Economics 9708/04 May June 2006 | Cambridge AS Level Past Papers With Mark Scheme

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1. Economic Problem: Analysis of scarcity, opportunity costs, and shifts in production possibility curves, and their implications for resource allocation.

2. Price Elasticity: Examination of price elasticity of demand and supply, with a focus on its effects in agricultural and consumer goods markets.

3. Government Intervention: Discussion on the effects of subsidies, tariffs, and price controls in regulating market outcomes and equilibrium.

4. International Trade: The role of comparative advantage and free trade agreements, specifically between Canada and the EU.

5. Currency Fluctuations: The impact of exchange rate changes on trade balances, exports, and national economic performance.

6. Market Failures: Government responses to market inefficiencies through fiscal policies, cost-benefit analysis, and public goods provision.