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 10 printed pages and 2 blank pages.
In a market economy, what is the basis for determining the allocation of factors of production?
the market share of companies
the needs of the country
the pattern of consumers’ spending
the wealth of entrepreneurs
The diagram shows two production possibility curves (EF and GH), before and after technological
progress has taken place.
After technological progress has taken place, what is the opportunity cost in capital goods of
producing OX consumer goods?
3 What is meant by ‘ceteris paribus’ in economic analysis?
A A normative approach is being adopted.
B The effect of a change of one vari