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 11 printed pages and 1 blank page.
© UCLES 2006
1 Why are there no markets for free goods?
A Consumers’ valuation of free goods is the same at all levels of demand.
B Free goods are non-excludable.
C The demand for free goods is infinite.
D The supply of free goods is sufficient to satisfy all demand at zero price.
2 What is present in a mixed economy but not in a planned economy?
C government borrowing
D private production
In economics a statement is positive if
it assumes current economic conditions remain unchanged.
it concerns the factual outcomes of an economic action.
it examines the desirability of government economic policy.
it is based upon the opinion of an economi