Economics 9708/23 May June 2016 | Cambridge AS Level Past Papers With Mark Scheme

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- Impact of China’s trade surplus and reduced imports on Australia’s trade balance, terms of trade, and balance of payments.
- Effects of changes in China’s exchange rate on its economy, identifying winners and losers domestically.
- Comparison of solutions for Australia’s balance of payments issues: lower interest rates in China versus a rise in China’s exchange rate.
- Elasticity concepts distinguishing normal and inferior goods, as well as substitutes and complements, for policymaking and business strategies.
- Analysis of cost-push and demand-pull inflation, including domestic and external consequences, and their severity for an economy.
- Benefits of specialization and international trade using production possibility diagrams, and the justification of protectionism despite trade benefits.