Economics 9708/23 Oct Nov 2012 | Cambridge AS Level Past Papers With Mark Scheme

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

1. Comparison of petrol pricing policies in the US and China, focusing on market-determined versus government-set prices and their economic implications.
2. Examination of externalities generated by petrol consumption, including environmental and social costs, and the role of taxation in addressing these issues.
3. Analysis of price elasticity of demand (PED) for petrol, highlighting differences between short-run and long-run elasticities and their significance.
4. Discussion of the potential economic and social consequences of China’s price-setting policy for petrol during 2008–2009.
5. Evaluation of consumer surplus changes due to pricing dynamics and their representation using demand curves.
6. Debate on free trade's advantages and disadvantages, exploring its impact on terms of trade, market efficiency, and economic inequalities.