Scribd
Upload
646 views3 pages

TEST 1 - Markscheme

France produces goods inside its production possibility curve and exports perfume, soap, and other products. Technological changes impact what is produced and purchased. The government plans to expand internet access to all households. China's central bank raised interest rates to reduce borrowing and money supply growth, but was concerned this could lower economic growth. The interest rate increase likely increased work for skilled commercial bank workers.

Uploaded by

Dhrisha Gada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
646 views3 pages

TEST 1 - Markscheme

France produces goods inside its production possibility curve and exports perfume, soap, and other products. Technological changes impact what is produced and purchased. The government plans to expand internet access to all households. China's central bank raised interest rates to reduce borrowing and money supply growth, but was concerned this could lower economic growth. The interest rate increase likely increased work for skilled commercial bank workers.

Uploaded by

Dhrisha Gada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

1. In 2019, France produced inside its production possibility curve (PPC). France exports a wide range of its products.

It is the
world’s top exporter of luxury perfume and the 7th largest exporter of soap. Changes in technology affect the products people
produce and buy. The French government plans to upgrade its infrastructure for all households to have internet access.

(a) Define a production possibility curve. [2]

(b) Explain why demand for soap is more price-inelastic than demand for a luxury brand of perfume. [4]

(c) Analyse, using a demand and supply diagram, how an increase in income will affect the market for a luxury brand of
perfume. [6]

(d) Discuss whether or not the public sector should be responsible for the supply of all internet services. [8]
2. In February 2017, China’s central bank raised the rate of interest. It wanted to reduce borrowing and the growth of the money
supply, but it was worried that the rise in the interest rate might reduce the country’s economic growth rate. The change in
interest rate is likely to have increased the workload of skilled commercial bank workers.

(a) Identify two functions of money. [2]

(b) Explain two reasons why a central bank may want to reduce borrowing. [4]

(c) Analyse why skilled workers are usually paid more than unskilled workers. [6]

(d) Discuss whether or not a rise in the rate of interest will reduce economic growth. [8]

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy