Economics 9708/01 May June 2004 | Cambridge AS Level Past Papers With Mark Scheme

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

1. Examination of opportunity costs in resource allocation, using production possibility curves to illustrate trade-offs between capital investment and consumption.
2. Analysis of demand elasticity, including price and cross-elasticity effects, with real-world applications in transportation and complementary goods markets.
3. Exploration of externalities and their impacts on market equilibrium, focusing on subsidies, social costs, and government interventions.
4. Evaluation of comparative advantage in international trade, using examples like trade between Singapore and New Zealand under free trade agreements.
5. Discussion of inflation impacts on money value and real value, with emphasis on index-linked assets and economic stability.
6. Assessment of exchange rate adjustments and their implications for trade balances, international investments, and currency valuation.