Economics 9708/31 May June 2022 | Cambridge AS Level Past Papers With Mark Scheme

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1. Pareto optimality conditions, highlighting the inefficiency of reallocation without mutual benefit.

2. Production possibility curve analysis for efficiency and opportunity cost insights.

3. Market dynamics:
- Inferior goods' income and substitution effects.
- Collusion features in imperfect competition.
- Monopolistic competition and profit equilibrium.

4. Policy tools for market intervention, including pollution permits, nudges, and subsidies for specific industries.

5. Labor market issues:
- Wage trends and labor productivity impacts.
- Addressing cyclical and structural unemployment through targeted policies.

6. Macroeconomic principles:
- Keynesian liquidity preference model for monetary policy.
- Output gaps and inflation risks.
- Taxation's effect on revenue (Laffer curve).

7. Investment, consumption trends, and their relationship with MPC/APC under various income levels.