MICROECONOMICS
1. Explain two factors that might give rise to economies of scale for a firm. .
2. Discuss the view that legislation is the best way of dealing with the problem of
monopoly power.
3. With reference to the concept of excess demand, explain how a decrease in supply
of a good would lead to a new market equilibrium.
4. A government decides to impose an indirect tax on unhealthy drinks. Discuss the
5. consequences for the stakeholders in these markets.
MACRO
1. Explain the possible impact of an increase in wealth and consumer confidence on
aggregate demand. [10]
2. Examine why, in contrast to the monetarist/new classical model, the economy will not
automatically return to the full employment level of output in the Keynesian model. [15]
3. Explain how expansionary fiscal policy could be used to close a deflationary
(recessionary) gap. [10]
4. Evaluate the view that fiscal policy is the most effective way of achieving long-term
5. economic growth. [15]