Economics > AQA Question Papers > A-level ECONOMICS Paper 3 Economic Principles and Issues. EXAM PREDICTIONS. RATED A+ (All)

A-level ECONOMICS Paper 3 Economic Principles and Issues. EXAM PREDICTIONS. RATED A+

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Figure 1 shows the marginal private benefit and marginal social benefit (MPB and MSB) box curves and the marginal private cost and marginal social cost (MPC and MSC) curves in the market for a good.... Figure 1 The diagram represents a good with A negative externalities in production and consumption. B negative externalities in production and positive externalities in consumption. C positive externalities in production and consumption. D positive externalities in production and negative externalities in consumption. [1 mark] Turn over for the next question4 *04* IB/M/Jun21/7136/3 Do not write outside the 0 4 Which one of the following changes in macroeconomic performance is most likely to box involve a trade-off, at least in the short-run, between the objectives of government macroeconomic policy? A Economic growth increases and the deficit on the balance of payments on current account is eliminated B Inflation declines to match its target rate and the government’s budget position moves into balance C The distribution of income becomes more equal as economic growth increases D The government’s budget deficit increases as the rate of unemployment is reduced [1 mark [Show More]

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