Oct/Nov 2007

Suppose a country has a surplus on its current account. Explain how this could affect its exchange rate.

6.3

Explain how an equilibrium price for a product is determined in the market and how it can change.

Income elasticity of demand

Explain how resources are allocated within a market economy.

Resource allocation in different economic systems

Explain, using examples, why labour productivity may differ from one country to another.

Trade unions

What evidence suggests that The Gambia is a developing country?

Trade unions

Explain how utility theory suggests that consumers divide their spending across different products as prices change.

Indifference curves and budget lines

Explain how a rise in expensive investment by a company may lead to lower costs.

7.5

Explain why projects such as road building are often undertaken by the government, rather than by the private sector.

Government intervention in markets

Explain what data could be used for this assessment and discuss how useful it is likely to be.

National income statistics

Explain why a country might experience rapid economic growth.

Unemployment

Analyse the reasons the aims of government policy may clash with one another and discuss which of the aims should be given priority.

Government macroeconomic policy objectives