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Microeconomics only
1.5 (old syllabus specimen)
a. Explain the main features of an oligopolistic market. [10]
b. Discuss whether oligopolies work in favor of, or against the interest of consumers [15]
1.4 May 98
a. Explain what economists mean by externalities or spillover effects. [10]
b. Discus how an understanding of externalities (spillover effects) assists economists in analyzing
environmental problems. [15]
1.5 Nov 98
a. Explain the term natural monopolies and why are they considered a danger if left unregulated.
[10]
b. (not in 2013 syllabus)
1.2. May 99
a. Carefully explain what is it that price, income and cross elasticities of demand are meant to
measure. [10]
b. Discuss the practical importance of the concept of price elasticity of demand for (i) business
organizations, and (ii) the government. [15]
1.4 Nov 99
a. (not in 2013 syllabus)
b. Discuss solutions an economist might suggest to the problem of overfishing. [15]
1.1 May 00
a. State the law of demand and distinguish between movements along the demand curve and shifts
of the demand curve. [10]
b. Explain, with the help of diagrams, the effect of an increase in the price of petrol is likely to have
on
(i) The market for cars.
(ii) The market for coal. [10]
1.5 May 00
a. Monopoly price is higher and output smaller than is socially ideal. The public is a victim.
[Galbraith, 1974]. Explain the economic reasoning behind the statement that monopoly price is
higher and output smaller than is socially ideal. [10]
b. To what extent do you agree that the public is always the victim of monopoly? [15]
1.4 May 01
a. Using suitable diagrams, explain why there is likely to be an absence of long run economic
profits in perfect competition. [10]
b. To what extent might consumers benefit from increased competition between firms? [15]
1.5 Nov 01
a. How does a monopoly maintain supernormal (or abnormal) profit in the long run? [10]
b. Discuss whether monopoly is always undesirable. [15]
1.5 May 02
a. (not in syllabus)
b. Discuss and evaluate the proposition that perfect competition is a more efficient market
structure than monopoly. [15]
1.4 Nov 02
a. Explain why pollution is an example of a market failure. [10]
b. To what extent can the market system protect the environment? [15]
1.5 May 03
a. Explain how monopoly power might arise. [10]
b. Evaluate the extent to which governments should seek to control the growth of monopoly
power. [15]
1.4 Nov 03
a. National policies and international agreements must be implemented in order to reduce global
environmental problems. Using the concepts of market failure, explain the statement above
from an economists point of view. [10]
b. With references to both national policies and international agreements, evaluate three
solutions that could be recommended by economists. [15]
1.5 May 05
a. Explain how profit is determined in perfect competition. [10]
b. Whatever the type of market structure, profit maximization will always be the only goal of
firms. Discuss. [15]
1.5 Nov 05
a. Explain the differences between monopolistic competition and oligopoly as market structures
[10]
b. Discuss the differences between a collusive and a non-collusive oligopoly. [15]
1.4 May 06
a. Carefully distinguish between merit goods, demerit goods and public goods. [10]
b. Evaluate the view that governments should always intervene in markets for such goods as
cigarettes and alcohol. [15]
1.5 Nov 06
a. Explain the necessary conditions for price discrimination to take place. [10]
b. Discuss the advantages and disadvantages of price discrimination for consumers and producers.
[15]
1.5 May 07
a. Explain how barriers to entry may affect market structure. [10]
b. Evaluate the view that monopoly is an undesirable type of market structure. [15]
1.5 Nov 07
a. Explain the difference between short run equilibrium and long run equilibrium in monopolistic
competition. [10]
b. Perfect competition is a more desirable market form than monopolistic competition. Discuss.
[15]
1.2 Nov 08
a. Explain the determinants of price elasticity of demand. [10]
b. (not in 2013 syllabus)
1.5 May 09
a. In the theory of the firm, a distinction is made between short run cost curves and long run cost
curves. Using appropriate cost curve diagrams, explain this distinction. [10]
b. Evaluate the view that greater economic efficiency will always be achieved in perfect competition
as compared to monopoly. [15]
1.5 Nov 09
a. Explain why a firm may practice price discrimination and the necessary conditions for it to take
place. [10]
b. Although a firm may pursue a range of goals, economists usually assume that profit
maximization is the main goal. Discuss this statement. [15]
1.4 Nov 10
a. Explain why negative externalities of production are an example of market failure [10]
b. Evaluate two policies that governments might implement to reduce negative externalities
associated with the environment. [15]
1.3 Nov 13
a. Using a price ceiling diagram, analyze the impact a maximum price may have on the market for
food. [10]
b. Discuss the policies a government might use to make food more affordable to low income groups.
[15]
1.5 Nov 15
a. Explain why a firm in monopolistic competition will make only normal profit in the long run.
[10]
b. Evaluate the view that monopolistic competition is a more efficient market structure than
monopoly. [15]
2.3 Nov 90
Unemployment can either be structural or cyclical. Explain how government intervention would
differ in each case. [10]
2.3 May 91
A reduction in unemployment is desirable, but it is certain to lead to other problems, such as
inflation or balance of payments difficulties. Discuss. [15]
2.3 May 92
Discuss the view that unemployment is a more serious economic problem that inflation. [15]
2.3 May 96
Explain the social costs of unemployment? In view of these costs, explain why some countries
give higher priority to tackling other problems such as inflation. [10]
2.6 Nov 96
A government introduces supply side policies in order to have a flexible work force. Discuss the
effectiveness of such policies. [15]
2.3 May 97
Explain how would a monetarists view of economic problems (such as inflation and
unemployment) and policies differ from that of a Keynesian. [10]
2.3 May 99
a. Briefly explain the various objectives of macroeconomic policy. [10]
b. Examine the view that the control of inflation should always be the most important objective of
governments. [15]
2.3 May 01
a. Explain how governments can use fiscal policy to redistribute income. [10]
b. Evaluate the advantages and disadvantages of policies aimed at reducing income inequalities.
[15]
2.3 Nov 01
What is wanted is not inflation (a rise in the general price level) or deflation (a fall in the
general price level) but price stability. Discuss. [15]
2.3 May 02
a. Explain the consequences of unemployment in an economy. [10]
b. Examine the policies that may be used to reduce unemployment. [15]
2.3 Nov 02
a. Explain the main macroeconomic objectives of government. [10]
b. Assume the government chooses to pursue one of these objectives. Evaluate the possible
consequences for the other objectives. [15]
2.3 May 03
Evaluate the view that the achievement of price stability should be the major objective of
government economic policy. [15]
2.3 Nov 03
a. With the help of diagrams distinguish between demand-pull and cost-push inflation. [10]
b. Examine policies which would be appropriate to deal with each of these two types of inflation.
[15]
2.3 May 05
a. Using suitable examples, explain the multiplier effect, automatic stabilizers and the crowding-out
effect. [10]
b. Evaluate the proposition that the most effective way to reduce unemployment is through the use
of demand-side policies. [15]
2.3 Nov 05
a. Explain the relationship between the Lorenz curve and the Gini coefficient. [10]
b. Evaluate the effectiveness of the various methods that government may use to redistribute
income. [15]
2.3 Nov 06
a. Explain possible causes of inflation. [10]
b. Evaluate the possible effects of a persistently high inflation rate on a countrys current account
balance and its exchange rate. [15]
2.3 May 07
a. Explain why a government might find it difficult to maintain a low rate of inflation as the
economy approaches full employment. [10]
b. Evaluate the proposition that the priority in economic management should be the maintenance of
low unemployment. [15]
2.2 Nov 07
a. Using one or more diagrams, explain the difference between the equilibrium level of national
income and the full employment level of national income. [10]
b. Evaluate the policies a government may use to increase the full employment level of national
income. [15]
2.3 Nov 08
a. Explain the difference between progressive taxation and regressive taxation. [10]
b. Evaluate the possible effects of a decrease in direct taxation on a countrys inflation rate,
unemployment rate and balance of payments. [15]
2.3 May 09
a. Explain the possible causes of a rise in the rate of inflation in an economy. [10]
b. Evaluate the possible impact on economic performance that may result from a government
decision to bring inflation under control. [15]
2.3 Nov 09
a. Explain how the rate of inflation might be measured and the factors which might make accurate
measurement difficult. [10]
b. Evaluate the extent to which an individual government can influence the rate of inflation in its
country. [15]
2.6 Nov 10
a. Explain how supply-side improvements to an economy may be achieved through the use of taxes
and government spending. [10]
b. Evaluate the use of supply-side policies to reduce unemployment. [15]
2.3 Nov 12
a. Explain how a government could bring about a more equal distribution of income. [10]
b. Evaluate the effectiveness of government policies designed to reduce inequalities in income.
[15]
2.3 May 13
a. Explain why the market system may not result in an equitable distribution of income. [10]
b. Evaluate government policies to promote equity in terms of their effects on efficiency in the
allocation of resources. [15]
2.1 Nov 13
a. Explain how changes in the size of the circular flow depend on the relative size of injections
and leakages. [10]
b. Evaluate the use of national income statistics for making comparisons of the standard of living
over time. [15]
2.3 Nov 13
a. Explain why measuring the rate of inflation using a consumer price index (CPI) may not be
accurate. [10]
b. Evaluate two government policies to reduce inflation. [15]
2.3 Nov 14
a. Distinguish between structural and demand-deficient (cyclical) unemployment. [10]
b. Discuss the view that the problem of unemployment can be reduced through the use of supply-
side policies. [15]
2.3 Nov 14
a. Using an appropriate diagram, explain how a recession might lead to more poverty. [10]
b. Evaluate the view that attempts to achieve greater equity in the distribution of income will
reduce economic efficiency. [15]