Oct/Nov 2004

Suggest two steps that a country might take to make its economy more open to freer international trade.

International trade and free trade

Explain how inflation influences the functions of money.

Balance of payments

Explain how elastic, inelastic and fixed supply differ.

Price elasticity of supply

Explain the meaning of public good and private good.

7.4

What evidence in the article shows that BA’s costs are higher than those of its competitors?

Price elasticity of demand

Discuss whether economic efficiency as described in text books can realistically be achieved in practice.

Behavioural economics

Explain which factors may determine the level of investment in an economy.

Unemployment

Explain the economic factors that may have prompted the company to choose this option.

7.7

Describe the other main aims of a government’s macro-economic policy.

Government macroeconomic policy objectives

What features are typical of a developing economy?

11.4

Think about who is likely to gain when a market is made up of only a few large companies.

7.6