This document consists of 11 printed pages and 1 blank page.
© UCLES 2008
UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Level
Paper 3 Multiple Choice (Supplement)
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.
© UCLES 2008
1 Which condition must be met for economic efficiency to be achieved?
A Marginal social costs are zero in the production of all goods.
B Marginal social costs equal marginal social benefits in the production of all goods.
C Marginal social benefits are at a maximum in the production of all goods.
D Marginal social costs are at a minimum in the production of all goods.
The diagram shows the levels of utility corresponding to different allocations of resources
between two people.
The initial allocation is Z.
Which reallocation of resources would definitely be more Pareto efficient?
person X’s utility
In the diagram a consumer’s budget line shifts from GH to JK.
Regardless of any other changes that might occur, what must be corre