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 12 printed pages.
1 What is the opportunity cost to a fully employed economy of increasing capital investment?
A a fall in consumption
B a fall in income
C a rise in saving
D a rise in the rate of interest
The diagram shows a production possibility curve for an economy which produces only two
goods, X and Y.
The economy produces 400 of good Y and produces on its production possibility curve.
Which quantity of good X is given up?
3 Which group may be disadvantaged by the introduction of division of labour?
A consumers who prefer standardised goods
B companies where the production process has many sub-divisions
the government, if the pr