Description
this is a timed assignment that should be solved all
20 multiple choice questions and 2 out of 4 essay questions
Explanation & Answer
Attached.
Economics
Section A
1
C
2
B
3
A
4
C
5
B
6
B
7
E
8
D
9
B
10
B
11
D
12
E
13
D
14
A
15
E
16
E
17
C
18
A
19
B
20
E
Section B
Question 1
a)
Price
do
d1
S0
P1
Pe
S0
d0
Qe Q1
d1
Quantity
Increase in taxes will make the cost of production to increase because of the increased cost of
inputs / factors of production. This will increase the price of the commodities thus causing the
supply curve to shift to the right from dodo to d1d1, the equilibrium point will end up risng.
b) Causes that may cause a rise in the equilibrium are negative effects on the supply of a product
which are
- High level of population
- Increase in inputs’ prices
- Favorable government policies
- Increase in the number of producers
- Favorable weather conditions
- Use of modern technology
4 (a) Increase in interest rates attracts foreigners in other countries to come and invest in the
assets of UK due to the expectation of high returns on t...
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