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UNIVERSAL SCHOOL
MOCK EXAMINATION-2019

CANDIDATE
NAME

CENTRE CANDIDATE
NUMBER NUMBER

ECONOMICS [GRADE 12] 9708/42


Paper 4 Data Response and Essays March 2019
2 hour 15 minutes

Additional Materials: Answer Booklet/Paper

READ THESE INSTRUCTIONS FIRST

If you have been given an Answer Booklet, follow the instructions on the front cover of the
Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.

Section A
Answer Question 1.

Section B
Answer any two questions.

You may answer with reference to your own economy or other economies that you have studied
where relevant to the question.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.

This document consists of 4 printed pages.


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Section B
Answer any two questions.

2 (a) Analyse how indifference curve theory explains why a consumer will normally buy more
of a good at a lower price than at a higher price. [12]

(b) Discuss why there might be exceptions to this normal response, distinguishing the
income effect from the substitution effect. Consider the relevance of these exceptions to
firms and the government. [13]

3 (a) Explain the market failure which arises from the characteristics of demerit and public
goods [12]

(b) Discuss the methods that a government might use to influence the consumption of
demerit and public goods [13]

4 (a) Explain how a firm derives its demand curve for labour and consider how the structure of
the product market in which the firm operates affects the firm’s demand curve for labour.

[12]

(b) Discuss whether it is possible for a trade union to negotiate higher wages and more
employment. [13]

5 (a) Explain why people demand money according to the liquidity preference theory. [12]

(b) Discuss how interest rate policy might prevent a rise in inflation. [13]

6 (a) Explain how the age and employment structure of a population in a developing country
may differ from those of a developed country. [12]

(b) Consider whether a developing country is likely to experience different types of


unemployment compared with a developed country. [13]

7 National Income statistics are used to calculate a country’s GDP. Discuss how these
statistics may be used to determine whether one country has higher living standards
than another. [25]

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