1.1 The nature of the economic problem CIE IGCSE Topical Past Paper 2
- Get link
- X
- Other Apps
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 in Serbia has fallen to 20% of all workers by
2020. In that year, Serbia had more state pensioners than workers.
b) Explain how the economic problem results in consumers having to make a choices. [2]
0455/22/O/N/22
The
economic problem results in choices and opportunity cost. People have
to decide what job to do and where to live. In recent years Australia
has recruited teachers from a number of countries including Canada, the
UK and the US. Most of these teachers specialise in a single subject.
c) Explain the economic problem and why it is always likely to exist. [4]
0455/22/F/M/22
The
economic problem means that countries have to decide what to produce.
Ghana uses much of its agricultural land to grow cocoa. Cocoa is sold to
chocolate producers. The world’s main chocolate producer in 2019 was a
US firm with a 14% share of the global market. That firm was the largest
seller of chocolate in the US and, if it merges, may become a
monopoly.
a) Define the economic problem. [2]
0455/22/M/J/21
Nearly
one million people in Cairo, the capital city of Egypt, live in
crowded, unhealthy housing. One reason why people lack basic
necessities, including adequate housing, is unemployment. In 2019,
nearly 10% of Cairo’s workers did not have a job. Other citizens of
Cairo live in luxury, in houses costing more than $1 million. Many of
Cairo’s rich adults grew up in rich families.
a) Identify two basic necessities, other than housing. [2]
0455/21/M/J/20
There
is a smaller proportion of large firms in Africa than in Asia. The two
African countries with the largest firms are Nigeria and South Africa.
These two countries’ firms have more capital goods than most other
African countries’ firms. Firms in South Africa produce a range of
products including gold and petrochemicals. In recent years, a number of
African firms have developed into multinational companies (MNCs),
producing mainly in other African countries.
a) Define a capital good. [2]
0455/22/F/M/19
The
economic problem results in people having to make choices. In Bulgaria,
in recent years, people have changed how much they spend. The Bulgarian
government is encouraging people to spend more. It is trying to ensure
that deflation does not return and that the country will continue to
experience an increase in output.
c) Explain how the economic problem results in people having to make choices. [4]
0455/22/M/J/18
Farms
in the USA are getting larger. One dairy farm in the state of Indiana
has over 38000 cows. Farms in the USA compete with farms in both
developed and developing countries. The value of the farms’ exports of
milk appears in the trade in goods section of the current account of the
USA’s balance of payments.
a) Identify two examples of capital goods that may be used by a farm. [2]
0455/22/F/M/18
It
is forecast that by 2022 India will overtake China as the world’s most
highly populated country. China’s birth rate is lower than India’s and
China has a higher proportion of its population aged over 65. By 2050,
it is estimated that 500 million Chinese people and 330 million Indian
people will be over 65. Changes in population size and age structure
affect the quantity and quality of a country’s resources.
a) Define resources. [2]
c) Explain two reasons why the quality of a country’s resources may increase. [4]
- Get link
- X
- Other Apps
