EXAM
Term 2, August - December 2022
Subject :
0455 Economics (Paper 1)
Level :
Year 10
Duration :
1 hour 30 minutes
Date :
16 March 2023
Day :
Thursday
Instructions :
Answer all questions.
Write in dark blue or black pen.
You may use a pencil for diagrams or graphs.
Only begin and turn to the next page after instructions are given.
Additional instructions : N/A
Name :
____________________________________________________________
Score :
____________________________________________________________
Honour Pledge
I affirm that I will not give or receive any unauthorised help and that all work is my own.
Signature :
____________________________________________________________
Remarks by Teacher :
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
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Multiple Choice Questions:
1. What is an example of free good?
A.
Housing
B.
Water supply
C.
Badminton racket
D.
Computer
2. What is the generic name for the machinery required in the production process?
A. Capital
B. Labour
C. Enterprise
D. Land
3. Which refers to the willingness and ability of a person to relocate from one area to another for
employment process?
A. Geographical mobility
B. Occupational mobility
C. Regional mobility
D. Incentives to work
4. Which of the following is incorrect statement for illustrating the above production possibility curve?
A. X represents produces more capital goods than consumer goods
B. Y represents produces more consumer goods than capital goods
C. X and Y are solutions to reduce the opportunity cost incurred on their decision made
D. Y allows the firms to generate more revenue as compared to X
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5. The graph shows the market for bicycle.
Which of the following might have caused a change in demand from D1 to D2?
A. An imposition of sales tax
B. New rules and regulation imposed on car owners
C. An advertising campaign about motor vehicles
D. A “being healthy” policy promoted by the government
6. Alice bought a new bicycle for $350 but has never used it. The second-hand value of the bicycle
is $250. What is the opportunity cost to Alice of keeping the bicycle?
A. $0
B. $100
C. $250
D. $350
7. What do most economies strive to increase?
A. Consumer goods
B. Productive capacity
C. Opportunity cost
D. Unemployment rate
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8. The diagram shows a shift in supply curve for petroleum in China from S1 to S2.
What is the most likely cause of this shift in the supply curve?
A. An imposition of tax on excavating petroleum in China
B. An increase in the price of coals in China
C. A new subsidy given to Chinese oil and gas factories
D. A new technology been introduced to excavate petroleum efficiently in China
9. The diagram shows the choices for an individual between leisure and earnings. He currently earns
$25 a day.
What is the opportunity cost for the person if he accepts more work and earns $75 a day?
A. $25
B. $50
C. 6 hours of leisure a day
D. 12 hours of leisure a day
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10. What is an example of market failure?
A. A growth of competition
B. A surplus of production in the short term
C. Social equality across the nation
D. A spread of pollution
11. 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
12. The diagram shows a market for rice that is in equilibrium.
Which area represents the total revenue for rice farmers?
A. OTXY
B. OVXY
C. OVXZ
D. OWXY
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13. A product has a price elasticity of demand that is greater than one. What will happen to total
revenue if the price of the product is reduced by 3%?
A. It will fall by more than 3%.
B. It will fall to zero.
C. It will be unchanged.
D. It will rise.
14. Why are some assembly workers poorly paid?
A. Because their work is exhausting
B. Because their work is repetitive
C. Because their work is unskilled
D. Because they work long hours
15. The table below shows how three people spend their income.
Put the three people in the most likely order of income from the lowest to the highest income.
A. X, Y, Z
B. X, Z, Y
C. Y, Z, X
D. Z, Y, X
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16. The table shows the change in income for selected occupations between 1995 and 2015.
What can be concluded from the table?
A. Car assembly workers and builders earned the same in 2015.
B. Everyone was better off in 2015 than 1995.
C. Nurses earned less than teachers in 2015.
D. Secondary sector workers received the highest percentage increase.
17. The diagram shows a production possibility curve for a country. As a result of an increase in
demand for manufactured goods it moves from a situation of unemployment to full employment.
How would this be represented on this diagram?
A. By a movement from E to G
B. By a movement from G to H
C. By a movement from F to E
D. By a movement from F to G
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18. Study the demand and supply schedule below and answer the questions that follow.
Price ($)
30
35
40
45
50
55
Quantity Demanded
(million units per week)
80
65
50
45
30
15
Quantity Supplied
(million units per week)
10
30
50
70
90
110
If the average price is $45 over a four-week period of trading, how much excess will suppliers
accumulate?
A. 100 million units
B. 120 million units
C. 140 million units
D. 160 million units
19. A large electrical store sells microwave ovens. When it cuts the price of its microwave ovens from
$100 to $80, demand for them expanded from 100 to 140 per week. What is the price elasticity of
demand for microwave ovens?
A. Zero
B. Less than 1
C. Unitary
D. Greater than 1
20. Sales of cigarettes and vapes are on the rise in Country A, while the government is planning a
suitable intervention to curb the issue as it will affect the health of citizens, especially the youth
and children. Which of the following is not a government intervention for reducing the sales of
cigarettes and vapes in Country A?
A. Direct provision of cigarettes and vapes to the citizens.
B. Education on the danger of cigarettes and vapes.
C. Setting new rules and regulations on buying cigarettes and vapes.
D. Indirect taxation on the cigarettes and vapes companies.
THE END