Economics 9708/01 Oct Nov 2007 | Cambridge AS Level Past Papers With Mark Scheme

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1. Explain how economic growth, by raising income levels, is linked to increased happiness and well-being, as per the article.

2. Use a diagram to explain how an increase in indirect tax rates might reduce a consumer's total utility, showing the income and substitution effects.

3. Discuss the article's argument about increasing taxes on the wealthy to reduce income inequality, and whether this is a good policy.

4. Evaluate whether economic growth always leads to improved consumer welfare, taking into account factors like inflation, inequality, and environmental issues.

5. Explain how increased government investment could reduce supply-side constraints, leading to higher productivity and growth.

6. Discuss how factors such as income levels, exchange rates, and global economic conditions can affect visitor arrivals to Fiji.