Gaytri Talwar

CIE IGCSE Topical Past Paper 2 1.4 Production possibility curve (PPC) diagrams      0455/22/O/N/24 In 2021, the production point on the UK’s production possibility curve (PPC) changed. Average wages increased. The average annual wage of a waiter was $23,580 while that of a chief executive of a large commercial bank was $1,617,000. A rise in wages enables people to eat in restaurants more often. Some of the food sold in UK restaurants is imported. In 2021, the UK government signed free trade agreements, removing import restrictions, with a number of countries. (a) Identify two places where a production point could be located on a PPC diagram. [2] (b) Explain two reasons why someone may switch from eating in one restaurant to eating in another restaurant. [4] 0455/22/O/N/23  In 2020, Singapore experienced a decrease in both its population size and its labour force. 2020 wa...

CIE IGCSE Topical Past Paper 2 1.3 Opportunity cost      0455/22/M/J/23 In 2019, China’s economic growth rate was 6.1% and Chinese households increased their spending. More Chinese people attended sports events and the earnings of top sportspeople increased. China exported more despite a rise in tariffs on some of its products. For example, the US imposed higher tariffs on the imports of Chinese tea and coffee. a) Identify the opportunity cost of households spending their income and the opportunity cost of Chinese firms exporting goods and services. [2] 0455/23/O/N/22  Washington State is the state which grows the most apples in the US. In 2019, apple production increased in Washington State but the market was in disequilibrium. Apple farming is a labour intensive industry because apples are picked by hand. The market for apples in the US is competitive.  c) Explain opportun...

CIE IGCSE Topical Past Paper 2 1.2 The factors of production   0455/22/F/M/25  Estonia’s factor of production are employed in a range of industries including education. In 2022, the country experienced a shortage of teachers. The government increases teachers’ wages to attract workers from other industries. Two of Estonia’s other industries are building and clothing. Estonia’s clothing industry has firms of different sizes. Estonia’s firms were affected in 2022 by the government increasing the money supply. a) Define factor of production. [2]  0455/22/O/N/23  Botswana uses both capital goods and labour in its diamond mining industry. The country had an average economic growth rate of 3.8% between 2015 and 2019 compared to a global average of 2.8%. Over this period, the country experienced a low inflation rate and a move away from protectionism ...

CIE IGCSE Topical Past Paper 2 1.1 The nature of the economic problem     0455/22/M/J/24  South America is a large geographical area with millions of microeconomic decision-makers. During a recent pandemic, schools stayed closed for longer than anywhere else in the world. As a result, students received less education. The World Bank estimated that the average student would earn $24,000 less over their lifetime. Some students may earn only the minimum wage. In 2020, South America had an inflation rate of 6.3% and an economic growth rate of only 1.8%. a) Identify the difference between microeconomics and macroeconomics. [2] 0455/22/F/M/23 Serbia is the world’s second largest producer of raspberries, a product with elastic demand. Consumers experience the economic problem when buying raspberries. Few raspberry farm workers are members of trade unions. Membership pf trade unions i...

CIE IGCSE Topical Past Paper 2 4.5 Supply-side policy     0455/22/F/M/25  Finland is a high-income country that usually has a higher value of exports than imports. It has a strong commercial banking sector which has increased its lending in recent years. The country has an ageing population, with more than a quarter of its population aged over 65. In 2022, Finland’s Government had a budget deficit with government spending exceeding tax revenue. d) Discuss whether supply side policy measures will reduce a government’s budget deficit. [2]  0455/22/F/M/24  Since 2016, South Korea’s population has declined, due to a falling birth rate, and a high proportion of its population is now aged over 64. The South Korean government has used tax revenue to give cash incentives to couples to have more children. However, many parents have chosen to have fewer children and spend more on each child to ensure they get a good education....

CIE IGCSE Topical Past Paper 2 4.4 Monetary policy    0455/22/F/M/25  Estonia’s factor of production are employed in a range of industries including education. In 2022, the country experienced a shortage of teachers. The government increases teachers’ wages to attract workers from other industries. Two of Estonia’s other industries are building and clothing. Estonia’s clothing industry has firms of different sizes. Estonia’s firms were affected in 2022 by the government increasing the money supply. d) Discuss whether or not an increase in the money supply will benefit an economy. [8]  0455/21/O/N/23  One reason why the price of houses in cities such as Hong Kong, London, and New York is very high, is the low price elasticity of supply of houses. Trade unions in some of these cities are calling for more affordable housing for workers. Governments are also trying to implement various microeconomic policy measures to redu...

CIE IGCSE Topical Past Paper 2 4.3 Fiscal policy   0455/21/O/N/24 Hawaii’s economy has grown due to tourism but the growth in this sector has also increased inflation in this US island state. It is estimated that 9% of Hawaii’s population were living in poverty in 2022. Many families struggled to save. Young workers were able to leave due to high levels of labour mobility between US states. However, Hawaii is now facing an ageing population including many more retired people. d) Discuss whether or not fiscal policy is effective in reducing poverty. [8]   0455/22/F/M/24  Some firms in Monaco have experienced external growth. Firms in Monaco pay high wages. Workers in Monaco benefit from fiscal policy which contributes to high employment. Their government does impose VAT on food, including fruit. Some economists have suggested that instead of taxing fruit, governments should provide free fruit to consumers.  c) Analyse how fiscal policy ca...