Economics 9708/01 Oct Nov 2002 | Cambridge AS Level Past Papers With Mark Scheme

The user can download the PDF file for detailed review. Key questions summarized:

1. Explanation of production possibility curves and their downward slope due to resource scarcity and opportunity cost.
2. Analysis of demand elasticity for normal and inferior goods, complemented by practical cases such as transportation or substitute products.
3. Exploration of externalities and their market impacts, including the role of taxation, subsidies, and market corrections.
4. Discussion of comparative advantage and trade benefits, focusing on specialization and exchange rates in international trade.
5. Evaluation of inflation trends and their effects on cost of living, purchasing power parity, and currency valuation.
6. Examination of exchange rate systems, including managed float, purchasing power parity, and implications of interest rate changes.