Economics 9708/32 March 2016 | Cambridge AS Level Past Papers With Mark Scheme

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1. Define market failure and provide examples such as difficulties in allocating property rights and externalities.

2. Discuss the importance of economic efficiency in ensuring resource optimization without waste.

3. Evaluate the impact of taxing firms to account for external costs on resource allocation and production levels.

4. Explain the Pareto criterion for allocative efficiency and its implications for welfare economics.

5. Analyze government policies addressing income inequality, such as minimum wages, tax structures, and welfare programs.

6. Discuss macroeconomic tools, including fiscal and monetary policies, for balancing economic growth with inflation control and external stability.