Economics 9708/12 May June 2011 | Cambridge AS Level Past Papers With Mark Scheme

The user can download the PDF file for detailed review. Key questions summarized:

1. Analysis of factors of production and distinctions in capital usage compared to labor and land in economic models.
2. Examination of demand elasticity concepts, including price and cross elasticity, and their application in transportation and complementary goods.
3. Exploration of externalities in market equilibrium, focusing on external costs, social benefits, and government interventions like maximum price controls.
4. Evaluation of cost-benefit analysis for public goods, emphasizing differences in valuations and inclusion of externalities in decision-making.
5. Discussion of exchange rate adjustments and their implications for balance of payments, inflation, and international trade dynamics.
6. Examination of comparative advantage in trade and its impact on specialization and trade patterns between economies.