Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

(a)[4]

What does economic growth per capita in real terms mean?

(b)[4]

Explain the difference between a firm’s variable costs and fixed costs. Consider which would be changed as a result of the changes in steel prices in 2015.

(c)[4]

Why does the article describe the steel market as “a buyers’ market"?

(d)[8]

Explain what is meant by market failure. Discuss whether the information gives any evidence that the government should support the steel industry because market failure exists.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: a rise in the quantity of goods and services produced

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