nov 2015
7 Air travel and rail travel are substitute forms of transport. The diagram shows the effect of new technology on the market for air travel. S1 S2 price per P1 ticket P2 D O Q1 Q2 quantity of airline tickets What would be the most likely effect on the market for rail transport? A a decrease in demand for rail transport B an increase in the price of rail tickets C an increase in supply of rail transport D an increase in the total income of rail companies
1 marks
Answer: A
This question in 0455/12 Oct/Nov 2015
Q46 · A government taxes the production of cars 0455/11 May/June 2016
4 A government taxes the production of cars. What is likely to decrease? A the cost of supplying cars B the price of cars C the revenue for the government D the supply of cars at every price
1 marks
Answer: D
This question in 0455/11 May/June 2016
Q47 · The diagram shows the market for rice 0455/11 May/June 2016
7 The diagram shows the market for rice. S2 S1 P2 price P1 D O Q2 Q1 quantity What would have caused the equilibrium price to rise from OP1 to OP2? A a government subsidy to rice farmers B a successful advertising campaign for rice C improved rice farming methods D poor weather conditions
1 marks
Answer: D
This question in 0455/11 May/June 2016
Q48 · A government taxes the production of cars 0455/12 May/June 2016
4 A government taxes the production of cars. What is likely to decrease? A the cost of supplying cars B the price of cars C the revenue for the government D the supply of cars at every price
1 marks
Answer: D
This question in 0455/12 May/June 2016
Q49 · A government taxes the production of cars 0455/13 May/June 2016
4 A government taxes the production of cars. What is likely to decrease? A the cost of supplying cars B the price of cars C the revenue for the government D the supply of cars at every price
1 marks
Answer: D
This question in 0455/13 May/June 2016
Q50 · In the diagram, D1D1 and S1S1 represent the demand for and the supply of labour 0455/13 May/June 2016
10 In the diagram, D1D1 and S1S1 represent the demand for and the supply of labour. W indicates a legal minimum wage. An influx of immigrant labour causes the supply curve for labour to shift from S1S1 to S2S2. D1 S1 S2 W wage ($) S1 D1 S2 0 1 2 3 4 5 6 7 8 9 10 labour (millions) How many people will be employed if the minimum wage legislation is then abolished? A 4 million B 5 million C 6 million D 7 million
1 marks
Answer: D
This question in 0455/13 May/June 2016
Q51 · A government subsidises the production of pineapples 0455/12 Oct/Nov 2016
6 A government subsidises the production of pineapples. This is likely to A increase the price of pineapples B raise the costs of supplying pineapples C raise revenue for the government D cause the supply of pineapples to increase at every price
1 marks
This question in 0455/12 Oct/Nov 2016
Q52 · A government gives farmers a subsidy of $5 per kilo to supply food on the open market… 0455/12 Oct/Nov 2016
19 A government gives farmers a subsidy of $5 per kilo to supply food on the open market where X is the original equilibrium position. The effect is illustrated in the diagram. S3 S1 20 S2 X 15 price ($ per kilo) 10 D1 5 0 4 8 12 16 20 24 quantity supplied (000 kilos) What will be the new equilibrium price and quantity supplied as a result of the subsidy? equilibrium price quantity supplied ($ per kilo) (000 kilos) A 10 16 B 13 20 C 15 16 D 20 8
1 marks
This question in 0455/12 Oct/Nov 2016
Q53 · A government subsidises the production of pineapples 0455/13 Oct/Nov 2016
6 A government subsidises the production of pineapples. This is likely to A increase the price of pineapples. B raise the costs of supplying pineapples. C raise revenue for the government. D cause the supply of pineapples to increase at every price.
1 marks
Answer: D
This question in 0455/13 Oct/Nov 2016
Q54 · What will be the impact on the market for oil of the closure of the world’s largest oil… 0455/12 Feb/March 2017
5 What will be the impact on the market for oil of the closure of the world’s largest oil field for maintenance work? A a movement down the supply curve B a movement up the demand curve C a shift of the demand curve to the left D a shift of the supply curve to the right
1 marks
Answer: B
This question in 0455/12 Feb/March 2017
Q55 · The Indian government gives farmers a subsidy of $5 per kilo to supply food in a market… 0455/12 Feb/March 2017
19 The Indian government gives farmers a subsidy of $5 per kilo to supply food in a market where X is the equilibrium position. The effect is illustrated in the diagram below. S3 S1 20 S2 price ($ per kilo) X 15 10 D1 5 0 5 10 15 20 25 30 quantity supplied (’000 kilos) What will be the new equilibrium price and quantity supplied as a result of the subsidy? equilibrium price quantity supplied ($ per kilo) (’000 kilos) A 10 20 B 13 25 C 15 20 D 20 10
1 marks
Answer: B
This question in 0455/12 Feb/March 2017
Q56 · In 2015 there was a significant fall in the world price of petrol (gasoline) 0455/12 May/June 2017
7 In 2015 there was a significant fall in the world price of petrol (gasoline). What would not have been a cause of the price fall? A the continuing global recovery from the world economic recession B the increasing exploitation of US oil reserves C the re-entry of Iranian producers to the world oil market D the shorter journeys from using the new Suez Canal
1 marks
Answer: A
This question in 0455/12 May/June 2017
Q57 · In recent years the price of crude oil on the world market has fallen dramatically 0455/13 Oct/Nov 2017
7 In recent years the price of crude oil on the world market has fallen dramatically. One cause has been the increase in oil obtained by the new extraction process of fracking. How is this shown on a demand and supply diagram of the market for crude oil? A a shift in the demand curve to the left B a shift in the demand curve to the right C a shift in the supply curve to the left D a shift in the supply curve to the right
1 marks
Answer: D
This question in 0455/13 Oct/Nov 2017
Q58 · In the diagram, which level of subsidy per kilo would a government have to give to… 0455/11 Oct/Nov 2018
18 In the diagram, which level of subsidy per kilo would a government have to give to producers to encourage them to increase production from 20 kilos per week to 30 kilos per week? S1 price (US$) 20 S2 15 12 D 0 0 20 30 kilos per week A US$3 per kilo B US$5 per kilo C US$8 per kilo D US$15 per kilo
1 marks
Answer: C
This question in 0455/11 Oct/Nov 2018
Q59 · In 2015, the world price of oil fell rapidly due to changes in the conditions of demand… 0455/13 Oct/Nov 2018
6 In 2015, the world price of oil fell rapidly due to changes in the conditions of demand and supply. One change was the use of a new method of extraction called fracking. Which event would not have contributed to the fall in prices? A China’s growth slowed leading to lower oil imports. B Saudi Arabia increased the volume of its oil supplies. C UK protest groups prevented the introduction of fracking projects. D USA became more self-sufficient in oil due to fracking and reduced imports.
1 marks
Answer: C
This question in 0455/13 Oct/Nov 2018
Q60 · The diagram shows the demand curve D1 and supply curve S1 for a good 0455/11 May/June 2019
18 The diagram shows the demand curve D1 and supply curve S1 for a good. The government introduces a subsidy to encourage production. price S1 $ S2 30 25 20 D1 0 4 5 quantity What will be the total cost of the subsidy to the government? A $40 B $50 C $100 D $150
1 marks
Answer: B
This question in 0455/11 May/June 2019
Q61 · What can cause the supply curve for a product to shift to the right? 0455/12 Oct/Nov 2019
6 What can cause the supply curve for a product to shift to the right? A an increase in demand for the product B an increase in government subsidies to producers C an increase in indirect taxes on the product D an increase in the costs of production
1 marks
Answer: B
This question in 0455/12 Oct/Nov 2019
Q62 · In 2018 the UK government introduced a tax on the production of sugary drinks 0455/12 Feb/March 2020
6 In 2018 the UK government introduced a tax on the production of sugary drinks. How would this affect the market for sugary drinks as shown on a demand and supply diagram? demand curve supply curve for sugary drinks of sugary drinks A contraction in demand shift to the left B extension in demand shift to the right C shift to the left contraction in supply D shift to the right extension in supply
1 marks
This question in 0455/12 Feb/March 2020
Q63 · What is not held constant when constructing the supply curve of a firm? 0455/12 Feb/March 2020
7 What is not held constant when constructing the supply curve of a firm? A indirect taxes and subsidies on the firm’s products B the level of technology used by the firm in production C the price of the factors of production paid for by the firm D the market price of the good produced by the firm
1 marks
This question in 0455/12 Feb/March 2020
Q64 · The diagrams show the supply curve for an individual grower of tomatoes and for the total… 0455/12 May/June 2020
6 The diagrams show the supply curve for an individual grower of tomatoes and for the total market supply of tomatoes. individual grower total market 3.0 3.0 price price per kg per kg ($) ($) 1.5 1.5 0.5 0.5 0 0 1000 3000 6000 100 000 300 000 600 000 quantity quantity (kilograms) (tonnes) What explains the similarity of the two curves? A As costs rise growers need to get a higher price to increase output. B At the lower prices each grower supplies more tomatoes. C The profitability per unit is the same for all growers irrespective of output. D Supply is not always influenced by price.
1 marks
Answer: A
This question in 0455/12 May/June 2020
Q65 · The diagrams show changes in the market conditions for coffee 0455/13 May/June 2020
6 The diagrams show changes in the market conditions for coffee. Which diagram shows the effect of a poor harvest of coffee beans? A B price S2 price S1 S1 S2 D D O O quantity quantity C D price price S S D2 D1 D1 D2 O O quantity quantity
1 marks
Answer: A
This question in 0455/13 May/June 2020
Q66 · The diagram shows a shift in the supply curve for cars in China from S1 to S2 0455/11 Oct/Nov 2020
6 The diagram shows a shift in the supply curve for cars in China from S1 to S2. price S2 S1 O quantity What is the most likely cause of this shift in the supply curve? A an increase in an indirect tax on petrol in China B an increase in the price of cars in China C an increase in the wages of Chinese car workers D a new subsidy given to Chinese car manufacturers
1 marks
Answer: C
This question in 0455/11 Oct/Nov 2020
Q67 · The diagram shows how a government policy influences the market for biofuel crops in the… 0455/11 Oct/Nov 2020
19 The diagram shows how a government policy influences the market for biofuel crops in the private sector. price supply of biofuel crops supply after policy applied demand for biofuel crops O quantity According to the diagram, which policy does the government use and what effect does it have on the market? policy effect A subsidy increases supply B subsidy lowers quantity demanded C tax decreases demand D tax increases supply costs
1 marks
Answer: A
This question in 0455/11 Oct/Nov 2020
Q68 · What might cause a rise in wages? 0455/12 Feb/March 2021
10 What might cause a rise in wages? A a more elastic supply of labour B an increase in the size of the labour force C improved fringe benefits for workers D the introduction of a national minimum wage
1 marks
Answer: D
This question in 0455/12 Feb/March 2021
Q69 · The diagrams show changes in the demand and supply curves for a good 0455/11 Oct/Nov 2021
7 The diagrams show changes in the demand and supply curves for a good. Which diagram shows the effect of a government providing a subsidy for the good? A B price price S1 S1 S2 P2 P1 P1 P2 D2 D1 D1 O Q1 Q2 O Q1 Q2 quantity quantity C D S2 price price S1 S1 P1 P2 P2 P1 D1 D2 D1 O Q2 Q1 O Q2 Q1 quantity quantity
1 marks
Answer: A
This question in 0455/11 Oct/Nov 2021
Q70 · An economy relies on potash to make fertiliser 0455/12 Oct/Nov 2021
7 An economy relies on potash to make fertiliser. A new deposit of potash is discovered. Which diagram shows this change in the market for potash? A B S1 S1 price price D2 D1 D1 D2 O O quantity quantity C D S2 S1 price price S1 S2 D1 D1 O O quantity quantity
1 marks
Answer: D
This question in 0455/12 Oct/Nov 2021
Q71 · The diagram shows the imposition of a subsidy on a product supplied by a firm 0455/12 Oct/Nov 2021
12 The diagram shows the imposition of a subsidy on a product supplied by a firm. S1 price S2 G H F J E K D O L M quantity Which area represents the total revenue of the firm including the subsidy? A EGHK B OEKM C OFJL D OGHM
1 marks
Answer: D
This question in 0455/12 Oct/Nov 2021
Q72 · The diagram shows a shift in the supply curve for New Zealand’s airlines from S1 to S2 0455/13 Oct/Nov 2021
7 The diagram shows a shift in the supply curve for New Zealand’s airlines from S1 to S2. S1 price S2 O quantity What is the cause of this shift? A a decrease in the costs of New Zealand’s airlines B a decrease in the number of people wanting to fly to New Zealand C an increase in the price of train and bus travel in New Zealand D an increase in the tax on air travel in New Zealand
1 marks
Answer: A
This question in 0455/13 Oct/Nov 2021
Q73 · A manufacturer of tinned beans mechanises its assembly line 0455/13 May/June 2022
8 A manufacturer of tinned beans mechanises its assembly line. This increases output by 30% and reduces labour by 20%. How and why will this affect supply curve S? S price of tinned beans O quantity of tinned beans A S will move to the left due to an increase in average costs. B S will move to the left due to an increase in the price of tinned beans. C S will move to the right due to an increase in consumer demand. D S will move to the right due to an increase in productivity.
1 marks
Answer: D
This question in 0455/13 May/June 2022
Q74 · The diagram shows the supply of motor vehicles 0455/11 Oct/Nov 2022
5 The diagram shows the supply of motor vehicles. S1 price S2 O quantity What will cause a shift in the supply curve from S1 to S2? A a decrease in the profits of suppliers B a fall in the real incomes of customers C a more efficient assembly line using robots D a rise in the cost of motor vehicle components
1 marks
Answer: C
This question in 0455/11 Oct/Nov 2022
Q75 · The diagram shows the demand for and supply of plastic bags 0455/11 Oct/Nov 2022
6 The diagram shows the demand for and supply of plastic bags. The original equilibrium price is P. S2 price S1 S3 P D2 D1 D3 O Q quantity How would the introduction of a unit tax on plastic bags be shown? A Demand would shift to D2. B Demand would shift to D3. C Supply would shift to S2. D Supply would shift to S3.
1 marks
Answer: C
This question in 0455/11 Oct/Nov 2022
Q76 · The market for a good was in equilibrium 0455/12 Feb/March 2023
4 The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium with a higher price for the good and a lower quantity traded. Which change would have caused this? A The demand curve moved to the left. B The demand curve moved to the right. C The supply curve moved to the left. D The supply curve moved to the right.
1 marks
Answer: C
This question in 0455/12 Feb/March 2023
Q77 · What would bring about a movement upwards along the supply curve for rice? 0455/11 May/June 2023
9 What would bring about a movement upwards along the supply curve for rice? A a decrease in the productivity of farmworkers B a decrease in the profitability of rice production C an increase in consumers’ incomes D an increase in farmworkers’ wages
1 marks
Answer: C
This question in 0455/11 May/June 2023
Q78 · The diagram shows the supply curve for coffee 0455/12 May/June 2023
7 The diagram shows the supply curve for coffee. supply price P2 P1 O Q1 Q2 quantity The price of coffee increases from P1 to P2. How would this benefit firms in the coffee industry? A A higher price gives firms the ability to increase profits. B A higher price gives firms the incentive to reduce total fixed costs. C A higher price will encourage consumers to buy more coffee increasing total revenue. D A higher price will encourage less firms to enter the market to supply coffee.
1 marks
Answer: A
This question in 0455/12 May/June 2023
Q79 · The diagram shows the supply curve for a good 0455/13 May/June 2023
6 The diagram shows the supply curve for a good. price $ S Y X O quantity What is the name and cause of the movement from X to Y? A a contraction of supply caused by a decrease in demand B a contraction of supply caused by an increase in demand C an extension of supply caused by a decrease in demand D an extension of supply caused by an increase in demand
1 marks
Answer: D
This question in 0455/13 May/June 2023
Q80 · What does a supply curve show? 0455/11 Oct/Nov 2023
6 What does a supply curve show? A A firm will supply more when consumers’ purchasing power increases. B The higher the price, the fewer goods are supplied as costs of production increase. C The lower the price, the more profit is made by the firm. D There is a positive relationship between quantity supplied and price.
1 marks
Answer: D
This question in 0455/11 Oct/Nov 2023
Q81 · What would cause the supply curve for an agricultural product to shift to the right? 0455/13 Oct/Nov 2023
6 What would cause the supply curve for an agricultural product to shift to the right? A an increase in the costs of production B an increase in the price of substitutes C an increase in the price of the good D an increase in the productivity of farms
1 marks
Answer: D
This question in 0455/13 Oct/Nov 2023
Q82 · What would not cause a shift in the supply curve? 0455/12 Feb/March 2024
5 What would not cause a shift in the supply curve? A changes in costs of production B changes in direct taxes C changes in indirect taxes D changes in a subsidy from the government
1 marks
Answer: B
This question in 0455/12 Feb/March 2024
Q83 · The diagram shows the demand for and the supply of labour for farm workers 0455/12 Feb/March 2024
12 The diagram shows the demand for and the supply of labour for farm workers. The initial equilibrium is X. What will be the new equilibrium if there is an increase in labour productivity? S3 wage S1 rate S2 D A X C B D2 D1 D3 O quantity
1 marks
Answer: A
This question in 0455/12 Feb/March 2024
Q84 · Supermarkets sell petrol (gas) outside their stores 0455/12 May/June 2024
6 Supermarkets sell petrol (gas) outside their stores. They reduce the price of petrol below other suppliers to attract more customers to buy goods in the store when they buy more petrol. If this were successful, how might it be shown on demand and supply diagrams? demand and supply diagram for the demand and supply diagram for petrol store’s goods A shift of the demand curve to the left shift of the supply curve to the left B shift of the demand curve to the right shift of the demand curve to the left C shift of the supply curve to the left shift of the supply curve to the right D shift of the supply curve to the right shift of the demand curve to the right
1 marks
Answer: D
This question in 0455/12 May/June 2024
Q85 · The graph shows the impact of a tax on the supply of petrol (gas) 0455/11 Oct/Nov 2024
19 The graph shows the impact of a tax on the supply of petrol (gas). D S2 price S1 O quantity What can be concluded from this graph? A The government will receive no tax revenue. B The impact of the tax will be shared between the consumer and the producer. C The impact of the tax will fall entirely upon the consumer. D The impact of the tax will fall entirely on the producer.
1 marks
Answer: C
This question in 0455/11 Oct/Nov 2024
Q86 · A period of bad weather leads to a failure of the rice crop 0455/12 Oct/Nov 2024
4 A period of bad weather leads to a failure of the rice crop. What is the effect on the market for rice? A a shortage of rice and a fall in its price B a shortage of rice and a rise in its price C a surplus of rice and a fall in its price D a surplus of rice and a rise in its price
1 marks
Answer: B
This question in 0455/12 Oct/Nov 2024
Q87 · The table shows the supply for a product at different prices 0455/12 Oct/Nov 2024
6 The table shows the supply for a product at different prices. price supply ($) (units) 10 120 12 160 14 200 16 240 18 280 If the price changes from $12 to $14, what will be the change in supply? A Supply will contract by 40 units and there will be a movement down along the supply curve. B Supply will contract by 200 units and there will be an inward shift of the supply curve. C Supply will extend by 40 units and there will be a movement up along the supply curve. D Supply will extend by 200 units and there will be an outward shift of the supply curve.
1 marks
Answer: C
This question in 0455/12 Oct/Nov 2024
Q88 · The table shows the amounts demanded and supplied of tomatoes at different prices 0455/13 Oct/Nov 2024
5 The table shows the amounts demanded and supplied of tomatoes at different prices. The initial equilibrium is at a price of $40. price demand supply ($) (kg) (kg) 10 20 2 20 16 5 30 12 8 40 10 10 50 8 12 The following year, more efficient harvesting means that the supply increases by 50% at each price. What will happen to the suppliers’ total revenue? A It will fall by $10. B It will fall by $40. C It will rise by $10. D It will rise by $200.
1 marks
Answer: B
This question in 0455/13 Oct/Nov 2024
Q89 · A country wishes to increase the supply of nurses 0455/13 Oct/Nov 2024
12 A country wishes to increase the supply of nurses. What would be the most effective way of achieving this? A extending the training period for nurses B improving the working conditions of nurses C increasing the national minimum wage D reducing grants for trainee nurses
1 marks
Answer: B
This question in 0455/13 Oct/Nov 2024
Q90 · The diagram shows demand and supply curves for a product at its equilibrium price P 0455/11 May/June 2025
6 The diagram shows demand and supply curves for a product at its equilibrium price P. S1 S price S2 P D2 D D1 O Q quantity How would the introduction of a subsidy be shown? A Demand would shift to D1. B Demand would shift to D2. C Supply would shift to S1. D Supply would shift to S2.
1 marks
Answer: D
This question in 0455/11 May/June 2025
Q91 · A bus driver initially works longer hours if the wage rate increases 0455/11 May/June 2025
12 A bus driver initially works longer hours if the wage rate increases. As his earnings increase, there reaches a point when he prefers more leisure than extra work. Which supply curve, S, represents this situation? A B C D S S wage wage wage wage rate S rate rate rate S O worker O worker O worker O worker hours hours hours hours
1 marks
Answer: C
This question in 0455/11 May/June 2025
Q92 · The diagram shows the supply and demand curves for a good 0455/12 Oct/Nov 2025
5 The diagram shows the supply and demand curves for a good. The initial market equilibrium is given at point E1. There is a change in the market that leads to a new equilibrium at E2. price supply E2 E1 Pe demand O Qe quantity What is the cause of the change in the market equilibrium? A a decrease in the price of a substitute good B a decrease in raw material prices C an increase in the price of a substitute good D an increase in raw material prices
1 marks
Answer: C
This question in 0455/12 Oct/Nov 2025
Q93 · The diagram shows the market for fresh fish in the Caribbean with equilibrium point X 0455/13 Oct/Nov 2025
5 The diagram shows the market for fresh fish in the Caribbean with equilibrium point X. A new type of fishing boat increases production, which reduces costs. Which point represents the new equilibrium? S3 price S1 S2 B A X C D D2 D1 O quantity
1 marks
Answer: D
This question in 0455/13 Oct/Nov 2025
Q94 · The table shows the market schedule for good X 0455/13 Oct/Nov 2025
6 The table shows the market schedule for good X. quantity quantity price supplied demanded 10 400 100 9 300 200 8 200 300 7 100 400 If the quantity supplied increases by 50% at each price, what will the equilibrium price and quantity be? price quantity A 10 100 B 9 200 C 8 300 D 7 400
1 marks
Answer: C
This question in 0455/13 Oct/Nov 2025
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