May/June 2008

Identify from Fig.1 the month with the largest monthly appreciation of the Kwacha.

6.4

Explain the three economic questions that all economies face because of the basic economic problem.

Scarcity, choice and opportunity cost

Explain what determines the size of a country’s labour force.

Long-run costs and economies of scale

Explain what is meant by a current account deficit

6.5

How might the North Sea oil industry influence the UK's national income?

National income statistics

Discuss whether this pricing approach can be justified by theory.

Law of diminishing returns

Is the presence of a trade union likely to be the chief factor influencing the supply of labour?

Long-run costs and economies of scale

Discuss whether this argument has any validity.

7.6

Explain what is meant by economic development in this context.

Trade unions

There is concern that if the government raises taxes, national income will decrease. Explain whether this must always be the case.

Fiscal policy

For what purposes do people demand money in an economy?

Oligopoly