Economics
Frequently asked questions and answers
Test your knowledge!

Analyse why a firm may become more capital-intensive

Analyse why more women may enter the labour force.

Analyse why the children of the rich tend to become rich adults.

Analyse why the children of the rich tend to become rich adults.

Analyse why the demand for a product may become more elastic over time

Cyclical and structural unemployment are the most common types of unemployment.
Explain the causes of these types of unemployment and assess the effectiveness of government policies to reduce them.[25]

Cambridge a level june 2019

Define a substitute and give an example

Define earnings.

Define private cost.

Discuss the extent to which gross domestic product (GDP) is a useful measure of living standards and
economic development. [25]

Discuss the extent to which the Human Development Index (HDD and the Measure of Economic Welfare
(MEW) provide better measures of living standards than Gross National Income (GNI). [25]

Cambridge A LEVEL June 2021 Paper 4

Discuss whether or not MNCs improve the economic performance of the host countries in which they operate.

Discuss whether or not developing countries benefit from producing mainly primary products.

Discuss whether people would prefer to buy a product from a small firm or a large firm.

Discuss whether profit maximisation is the beststrategy in the long run for firms in different market structures. [13]

A level Cambridge november 2019 paper 4

Discuss whether small firms can compete successfully against large firms.

Discuss whether solving the problem of unemployment should be the mam policy objective for the
government of a developing country. [13]

Cambridge A level June 2021 Paper 4

Evaluate how the relative size of injections into and leakages from the circular flow of income can affect the
ability of a government to achieve its macroeconomic aims. [25]

Cambridge A level 2019

Explain how a country could have a trade in goods surplus but a deficit on the current account on the balance of payments.

Explain how a fall in its foreign exchange rate will be a disadvantage to an economy.

Explain how a fall in its foreign exchange rate will benefit an economy

Explain how a stock exchange could encourage economic growth.

Explain how frictional unemployment differs from cyclical unemployment. [4]

Explain one reason why the UK government may want to reduce a budget deficit

Explain some positive externalites that could result from building a new motorway.