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1、IFYEC001EconomicsTHENCUKINTERNATIONALFOUNDATIONYEAR(IFY)EconomicsExaminationSessionTimeAllowedSemesterTwo3hours10minutes(Including10minutesreadingtime)INSTRUCTIONSTOSTUDENTSSECTIONAAnswerALLquestions.Thissectioncarries40%oftheexaminationmarks.SECTIONBA
2、nswer3questions.Thissectioncarries60%oftheexaminationmarks.Eachquestionisworth20marks.?Youarerecommendedtospend1houronSectionAand2hoursonSectionB.?WriteyourNCUKStudentReferenceNumberclearlyontheAnswerBookletinthespaceprovided.?WriteallyouranswersintheA
3、nswerBooklet.Additionalsheetswillbeprovidedonrequest.?Themarksforeachpartofthequestionareindicatedinsquarebrackets[].?Answersmustnotbewrittenduringthefirst10minutes.?Clearlywritethesectionletter,thenumberandpart(s)ofquestionsattemptedatthestartofeachan
4、swer.?Nowrittenmaterialisallowedintheexaminationroom.?Nomobilephonesareallowedintheexaminationroom.V30910(revised090311)?NorthernConsortiumUKLtdPage1of11IFYEC001EconomicsSectionA(30Questions)AnswerALLquestions.Thissectioncarries40marks.Questions1–20:se
5、lecteitherA,B,CorDandwriteyouranswerintheAnswerBookletprovided.1Whichoftheseisapositivestatement?[1]ATheBankofEnglandbaseratewasleftat0.5%attheJunemeetingoftheMPCIN2009.BTaxationshouldredistributeincomefromrichtopoor.CInflationismoreharmfultoaneconomyt
6、hanunemployment.DMonopoliesaredamagingtoamarket.2Whichofthesituationsdescribedbelowisnotshownbyoneofthe[1]pointsontheProductionPossibilityFrontierbelow??Aneconomywithunemployedresources.?Aneconomywherethegovernmenthasnationalisedproduction.?Aneconomywh
7、erethestatehasleftresourceallocationtomarketforces.PrivateSectorOutputABCPublicSectorDOutputDAABBCCDD3Whatisthesituationwhentheprivatebenefitsofproductionfora[1]goodexceeditssocialcostsofproduction?APositiveexternalitiesBNegativeexternalitiesCMeritgood
8、DDemeritgoodV30910(revised090311)?NorthernConsortiumUKLtdPage2of11IFYEC001Economics4Whichoneofthefollowingistheleasteffectivemethodtoreduce[1]thenegativeexternalitiesofcongestioncausedbycartrafficincities?AChargingcommuterstodriveintoth
