Exam Questions – Capital – HL - Long
2011 Q 3 (b) (i) State and explain the reasons why investment
is important for the Irish economy. (also 2002 Q 4)
1.
2.
3.
4.
(b) (ii) Describe the factors that currently influence the level
of investment in the Irish economy. ( also 2004 Q 4, 2001 Q 4, 1999 Q 3)
1.
2.
3.
4.
2010 Q 8 (c)
There has been a sharp increase in the rate of savings in
Ireland in the last year.
(i)
Discuss two factors currently influencing the rate
of savings in the Irish Economy.
(i)
Outline three economic effects which an increase in
the rate of savings may have on the Irish economy.
1.
2.
1.
2.
3.
2009 Q 4. Keynes’ concept of Liquidity Preference is based on
three reasons (motives 2006 Q 3, 2002 Q 4) why people desire
to hold wealth in money form.
(i) State and explain each of these reasons and outline one
main influence on each reason (2002 Q 4 (a)).
1.
Influence
2.
Influence
3.
Influence
(ii) Discuss the effect a fall in interest rates is generally
expected to have on each.
1.
2.
3.
2006 Q 3. (c) (ii) Explain with the aid of a diagram(s),
Keyne’s theory on the relationship between the holding of
money and the rate of interest.
2005 SQ 8 & 2002 SQ 4. Outline THREE key ideas, which
John Maynard Keynes contributed to economic thought.
1.
2.
3.
2000 Q 4 (c) Discuss the effects which a rise in interest rates
may have on the Irish economy.
1.
2.
3.
4.
5.
2006 Q 3. Distinguish between the following terms, using
relevant examples in each case.
(a) (i) Fixed Capital & Social Capital
(a) (ii) Savings & Investment
(a)(iii) Capital Widening & Capital Deepening
2002 Q 4. (a) Define Capital
2004 Q 4. (b) (i) Explain what is meant by the
Marginal Efficiency of Capital (MEC)
2004 Q 4. (b) (ii) Discuss FOUR factors, other than MEC,
which influence the level of investment by entrepreneurs.
1.
2.
3.
4.
2000 Q 4. (a) State & explain why the MEC may fall.
1. Rise in interest rates
2.Increase in the cost of capital goods
3.Decrease in the sellin price of the product being made
4.If additional capital goods are not used
1998 Q 5. Q 5 (c) Suggest some means by which the Irish
government might encourage an increased level of investment
in the Irish economy.
1.
2.
3.
4.
5.
Capital – Ordinary Level
2010 Q 7 (b)
2009 Q 7 (b) & (c)
2007 Q 4 (b) & (c)
2006 Q 3 (a)
2005 Q 4 (b) & (c)
2002 Q 4 (a) & (c)