Paper Reference(s) 4350/2H London Examinations...Jun 07, 2010 · 4350/2H London Examinations IGCSE...
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Examiner’s use only Team Leader’s use only Surname Initial(s) Signature Centre No. Turn over Candidate No. Question Leave Number Blank 1 2 3 4 Total Paper Reference(s) 4350/2H London Examinations IGCSE Economics Paper 2H Higher Tier Monday 7 June 2010 – Morning Time: 2 hours 15 minutes Materials required for examination Items included with question papers Nil Nil Instructions to Candidates In the boxes above, write your centre number, candidate number, your surname, initial(s) and signature. Check that you have the correct question paper. Some questions must be answered with a cross in a box ( ). If you change your mind about an answer, put a line through the box ( ) and then mark your new answer with a cross ( ). Answer ALL the questions. Write your answers in the spaces provided in this question paper. Do not use pencil. Use blue or black ink. Information for Candidates The marks for individual questions and the parts of questions are shown in round brackets: e.g. (2). There are 4 questions in this question paper. The total mark for this paper is 100. There are 20 pages in this question paper. Any blank pages are indicated. Calculators may be used. Advice to Candidates Write your answers neatly and in good English. You are advised to spend the same amount of time on each of the 4 questions. Paper Reference 4350 2H This publication may be reproduced only in accordance with Edexcel Limited copyright policy. ©2010 Edexcel Limited. Printer’s Log. No. M36871A W850/4350/57570 1/1/1/1/ *M36871A0120*
Transcript of Paper Reference(s) 4350/2H London Examinations...Jun 07, 2010 · 4350/2H London Examinations IGCSE...
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Examiner’s use only
Team Leader’s use only
Surname Initial(s)
Signature
Centre
No.
Turn over
Candidate
No.
Question Leave Number Blank
1
2
3
4
Total
Paper Reference(s)
4350/2H
London ExaminationsIGCSEEconomics
Paper 2H
Higher Tier
Monday 7 June 2010 – Morning
Time: 2 hours 15 minutes
Materials required for examination Items included with question papers
Nil Nil
Instructions to Candidates
In the boxes above, write your centre number, candidate number, your surname, initial(s) and signature. Check that you have the correct question paper.Some questions must be answered with a cross in a box ( ).If you change your mind about an answer, put a line through the box ( ) and then mark your new answer with a cross ( ).Answer ALL the questions. Write your answers in the spaces provided in this question paper. Do not use pencil. Use blue or black ink.
Information for Candidates
The marks for individual questions and the parts of questions are shown in round brackets: e.g. (2).There are 4 questions in this question paper. The total mark for this paper is 100. There are 20 pages in this question paper. Any blank pages are indicated.Calculators may be used.
Advice to Candidates
Write your answers neatly and in good English.You are advised to spend the same amount of time on each of the 4 questions.
Paper Reference
4 3 5 0 2 H
This publication may be reproduced only in accordance with
Edexcel Limited copyright policy.
©2010 Edexcel Limited.
Printer’s Log. No.
M36871AW850/4350/57570 1/1/1/1/
*M36871A0120*
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Answer ALL the questions.
Question 1
Figure 1a shows the demand and supply of cigarettes.
Q Quantity
Price
P
S
D
Figure 1a
(a) On Figure 1a
(i) Draw a new demand curve, D1, to show the effect of a government health
campaign which warns that cigarettes can lead to ill health.
(1)
(ii) Label the new equilibrium price P1 and new equilibrium quantity Q
1.
(2)
(iii) If government spending on the health campaign leads to reduced spending on
education, this is an example of
Opportunity cost
A subsidy
An inferior good
Division of labour
(1)
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The price elasticity of demand for cigarettes is inelastic.
(b) (i) Define “price elasticity of demand”.
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(2)
(ii) Briefly explain one reason why the demand for cigarettes is likely to be price
inelastic.
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(2)
(iii) Briefly explain one reason why the elasticity of supply of tobacco is likely to be
price inelastic.
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(2)
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(iv) To what extent does price elasticity of demand influence the government’s decision to place an indirect tax on cigarettes?
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(c) (i) Briefly explain two ways in which a cigarette manufacturer can increase the amount produced by each worker.
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(ii) What are the most important factors affecting the wages of workers in a cigarette
factory? Give reasons for your answer.
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(5) Q1
(Total 25 marks)
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Question 2
In 2000 Deutsche Post, the German post office, was privatised. Until January 2008 it was
a monopoly and the only firm allowed to deliver letters weighing under 50 grams within
Germany. From January 2008 other postal firms were allowed to compete with Deutsche
Post.
Study the paragraph above.
(a) From the list below complete the following sentences.
secondary companies tertiary private
state individuals invisible
(i) Before 2000 Deutsche Post was owned by the ...................................... and then
it was transferred to the ...................................... sector.
(2)
(ii) Farming is in the primary sector. Car manufacturing is in the
...................................... sector and the Post Office is in the
...................................... sector of the economy.
(2)
(b) After Deutsche Post was privatised and large foreign firms entered the market, the market structure changed from a monopoly to an oligopoly.
(i) With the aid of examples from a country of your choice, distinguish between
monopoly and oligopoly.
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(4)
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(ii) Do the advantages of privatisation outweigh the disadvantages for the consumer?
Explain your answer.
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(5)
(c) The area of Gdansk in Poland has suffered from industrial decline.
(i) Which of the following might result from the industrial decline of a region?
Economic growth
Unemployment
Inflation
Increased standard of living
(1)
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(ii) Identify one financial and one non-financial incentive a government can introduce
to encourage firms to set up in an area of industrial decline.
Financial incentive:
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Non-financial incentive:
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(2)
(iii) Are government financial incentives more successful than other policies which
encourage firms to set up in an area? Explain your answer.
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(iv) Too many firms in one area can lead to external costs.
Complete the following equation
External costs = .......................................................... – private costs
(1)
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(v) Identify one external cost and briefly explain one method a government can use
to reduce this cost.
External cost: ..............................................................
Policy:
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(3) Q2
(Total 25 marks)
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Question 3
Figure 3a shows the rate of inflation in Armenia and Germany from 2007 to 200�.
4.5
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3.5
3
2.5
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1.5
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0
2007 2008 200� estimate
Rate of Inflation 2007–2009In
flati
on
rate
Armenia
Germany
Figure 3a
(a) (i) With reference to the data in Figure 3a, compare the rate of inflation in Armenia and Germany from 2007 to 200�.
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(ii) If a basket of goods in Germany cost 100 euros in 2007, how much would the same basket of goods cost in 2008? Show your calculations.
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(iii) Creditors and people on fixed incomes suffer more than others in an economy during times of inflation. Do you agree with this statement? Give reasons for your answer.
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(iv) Which of the following government measures can reduce inflation in an
economy?
Reduce income tax
Increase government spending on pensions
Increase tariffs
Reduce government investment
(1)
Figure 3b shows the economic growth of Armenia and Germany from 2007 to 200�.
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0
–22007 2008 200� estimate
Economic Growth 2007–2009
Eco
nom
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row
th %
Armenia
Germany
Figure 3b
(b) (i) What is happening to real Gross Domestic Product in Armenia from 2007 to 200�? Explain your answer.
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(ii) With reference to the data in Figure 3b identify the one similarity and one
difference in the economic growth rates of Armenia and Germany from 2007
to 2008.
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(iii) To what extent are the problems associated with negative economic growth
greater than the problems associated with positive economic growth?
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(6) Q3
(Total 25 marks)
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Question 4
In 2008 the US multinational company Tyco announced it was to move a manufacturing plant
from Ireland to Central America.
(a) (i) What is meant by a “multinational” company?
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(1)
(ii) Briefly explain two possible reasons why Tyco decided to move from Ireland to
South America.
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(4)
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(iii) The problems multinationals create when they set up in a country are greater than
the problems which occur when they leave. Do you agree with this statement?
Give reasons for your answer.
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(6)
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(b) Figure 4a shows the current account of the balance of payments for Turkey in 2007.
Complete the table below.
Million US Dollars
Goods: exports 115.0
Goods: imports 162.0
Balance of (i) ...................................... (ii) ......................................
Invisible exports 35.1
Invisible imports 28.1
Balance of invisibles 7.0
Balance on current account (iii) ......................................
Figure 4a
(3)
(iv) Briefly explain two policies the Turkish Government could introduce to solve its
current account problems.
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(c) (i) What is meant by a trading bloc?
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(2)
(ii) In 2005 Turkey started negotiations for full membership of the European Union. Is membership of a trading bloc always beneficial to a country? Give reasons for your answer.
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(Total 25 marks)
TOTAL FOR PAPER: 100 MARKS
END
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