Economics 9708/02 Oct Nov 2005 | Cambridge AS Level Past Papers With Mark Scheme

Download the attached file to view the complete content. Key questions extracted:

1. Comparison of customs unions and free trade areas in terms of similarities and differences.
2. Analysis of exchange rate movements for Mexico and Argentina between 1997–1999 and their economic implications.
3. Impact of inflation on exchange rates and its broader economic consequences for Mexico and Argentina.
4. Evaluation of whether exchange rate devaluation consistently improves the balance of trade.
5. Effects of externalities on resource allocation and the effectiveness of taxes and subsidies in addressing them.
6. Examination of free market equilibrium pricing mechanisms and the advantages of free international trade.