1 霹雳怡保培南独立中学 SM POI LAM (SUWA) IPOH MID YEAR EXAMINATION 2024 ECONOMICS PAPER 1 DATE: 16 TH MAR 2024 (SATURDAY) TIME: 1020 - 1105 (45 MINUTES) NAME: _________________________ REG. NO: ___________ CLASS: S2 QIN / S2 YI READ THESE INSTRUCTIONS FIRST There are thirty questions on this paper. Answer all the 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 multiple-choice answer sheet. Write in soft pencil. Write your name, center number and candidate number on the multiple choice answer sheet in the spaces provided unless this has been done for you. Do not use correction fluid. Do not write on any bar codes. You may use a calculator. The total mark of this paper 30. Each correct answer will score one mark. Any rough working should be done on this question paper. DO NOT TURN OVER THIS PAGE UNTIL YOU ARE TOLD TO DO SO This paper consists of 10 printed pages Prepared by: Checked by: ….…………………. ….………………… ( MR.ANBARASAN ) ( MR.MOGANRAJ )
2 OBJECTIVE (30 Marks) 1 An unemployed worker accepts a job. Which of the following is the opportunity cost of this decision? A the cost of travel to work B the income from the new job C the leisure time lost D the training in the new job 2 A hospital cannot treat all the people that need treatment. This is an example of A excess supply. B limited wants. C scarcity. D unlimited resources 3 Economic growth in Russia and China used to be led by the public sector. Now it results more from activities in the private sector. However, both sectors are important. Which term describes the current system in Russia and China? A market B mixed C planned D subsistence 4 The table shows how employment in five industries changed in a country between 1985 and 2000. According to the table, which type of employment has increased? A primary B secondary C tertiary D total
3 5 What is necessary for a company to be classified as a multi-national? A It diversifies its range of products. B It exports most of its output. C It increases its scale of production. D It produces some of its output in different countries. 6 Which advantage is most likely to enable a small retailer to compete with larger stores? A a convenient location B a wide range of products C internal economies of scale D national advertising 7 In 2001 some countries, including India and Pakistan, criticised the European Union for continuing to protect European farmers with a subsidy while expecting poorer African countries not to restrict trade. Identify the concepts that are not involved in this situation. A developing and developed economies B free trade and protection C market prices and official intervention D multi-nationals and public corporations 8 A commercial bank is appointed to act as a country’s central bank. What new function would it now have? A controlling monetary policy B dealing in foreign exchange C ensuring security for loans D holding liquid assets 9 Which trade union action is most likely to have harmful effects on the productivity of a firm? A acceptance of new technology B agreement to a bonus system C opposition to planned redundancies D participation in a profit-sharing scheme
4 10 The diagram shows the demand for chocolate. What could cause the movement from point X to point Y? A a change in tastes B a fall in the price of chocolate C an increase in income D a successful advertising campaign for chocolate 11 The diagram shows the demand for and supply of a firm's product. The original equilibrium is at X. The firm pays for a successful advertising campaign. What is the new equilibrium?
5 12 The charts show the number of railway passenger journeys made and the miles of route open. What can be concluded from the charts? A The overall trend in passenger journeys between 1990 and 1994 was upwards. B The routes had more people travelling on them in 1994 than in 1992. C The revenue of the railway decreased between 1990 and 1994. D There were more trains running in 1994 than in 1992. 13 Which method of advertising would be the most cost-effective way of selling economics textbooks to schools? A commercial television B daily newspapers C direct mail D local radio stations
6 14 A supply curve shows the relationship between the quantity supplied and A company profits. B the demand for the product. C the output of the product. D the price of the product. 15 What is likely to increase the supply of fish brought to market? A a decrease in the number of fishing vessels operating B the imposition of a quota on the import of fish C the imposition of a sales tax on fish D a decrease in the cost of building fishing vessels 16 The graph shows the market for unskilled workers in a city. The original equilibrium is at X. What would be the new equilibrium if there was a migration of workers to the city?
7 17 The table shows how three people spend their income. Place the three people in the most likely order of income, from highest income to lowest income. A X, Y, Z B Y, Z, X C Z, X, Y D Z, Y, X 18 The table shows the weekly values of certain items for the average person in each group. Which group saves the most on average? 19 ‘Between 1988 and 1998 the real income of the poorest 5 % of the world’s people fell by almost 25 %, while the real income of the richest 5 % increased by 12 %.’ What does this mean? A Rich and poor people were equally affected. B The poor lost 25 % of their money. C The poor lost about twice as much money as the rich gained. D The poor were relatively worse off in 1998 than 1988. 20 Which activity can a small firm carry out more easily than a large firm? A adapting to changing fashions B buying in bulk C raising finance D undertaking expensive research
8 21 A firm is producing an output which enables it to make more than normal profit. What must be true at that output? A Average revenue must equal average cost. B Average revenue must be greater than total revenue. C Total revenue must be greater than total cost. D Variable cost must equal price. 22 The table shows how a firm's total cost rises with output. What is the average fixed cost of producing 8000 units? A $4 B $5 C $32 000 D $40 000 23 The price of a firm’s product is $10. It sells 2000 units. What is the firm’s total revenue (TR) and average revenue (AR)? 24 What would improve a firm's profits in the short run? A government controls on its prices B grants for the purchase of new machines C an increase in the wages paid to its workers D rising costs of raw materials
9 25 What is likely to result in the creation of a large business rather than a small business? A expensive technology that reduces the average cost of producing standardised products B higher incomes that allow consumers to be more selective in purchases C unemployment that causes people to set up their own companies D widely scattered markets that cause high transport costs 26 Which of the following is likely to be a disadvantage of economic growth? A Government tax revenue falls. B Resources are depleted. C The level of unemployment rises. D The standard of living of the population falls. 27 The government of a country used fiscal policy to achieve price stability. What is another way of saying this? A The government increased taxes to achieve low inflation. B The government reduced the money supply to achieve low inflation. C The government used interest rates to achieve economic growth. D The government used restrictions on banks to achieve stable exchange rates. 28 Which is a description of indirect taxes? A They are easy to avoid and deter effort. B They are levied on income and cause inflation. C They are levied on spending and are regressive. D They are progressive and discourage consumption. 29 In a country, income tax is charged at $50 on an income of $500. Compared with this, which of the following would indicate that the income tax scale was progressive? A $150 tax on $2000 income B $300 tax on $3000 income C $450 tax on $4000 income D $480 tax on $5000 income
10 30 Which of the following is an example of cyclical unemployment? A An airline cuts jobs in a world recession. B Cleaners lose their jobs as more machines are used. C Fishermen sell their boats owing to a reduction in fish stocks. D Hotels employ fewer people in the rainy period.
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