Adani International School Term 1 Examination 2023 – 24 Subject: Economics Grade & Section: IX A Writing Time: 1 Hour 20 Mins Date: 03/11/23 Roll No: Reading Time: NA Name of the Candidate: Instructions: • Answer all questions. • You must answer on the question paper. • No additional materials are needed. • Calculator is allowed. • Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs. • Write your details in the space provided at the top of the page. • Write your answer to each question in the space provided. • Do not use an erasable pen or correction fluid. INFORMATION ● The total mark for this paper is 50. ● The number of marks for each question or part question is shown in brackets [ ]. Marks Obtained Signature of the Signature of the invigilator examiner Maximum Marks 50 Note: This document consists of 14 printed pages and zero blank pages. P a g e 1 | 14 1. Using all available resources an economy produces different combinations of two types of good, clothes and food, shown on the production possibility curve (PPC) diagram. What does the PPC indicate? A It is more efficient to produce more of clothes than food. B It is only possible to increase the output of clothes by reducing the output of food. C The best situation is to produce equal units of clothes and food. D The cost of producing a unit of clothes is always higher than the cost of producing a unit of food. Answer: [1] 2. Uzi makes a living by selling paintings of the town in which she lives. She sells them in an open-air market once a week. In order to be able to sell more pictures in a week she decides to buy a studio, pay someone to help in the studio and try to increase demand by advertising in the local paper. Which factors of production were changed? A capital only B labour and capital C labour and land D labour only Answer: [1] 3. A market consists of 10 individuals with different demand curves in a given period. What is a calculation that could be used as part of the process to determine the market equilibrium in that period? A at each price add the quantities demanded by each individual B at each quantity average the price that each individual is prepared to pay C combine the PED and the PES at each price D determine the PED and multiply it by the quantity demanded Answer: [1] P a g e 2 | 14 4. How might the concept of price elasticity of demand (PED) be useful for a government? A to determine the effect on employment of a change in income tax B to determine the effect on government revenue of a rise in the rate of interest C to determine the effect of providing a public good D to determine the result of imposing a tariff on imports Answer: [1] 5. What is part of the economic definition of scarcity? A high levels of taxation B low levels of investment C unequal distribution of income D unlimited consumer wants Answer: [1] 6. A country’s production possibility curve (PPC) moves from PPC1 to PPC2. What could cause this movement in the PPC? Answer: [1] P a g e 3 | 14 7. Good X is demanded in two areas, Y and Z. The table shows the amount of X demanded in these areas at different prices. What can be concluded from the table? A Consumers in area Y are more willing and able than consumers in area Z to buy good X. B Consumers in area Y are richer than consumers in area Z. C Consumers in area Y want the good more than consumers in area Z. D There are more consumers living in area Y than in area Z Answer: [1] 8. Which price elasticity of demand (PED) would cause an increase in total revenue if the price of the good increased? A perfectly elastic B relatively elastic C relatively inelastic D unitary elastic Answer: [1] 9. The diagram shows the supply curve for coffee. P a g e 4 | 14 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. Answer: [1] 10. The price of a good increases. What could cause this? A The cost of raw materials falls. B The incomes of consumers rise. C The price of a complement rises. D The price of a substitute falls. Answer: [1] 11. Which factor of production is not represented in the list shown? A capital B enterprise C labour D land Answer: [1] 12. What do economies aim to achieve in tackling the economic problem of scarcity? A equal balance between public and private sectors B equal reward for equal effort C increased competition in the use of resources D optimum allocation of finite resources Answer: [1] 13. The diagram shows the market for a firm making clothing with an initial equilibrium of X. What will be the new equilibrium if there is a successful advertising campaign by a rival firm and an increase in workers’ wages? P a g e 5 | 14 (A, B, C and D options are reflecting in the diagram above. Choose one of the options). Answer: [1] 14. The table shows the demand and supply for spices in a market in Africa. When the price rises from US$20 to US$30 per kg, what is the price elasticity of demand (PED) for spices? A 0.25 B 0.5 C 1.0 D 2.0 Answer: 15. Petrol (fuel) retailers in a country have noticed a sharp increase in sales in August when many people take their holidays. Why might this take place? A Consumers’ demand curve for petrol shifts to the left in August. B Consumers’ demand curve for petrol shifts to the right in August. C Oil refineries increase their output in August. D Travel companies increase their hotel prices in August. Answer: [1] P a g e 6 | 14 16. The table shows the demand for chocolates at two different prices. What is the price elasticity of demand when the price falls from $0.50 to $0.45? A less than 0.5 B between 0.5 and 1 C between 1 and 1.5 D greater than 1.5 Answer: [1] 17. There is a range of factors that influence the supply of economic goods, including natural disasters. Recently a series of earthquakes in one country destroyed buildings, including factories and offices. One factory that survived has since increased its scale of production. This firm has employed more factors of production and has experienced a fall in its average cost of production. (a) Define economic good. …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... [2] (b) Explain two influences on what factors of production a firm uses. .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... P a g e 7 | 14 .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... [4] (c) Analyze using a production possibility curve diagram (PPC), the effect of the destruction of some of its resources on an economy. …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... P a g e 8 | 14 .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... [6] 18. Taxi drivers usually have to buy a licence to carry passengers. The relatively high fixed cost of the licence discourages some people from becoming taxi drivers. Encouraging more people to be taxi drivers would be likely to reduce taxi fares and unemployment. It may, however, increase traffic congestion. Analyse how a taxi firm can use information about price elasticity of demand for its service. …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... P a g e 9 | 14 …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... [6] 19. Singapore is a high-income country with a shortage of land and labour. Singapore is often given as an example of a market economy. The Singaporean government does, however, intervene in the economy. For example, it encourages its population to eat two servings of fruit and two servings of vegetables per day. (a) Identify the reward to labour and the reward to land. .......................................................................................................................................... ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... [2] P a g e 10 | 14 (b) Explain how an increase in a worker’s income can affect their mobility of labour. …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... [4] (c) Analyze, using a demand and supply diagram, how a greater awareness of the health benefits of eating fruit will affect the market for fruit. …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... P a g e 11 | 14 ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... [6] 20.Shafaya became the first female doctor in Turkey in 1923. By 2020, 40% of Turkish doctors were women. Over this period, labour productivity increased. Turkey also experienced advances in technology and a significant increase in the size of its population. Explain two reasons why someone may choose to become a doctor. …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... P a g e 12 | 14 ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... [4] Extra Space is provided below for re-writing any of the above answers from question 17 to 20. If you use the below space, mention the question number and sub question number clearly. …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... P a g e 13 | 14 .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... …………................................................................................................................................ .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... ......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... P a g e 14 | 14
