CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Level
Paper 3 Multiple Choice (Extension)
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.
In an economy, no one can be made better off without making someone else worse off.
What does not necessarily follow from this?
A The distribution of income is socially acceptable.
B The conditions for allocative efficiency have been met.
C The economy is operating at a point on its production possibility frontier.
D The conditions for productive efficiency have been met.
2 A household makes the following purchases of fruit.
The household derives twice as much utility from the fifth kg of bananas as from the tenth kg of
What should the household do to maximise utility from the purchase of these fruits?
The diagrams show a change in a consumer's budget line from an initial position of LL1 to LL2.
Which diagram shows the effect of a fall in the price of X, money in