This document consists of 12 printed pages.
© UCLES 2007
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 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 2007
In an economy, no one can be made better off without making someone else worse off.
What does not necessarily follow from this?
A The conditions for allocative efficiency have been met.
B The conditions for productive efficiency have been met.
C The distribution of income is socially acceptable.
D The economy is operating at a point on its production possibility frontier.
A consumer seeks to maximise their utility. Up to what point should they continue to consume
A until the marginal utility from each good is the same
B until the marginal utility per dollar from each good is the same
C until the marginal utility from each good reaches a maximum
D until the marginal utility from each good is zero
In the diagram a consumer's budget line shifts from JK to JH.
What can definitely be c