This question paper consists of 12 printed pages.
SP (AT/JB) S25749/2
© CIE 2002
CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Level
PAPER 3 Multiple Choice (Extension)
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.
1 New technology makes it possible to produce more of a good at every given price.
What effect will this have on equilibrium price and output in a competitive industry?
The table shows the marginal utility that a consumer obtains from consuming successive units of
The price of good X is $4.
What additional information is needed to determine the quantity of X that the consumer will
the consumer’s income elasticity of demand for good X
the consumer’s price elasticity of demand for good X
the marginal utility of money to the consumer
the marginal utility that the consumer obtains from substitute goods
mu (units of utility)
In the diagram, KN is a budget line showing the different combinations of two normal goods, X and
Y, that a consumer is able to purchase. A consumer