Original questions for every topic, with worked explanations and feedback on written answers.
Section I style
Multiple choice, worked or timed
Section II style
Short answers, calculations and data
Sections III and IV
Stimulus-based and extended responses
Written answers
Read against the mark points, with your next step
Try 4 questions
Question 1
Hartvale, a hypothetical small economy, imports kettles at a world price of 5 dollars. Its domestic demand is Q = 200 − 10P, where P is the price in dollars that buyers pay, and its domestic supply is Q = 10P - 20, where P is the price in dollars that producers receive; Q is thousands of kettles (invented figures). In place of a tariff, the government pays its producers a subsidy of 2 dollars on every kettle they make. What does the subsidy cost the government?
Question 2
Which of the following is an example of a bilateral free trade agreement?
Question 3
Consumer price index of a hypothetical economy (invented figures)
Quarter
CPI
December, year 1
120.0
March, year 2
121.2
June, year 2
122.4
September, year 2
123.0
December, year 2
124.8
The table shows a hypothetical economy's consumer price index over five quarters (invented figures). What was the annual inflation rate to the December quarter of year 2?
Question 4
A hypothetical business telephone market (invented)
Measure
Before reform
Five years after
Number of firms
2
5
Average price of a plan (dollars a year)
300
240
Plans sold (million)
10
14
Employment (workers)
12 000
10 500
The table gives invented figures for a hypothetical business telephone market before deregulation and five years after it. Which conclusion is supported by the data?