Economics 9708/03 May June 2008 | Cambridge AS Level Past Papers With Mark Scheme

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1. Economic problem: scarcity, opportunity costs, and shifts in production possibility curves.

2. Price elasticity effects on demand and supply, focusing on agricultural goods and consumer markets.

3. Government interventions, including subsidies, tariffs, and price controls, and their market impact.

4. International trade benefits through comparative advantage, with examples like Canada-EU trade agreements.

5. Exchange rate fluctuations, their effects on trade balances, and the dynamics of currency appreciation and depreciation.

6. Government responses to market failures, including fiscal measures, cost-benefit analysis, and provision of public goods.