ALEVEL Economics past paper.pdfVIP

OXFORD CAMBRIDGE AND RSA EXAMINATIONS Advanced Subsidiary GCE ECONOMICS 2881 THE MARKET SYSTEM Friday 9 JUNE 2006 Afternoon 1 hour Additional materials: Designated Answer Booklet [2881/AB] TIME 1 hour INSTRUCTIONS TO CANDIDATES Write your name, Centre number and candidate number in the spaces provided on the answer booklet. Answer all questions. Write all your answers on the separate answer booklet provided. INFORMATION FOR CANDIDATES The number of marks is given in brackets [ ] at the end of each question or part question. The quality of your written communication will be taken into account in marking your answer to the question labelled with an asterisk (*). This question paper consists of 4 printed pages. SP (SC/SLM) S96172/3 © OCR 2006 [H/100/3483] Registered Charity Number: 1066969 [Turn over 2 Answer all parts of this question in the accompanying answer booklet. Making choices Economists have to deal with many aspects of the ‘economic problem’. This problem affects the ways in which individuals, firms and governments behave. Most of the decisions that are taken require choices to be made. Economists use a variety of techniques to analyse why choices have to be made, as well as the causes and consequences of these choices. These techniques include: • diagrams such as a Production Possibility Curve (PPC); • statistical data such as demand schedules; • investigations, for example, into the actual behaviour of firms in different market structures. Taken together, these