Economics 9708/02 Oct Nov 2003 | Cambridge AS Level Past Papers With Mark Scheme

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

1. Analysis of the world coffee market dynamics (1997–2000), focusing on price fluctuations caused by supply-demand imbalances and producer retention schemes.
2. Examination of the coffee retention scheme by Brazil and its impact on reducing surplus through export limitations and its operational challenges.
3. Evaluation of alternative measures like the ‘Fairtrade’ scheme to address low coffee prices, focusing on guaranteed pricing and direct purchases from growers.
4. Discussion of labor productivity, its influence on production possibility curves, and the economic benefits of improved efficiency.
5. Analysis of indirect taxes on markets, exploring their removal’s effect on pricing and production.
6. Examination of terms of trade changes and their impact on trade balances, including implications for export and import pricing.