Economics

Foundation Certificate in , and Social Sciences
Kaplan International College London
Economics
End of Module Open Book Mock Examination Question Book
Time Allowed: 3 Hours
Instructions to students:
1. Your FC334 Economics module assessment is an online, timed open book examination. This means that you can access module learning resources specified by your teacher (and only those materials) whilst you are answering the examination questions. The questions will not ask you to copy any specific information from your learning materials, rather you will be asked to use the information and apply it in a thoughtful way. This does not mean you will be summarising the information from a textbook; it means you will be asked to interpret or use the information in relation to the specific examination questions and/or problems/case studies/scenarios
2. You are expected to work on this assessment on your own. Please note that you may be required to attend an online meeting with your teacher to confirm that it is your own work.
3. There are 10 questions in this paper. You should attempt to answer all questions.
4. In order to complete this assessment successfully you must:
• read the question paper carefully before you begin to answer
• follow the instructions on how to answer each question fully
• type your answers into a document and save it as MS Word file. For answers that require equations, formulae, graphs or diagrams you should write your answers clearly on paper and take a photograph of each page. Make sure you indicate the number of question you are answering.
• please save each file following this format:
<YOUR STUDENT NUMBER – MODULE CODE – OB MockExam File(n)-30.11.20>
eg: <P12345-FC334-OBMockExamFile(1)-30.11.20>
5. You must submit your assessment file(s) by 30 November 2020 13:00 UK Time.
Now proceed to answer the examination questions below.
Student ID number:
FC334 Economics End of Module Examination VERSION 1 Page 2 of 7
Part A – Multiple Choice Questions (2.5 mark per question = 10 marks total)
Please answer ALL of the following questions.
1. According to below diagram, if the price of gasoline is £1
a. there would be a surplus of 300 units.
b. there would be a shortage of 300 units.
c. there would be a shortage of 100 units.
d. there would be a surplus of 100 units.
2. A demand is said to be perfectly elastic when the PED coefficient is equal to ………….
a. -∞
b. zero
c. greater than 1
d. Between 0 and 1.
Student ID number:
FC334 Economics End of Module Examination VERSION 1 Page 3 of 7
3. The figure below shows short-run cost and demand curves for a perfectly competitive firm firm.
Refer to the figure above, what is the profit maximizing / loss minimizing output the firm will produce
a. 2.50.
b. 3.50.
c. 5.
d. 7.
4. Refer to the figure below, analyse the firm’s profit or loss.
a. Profit of £2.50.
b. Loss of £15.
c. Profit of £15.
d. Loss of £2.50.
Continued on the next page
Student ID number:
FC334 Economics End of Module Examination VERSION 1 Page 4 of 7
PART B Analysis and Application /Questions – answer ALL question (40 marks)
1. The following table lists maximum combinations of salmon and trout that can be farmed by fisherman Jack when he uses all his resources.
combination
Trout
Salmon
A
21
0
B
20
10
C
18
20
D
14
30
E
8
40
F
0
50
(i) Using the data above, draw the production possibility frontier (PPF) for fisherman Jack
(5 marks)
(ii) Explain what point B, shows. Full answer required.
(2 marks)
(iii) Assume that initially Jack is using more resources to produce trout and he is producing at point C. Now Jack decided to produce the combination E. Explain what is happening here. Calculate the opportunity cost of Jack.
(3 marks)
2. Using the table given above, answer the following questions.
(i) Show the combination of 12 units of trout and 20 units of salmon on a diagram. What would you say about this combination?
(3 marks)
(ii) His friend advises Fisherman Jack that he should be producing 20 trout and 40 salmon. How would he respond to his friend?
(4 marks)
(iii) Explain the differences between productive efficiency and allocative efficiency. Which is the best combination of production?
(3 Marks)
Continued on the next page
Student ID number:
FC334 Economics End of Module Examination VERSION 1 Page 5 of 7
3. The following table gives the supply schedule for company A.
Price (£)
Quantity supplied (Qs)
1
45
3
70
5
95
7
120
9
145
11
180
(i) What does the price elasticity of demand (PES) measure?
(3 marks)
(ii) How is it calculated? Write down the full formulae (using the arch elasticity method) .
(2 marks)
(iii) Assume that the current price is £5. Calculate the price elasticity of supply if the price increase to £7 (show all your calculations).
(4 marks)
(iv) Is supply elastic, unit-elastic, or inelastic? Explain why.
(3 marks)
(v) What would the slope of the supply curve look like? (Based on your calculation and your analysis, draw the supply curve for company A.
(4 marks)
(vi) What kind of product Company A might be producing? Give an example.
(4 Marks)
Continued on the next page
Student ID number:
FC334 Economics End of Module Examination VERSION 1 Page 6 of 7
PART C (25 marks)
Please answer ALL questions.
Using the information given below for the Kingdom of Tescara and answer the following questions. Table 1. – Economic indicators of the Kingdom of Tescara
Year
1999
2019
GDP $ billions
3022.5
3811.3
GDP per capita
36765
45959
Inflation
0.33
2.14
Total Unemployment
7.9
3.4
Young Unemployment
8.5
6.4
Table 2. – Demographic indicators of the Kingdom of Tescara
Year
1999
2019
Population (millons)
81.4
83.1
Population ( 65 +) (millions)
13.4
17.8
Table 3. – Social indicators of the Kingdom of Tescara
Year
1999
2019
HDI
0.861
0.939
Life expectancy at birth
77.7
81.2
Expected year of schooling
16.2
17.1
Current health expenditure (% of GDP)
9.8
11.1
Inequality in education (%)
2.1
2.7
Inequality in income (%)
15.8
17.7
O2 emissions
10
8.9
Fossil fuel energy consumption (% of total energy consumption)
83.6
78.9
1. (a) Interpreting the data given above, compare the economic indicators in Kingdom of Tescara from 1999 to 2019. What can you say about the economic growth of the county?
(5 Marks)
(b) Using the aggregate demand and aggregate supply curves, draw a diagram showing the GDP and Price levels in 1999 and 2019.
(5 Marks)
2. (a) Using your knowledge and interpreting the data given above, explain how changes in demographic structure would affect the aggregate supply?
(5 Marks) (b) Using your knowledge and interpreting the data given above, explain the relationship between the inflation and economic growth.
(5 Marks)
3. Compare the economic growth and standards of living in the Kingdom of Tescara and explain to what extent has economic growth contributed to living standards. (5 Marks)
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