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.
The steel required for the construction of a new car-assembly plant in a fully employed economy
is obtained by increasing the output of the domestic steel industry.
What is the opportunity cost of producing the steel?
the alternative benefits forgone by diverting additional resources to steel manufacture
the alternative benefits forgone by increasing the capacity of the car industry
the alternative benefits that would have been obtained by putting the steel to other uses
zero, since there is no reduction in the steel supplied to other steel users
The diagram shows shifts in an economy’s production possibility curve.
Which change could have come about as a result of an improvement in technology?
A S to Y
B T to S
C W to T
D W to Y
3 What is meant by the ceteris paribus assumption?
A an assumption that is not supported by the facts
B an assumption that consumers act rationally
C an assumption that two factors are