This question paper consists of 12 printed pages.
SP (NF/JB) S26243/2
© CIE 2002
CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Subsidiary Level
and Advanced Level
PAPER 1 Multiple Choice (Core)
OCTOBER/NOVEMBER SESSION 2002
Multiple Choice answer sheet
Soft clean eraser
Soft pencil (type B or HB is recommended)
INSTRUCTIONS TO CANDIDATES
Do not open this booklet until you are told to do so.
Write your name, Centre number and candidate number on the answer sheet in the spaces provided
unless this has already been done for you.
There are thirty questions in 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 very carefully the instructions on the answer sheet.
INFORMATION FOR CANDIDATES
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.
The diagram shows an economy’s production possibility curve.
Why does the curve slope downwards?
A Agriculture and industry are subject to decreasing returns to scale.
B Agriculture and industry are subject to increasing returns to scale.
C Resources are shared equally between industrial and agricultural production.
D Total resources available to the economy are limited.
2 Which of the following statements about trade unions is normative?
A Since trade unions exist to safeguard the interests of their members, they deserve the legal
protection of the state.
In countries where trade unions are strong, income distribution is more equal.
C Uneven trade union membership has resulted in a widening of the wage gap between
In industries where trade unions are powerful, technical progress tends to be much slower.
3 Given a rate of interest of 10% per year, what is the opportunity cost to an individual of s