UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
Paper 1 Multiple Choice (Core)
Additional Materials: Multiple Choice Answer Sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
READ THESE INSTRUCTIONS FIRST
Write in soft pencil.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Write your name, Centre number and candidate number on the Answer Sheet in the spaces provided unless
this has been done for you.
There are thirty questions on this paper. Answer all questions. For each question there are four possible
answers A, B, C and D.
Choose the one you consider correct and record your choice in soft pencil on the separate Answer Sheet.
Read the instructions on the Answer Sheet very carefully.
Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
Any rough working should be done in this booklet.
This document consists of 12 printed pages.
© UCLES 2006
A consumer allocates his expenditure over time.
What would cause an increase in the opportunity cost of current consumption to the consumer?
A a decrease in his current income
B a decrease in interest rates
C an increase in his current income
D an increase in interest rates
In the diagram the original production possibility curve is LM.
What might cause the curve to shift to NP?
B unemployment of resources
the depletion of natural resources
D a reallocation of resources
A government proposes to introduce a road congestion charge which would require private
motorists to pay a toll for road use.
Which statement relating to the proposal