Economics 9708/01 May June 2007 | Cambridge AS Level Past Papers With Mark Scheme

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1. Economic Problem: Understanding scarcity, opportunity costs, and production possibility curve shifts in resource allocation.

2. Price Elasticity: Analyzing its effects on demand and supply, particularly in agricultural and consumer goods sectors.

3. Government Intervention: The role of subsidies, tariffs, and price controls in influencing market behavior and equilibrium.

4. International Trade: Comparative advantage theory and the benefits of free trade agreements, focusing on Canada and the EU.

5. Currency Fluctuations: Exploring how exchange rate movements impact trade balances, exports, and national income.

6. Market Failures: Government strategies for addressing economic inefficiencies through fiscal policies, cost-benefit analysis, and public goods provision.