Section A
Answer all questions in the spaces provided.
For questions with four responses, only one answer per question is allowed.
For each question, completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 The central purpose of economic activity is to produce goods and services that
[1 mark]
A create tax revenue.
B maximise profit.
C minimise externalities.
D satisfy needs and wants.
0 2 An individual obtains a bank loan to start a business.
Which factor of production has changed?
[1 mark]
A Capital
B Enterprise
C Labour
D Land
Do not write
outside the
box
3
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IB/H/Jun24/8136/1
Do not write
outside the
box 0 3 Opportunity cost is defined as
[1 mark]
A the amount spent on the best option.
B the benefit given up from the next best alternative.
C the price paid for the next best alternative.
D the satisfaction from choosing the best option.
0 4 Which of the following is most likely to be a benefit of specialisation?
[1 mark]
A Increased job satisfaction for workers
B Increased threat of competition for firms
C Reduced average costs of production for firms
D Reduced choice for consumers