2025 Cambridge IGCSE Economics (0455) 模拟试题及答案详解

A farmer has a plot of land and can choose to grow either potatoes, carrots, or cabbages. The expected revenues from each crop are $500 for potatoes, $450 for carrots, and $350 for cabbages. What is the opportunity cost of choosing to grow potatoes, assuming carrots are the next best alternative?

The table shows the demand and supply schedules for a local commodity:

| Price per kg ($) | Quantity demanded (tonnes) | Quantity supplied (tonnes) |
|---|---|---|
| 1.00 | 80 | 20 |
| 1.50 | 60 | 40 |
| 2.00 | 50 | 50 |
| 2.50 | 40 | 60 |
| 3.00 | 30 | 70 |

What will happen if the price rises from $1.50 to $2.50 per kg?

A museum increases its entry fee from $10 to $12. As a result, the daily number of visitors falls from 500 to 450. What is the price elasticity of demand (PED) for entry tickets, and how does this change affect the museum's total revenue?

Which of the following functions is performed by commercial banks rather than the central bank of a country?

What is most likely to cause demand-pull inflation in an economy?

An economy operates a progressive income tax system with the following bands:

- Up to $20,000: 0% tax rate
- $20,001 to $50,000: 15% tax rate
- Over $50,000: 30% tax rate

How much income tax does an individual pay if they earn $60,000 in a year?

The currency of country Z depreciates against the currencies of its major trading partners. Assuming the international demand for Country Z's exports and imports is price-elastic, how is this depreciation most likely to affect Country Z's balance of trade and domestic inflation?

The table shows a selection of balance of payments data for a country:

| Component | Value ($m) |
|---|---|
| Trade in goods export | 500 |
| Trade in goods import | 700 |
| Trade in services export | 400 |
| Trade in services import | 300 |
| Primary income (net) | +100 |
| Secondary income (net) | -50 |

What is the current account balance of the country?

A farmer can use a field to grow either potatoes, carrots or onions. The expected profit from growing potatoes is \( \$1200 \), from carrots is \( \$1000 \), and from onions is \( \$800 \). The farmer decides to grow potatoes.

What is the opportunity cost of this decision?

The price of coffee increases. At the same time, there is a successful advertising campaign for tea, which is a popular substitute for coffee.

What is the likely effect of these changes on the demand curve for tea?

A market is dominated by a few large firms that are highly interdependent and compete heavily through non-price strategies such as brand advertising and loyalty schemes.

Which type of market structure does this describe?

An economy experiences a sustained decrease in the general price level over a twelve-month period.

What is this economic phenomenon called, and what is its likely effect on the purchasing power (real value) of money?

The table shows the exchange rate for the US dollar (USD) against the Euro (EUR) over two consecutive months.

$$\begin{array}{|l|c|} \hline \text{Month 1} & \text{USD 1.00} = \text{EUR 0.90} \\ \hline \text{Month 2} & \text{USD 1.00} = \text{EUR 0.85} \\ \hline \end{array}$$

What happened to the value of the USD and the EUR between Month 1 and Month 2?

A country’s international trade data for a year is shown in the table.

$$\begin{array}{|l|c|} \hline & \text{\$bn} \\ \hline \text{Export of goods} & 50 \\ \text{Import of goods} & 60 \\ \text{Export of services} & 30 \\ \text{Import of services} & 25 \\ \text{Primary income balance} & -5 \\ \text{Secondary income balance} & +2 \\ \hline \end{array}$$

What is the current account balance of the balance of payments for this country?

A public transport authority increases bus ticket prices by 10%. As a result, the total revenue generated from bus ticket sales increases by 5%.

What can be concluded about the price elasticity of demand (PED) for bus tickets?

A factory worker is laid off from an automobile manufacturing plant because the firm has installed advanced robotic assembly systems that operate faster and at a lower unit cost.

Which type of unemployment does this describe?

A student has $20. They can buy either a textbook, go to the cinema, or purchase a new shirt. The textbook is their first choice, the cinema is their second choice, and the shirt is their third choice. What is the opportunity cost of buying the textbook?

Which change will cause a movement along the demand curve for public bus transportation rather than a shift in its demand curve?

A perfume manufacturer increases the price of its luxury brand by 10%. As a result, its total revenue increases. What can be concluded about the price elasticity of demand (PED) for this brand of perfume?

What is a primary function of a country's central bank but not of its commercial banks?

A market changes from being a monopoly to being highly competitive. What is the most likely consequence of this change?

An economy experiences an increase in its productive capacity, allowing it to produce more capital and consumer goods. How is this change illustrated on a production possibility curve (PPC) diagram?

The value of the Turkish Lira falls against the Euro. What is the most likely consequence of this depreciation for the Turkish economy?

A country's balance of payments shows the following: Exports of goods = $120bn, Imports of goods = $140bn, Exports of services = $60bn, Imports of services = $50bn, Primary income balance = -$10bn, Secondary income balance = +$5bn. What is the current account balance of this country?

A company has limited investment funds and is choosing between three projects. It ranks them in order of preference: 1. upgrading its digital infrastructure, 2. training its workforce, 3. installing solar panels on its office building. The company decides to proceed with upgrading its digital infrastructure. What is the opportunity cost of this decision?

The price of a product increases by 10%. As a result, the total amount spent on the product by consumers decreases. What can be concluded about the price elasticity of demand (PED) for this product?

The economic data for a country is as follows: Exports of goods = $500m; Imports of goods = $600m; Exports of services = $300m; Imports of services = $250m; Primary income receipts = $120m; Primary income payments = $70m; Secondary income receipts = $40m; Secondary income payments = $60m. What is the country's current account balance?

A government decides to privatise a state-owned passenger railway system, which previously operated as a monopoly, and allows new private train operators to enter the market. How is this policy most likely to affect passenger fares and consumer choice?

A country's exchange rate depreciates. How will this affect the price of its imports (in domestic currency) and the price of its exports in foreign markets?

An economy is experiencing high rates of demand-pull inflation. Which combination of fiscal policy measures is most likely to reduce this inflation?

### Source material: The economy of Lumina

| Lumina fact file | 2023 |
| :--- | :--- |
| GDP | $320.0bn |
| Population | 80.0m |
| Poverty rate | 15.0% |
| Unemployment rate | 8.5% |

Lumina has traditionally relied on agricultural exports like cocoa, coffee, and copper, but its tertiary sector, particularly digital financial services and eco-tourism, has grown rapidly. Lumina's exports now include financial consulting, copper ore, raw cocoa beans, manufactured chocolate, and eco-tourism.

There is a massive expansion in green energy infrastructure. Lumina is building a large offshore wind farm which requires massive finance, specialised technology, and skilled technicians. Firms are taking a significant risk with this project as they are constructing these turbines before long-term demand has been fully secured. If household incomes decline, the domestic market for premium green energy might become unprofitable.

Eco-tourism is a key pillar of economic growth for Lumina. The country boasts unique natural attractions such as pristine rainforests, rare wildlife, and a very stable political environment. The government has heavily invested in modern eco-resorts and high-speed rail links connecting major national parks, which also attract international tourists.

Government deregulation of the telecommunications sector has encouraged substantial private investment. From 2016 to 2022, telecommunications investment (as a % of GDP) and national economic growth rates showed distinct patterns. Between 2016 and 2018, investment rose from 15% to 18%, while economic growth increased from 3.0% to 4.5%. Between 2018 and 2020, investment fell from 18% to 12%, and economic growth fell from 4.5% to 1.0%. However, from 2020 to 2021, investment continued to slide to 10%, but economic growth rose to 3.5%. Finally, in 2021-2022, investment rose to 14% and economic growth accelerated to 5.0%.

The deregulation of telecom markets has led to an increase in the number of private internet service providers. Greater digital access will support education, training, and future improvements in living standards. However, high-speed fiber internet remains expensive, and private providers might ignore rural regions, potentially increasing inequality as low-income groups remain digitally excluded.

In 2023, Lumina’s currency, the Lumi (LUM), depreciated by 30% against the Euro. This fall in the value of the currency has increased import prices and impacted the purchasing power of citizens. However, some domestic service industries, especially eco-tourism, have benefited because holidays in Lumina have become much cheaper for European visitors.

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### Questions

**1 (a)** Calculate the total number of Lumina's population living in poverty. [1]

**1 (b)** Identify two primary sector goods exported by Lumina. [2]

**1 (c)** Explain how constructing the new offshore wind farm can lower Lumina’s unemployment rate. [2]

**1 (d)** Explain why eco-tourism acts as an effective driver of economic growth in Lumina. [4]

**1 (e)** Draw a demand and supply diagram showing the likely effect of falling household incomes on Lumina’s premium green energy market. [4]

**1 (f)** Analyse the relationship between investment as a percentage of GDP and Lumina's economic growth rates. [5]

**1 (g)** Discuss whether or not the deregulation of Lumina's telecommunications sector will improve living standards. [6]

**1 (h)** Discuss whether or not a depreciation of Lumina’s currency will harm its domestic economy. [6]

In 2023, the government of a small, open island economy decided to reduce its corporate income tax rate to attract foreign direct investment. During the same year, the country's national currency experienced a significant depreciation against major trading currencies. This depreciation had wide-ranging impacts on local consumer prices and the balance of payments.

(a) Define depreciation. [2]
(b) Explain two reasons why a government might reduce corporate income tax. [4]
(c) Analyse how a depreciation of a country's currency can affect its current account balance. [6]
(d) Discuss whether or not a reduction in corporate income tax will benefit an economy. [8]

The supply of electricity in many countries has historically been operated by a single state-owned monopoly. In recent years, some governments have deregulated this market, allowing private competitive firms to enter. This shift has changed pricing strategies, consumer options, and the total consumption of electricity, which has environmental implications.

(a) Define monopoly. [2]
(b) Explain two factors that can make the demand for a product price-inelastic. [4]
(c) Analyse how the deregulation of an industry can lead to a reduction in market failure. [6]
(d) Discuss whether or not a monopoly market structure is beneficial for consumers. [8]

Developing nations often experience high rates of net migration and a youthful population structure. Governments in these nations frequently use supply-side policies, such as investments in healthcare and vocational training, to improve economic growth and reduce differences in living standards compared to developed nations.

(a) Define net migration. [2]
(b) Explain two reasons why a country might have a high birth rate. [4]
(c) Analyse how an increase in government spending on vocational training can increase living standards. [6]
(d) Discuss whether or not supply-side policies are the best way for a government to reduce poverty. [8]