Economics 9708/13 Oct Nov 2016 | Cambridge AS Level Past Papers With Mark Scheme

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1. Fundamental economic problems emphasizing scarcity, choice, and opportunity cost, illustrated with production possibility curve applications.

2. Price elasticity effects on supply, demand, and cross-elasticity for substitutes and complements, including implications for consumer and producer behavior.

3. Government interventions:
- Maximum pricing for staple goods.
- Subsidy effects based on price elasticity.
- Tax reforms to enhance equity.

4. Comparative advantage analysis using output data for specialization and total output calculations.

5. Monetary and trade policies:
- Exchange rate management through currency interventions.
- Expansionary measures like interest rate reductions to stimulate demand.

6. Policy recommendations for inflation control in full-employment economies through reduced government spending and increased indirect taxes.