Economics
Frequently asked questions and answers
Test your knowledge!

Explain the advantages a firm may gain from being a monopoly.

Explain the benefits to a government from a fall in unemployment.

Explain the causes of unemployment and consider which is most likely to occur in a developing country. [12]

Cambridge A level June 2021 Paper 4

Explain the economic concepts shown by a production possibility curve diagram.

Explain the influence of opportunity cost on consumers’ decisions.

Explain the opportunity costs a government might face when making decisions

Explain the possible reason why the owners of a café may aim to make a profit

Explain the reason why the UK government aims for a low inflation rate

Explain the reasons why income inequality occurs.

Explain the reasons why productivity may fall.

Explain two benefits of an increase in world output.

Explain what is meant by ‘market failure’ and consider how far government intervention can reduce market failure.

Cambridge A level June 2019 paper 4

Explain why a government may aim for balance on the current account.

Explain why a government would want to turn its country from a developing into a developed country.

Explain why rapid economic growth may be harmful to individuals in an economy

Explain why the price of housing may increase.

Free markets make the most efficient use of resources and are the foundation of a successful economy.’ To
what extent do you agree with this? [25]

GDP is the total output, income or expenditure of an economy.

How can a developing country will benefit from the removal of trade restrictions?

Identify the causes of an ageing population

Identify ways a commercial bank differs from a central bank.

Should a country mine all its diamonds and sell them as quickly as possible?

Should a government encourage people to save more.

State the functions of money.

State three costs to individual workers from specialisation.