Every piece of knowledge, every analysis chain and every evaluation point that the 66 Unit 7 Paper 4 essay questions in the bank (2016–2026) ask for. Tick an item only when you can explain it from memory, out loud or on paper, without looking.
清单条目使用英文，也就是考试作答所用的语言。标题、按钮和说明仍为中文。
0 / 247ticked
How to use this checklist
Cover the page and try each item out loud or on paper. Tick it only when you got it right without looking.
Items with a diagram: draw it yourself first, then open it to compare.
Use the 'Asked in' links to open the real questions that need an item, and write one of them.
Work on the items you cannot tick first. 'Hide ticked' shows only those.
Before a test, print the checklist and go through it again on paper.
9708/42/M/J/26Evaluate whether the marginal utility theory of demand provides an adequate explanation of market demand for both normal goods and inferior goods.[20]
9708/44/M/J/26Assess the extent to which marginal utility theory explains the downward sloping market demand curve for a good.[20]
9708/44/O/N/25Evaluate, with the aid of a diagram, whether the diminishing marginal utility theory of demand provides an adequate explanation of the market demand curve for all goods and services.[20]
9708/42/O/N/24Evaluate whether marginal utility theory can fully explain the link between the changing price of a good and quantity demanded of that good.[20]
9708/41/M/J/25With the help of a diagram, evaluate the use of indifference curve analysis to explain the relationship between a change in the price of a product and the change in an individual consumer's demand for this product.[20]
9708/42/O/N/23Evaluate the use of indifference curve analysis to derive the demand curve for a normal good and the demand curve for an inferior good.[20]
9708/42/M/J/22A rational consumer will always purchase less of an item as the price increases. Discuss, with the use of indifference curve analysis, whether this statement is correct.[25]
9708/43/O/N/18A city bus company proposes to reduce passenger fares. Explain whether consumers always buy more of a good at a lower price than a higher price. Consider what might be the effect on demand for bus journeys and the revenue of the bus company of the lower fares.[25]
9708/42/F/M/18The UK Government has established a behavioural insight team known as the 'nudge unit,' which attempts to change consumer behaviour by persuasion. Explain how indifference curve theory predicts a consumer will react to changes in income and changes in the price of a product in order to maximise satisfaction. Consider whether the use of 'nudge' theory (persuasion) conflicts with this theory of maximising satisfaction.[25]
9708/41/O/N/17Use indifference curves to distinguish between the income and substitution effects of a price change. Discuss whether the distinction might be important for a manufacturer.[25]
9708/42/M/J/17Choice is an essential part of economics. Sometimes consumers change their choices either when shops have special offers on previously very expensive luxury products, or when advertising persuades them to change their preferences. Analyse how the economic theory of indifference curves can be used to construct a consumer's demand curve. Discuss whether this theory can explain the above changes in choice.[25]
9708/43/O/N/16The use of indifference curves to establish a consumer's equilibrium is purely a theoretical tool. They show the relation between two goods; they do not show prices or income and, therefore, cannot be used to determine a demand curve. How far do you agree with this statement?[25]
Almost every essay here asks whether free markets, competition or government intervention deliver efficiency, so build each answer on the two efficiency conditions. The diagrams these essays need are in 7.4 (externalities and merit goods) and 7.6 (perfect competition and monopoly); the essays on health care, private education and cost-benefit analysis also lean on 7.4.
The 24 past-paper questions on this section
9708/44/M/J/25With the help of a diagram, consider whether economic efficiency can be achieved without government intervention in a market economy.[20]
9708/41/O/N/23The provision of health care by the public sector is inefficient and therefore all health care should be provided by firms operating in the private sector. Evaluate this comment.[20]
9708/41/M/J/23To improve allocative efficiency economists frequently advise governments to remove existing subsidies to the private sector providers of education. With the help of a diagram, evaluate this advice.[20]
9708/41/O/N/22Explain what is meant by cost benefit analysis and consider how it might be used by a government to decide whether a new hospital should be built.[25]
9708/41/O/N/21'The cause and extent of market failure depends entirely upon the type of market structure under consideration.' Discuss this statement.[25]
9708/41/M/J/21Assess the suggestion that a free market economy is neither possible nor desirable.[25]
9708/41/M/J/21Assess the suggestion that a free market economy is neither possible nor desirable.[25]
9708/41/M/J/20Discuss whether competitive markets in the private sector are the best way to achieve an efficient allocation of resources.[25]
9708/42/O/N/19'Free markets make the most efficient use of resources and are the foundation of a successful economy.' To what extent do you agree with this?[25]
9708/42/M/J/19Explain what is meant by 'market failure' and consider how far government intervention can reduce market failure.[25]
9708/42/O/N/18Discuss whether economic efficiency is always achievable in a market economy.[25]
9708/41/O/N/18'A society that cares about efficiency needs to provide government funds for social sciences that work on the assumption that efficiency matters'. (Royal Society of Arts Journal, Issue 4, 2013) Explain what is meant by economic efficiency. Consider whether you agree that the only way to achieve economic efficiency is through public sector intervention in the economy.[25]
9708/42/M/J/18A free market economy operates to the benefit of both consumer and producer to achieve the most efficient outcome, and therefore there is no role for a government to play in controlling the market. Consider the extent to which this statement is correct.[25]
9708/43/O/N/17In recent years, many countries have faced economic difficulties. At such a time, discovering the best means of allocating scarce resources becomes much more pressing. Consider whether the study of economics has anything to offer to achieve an efficient allocation of resources in a country.[25]
9708/41/O/N/17Discuss whether privatisation and an increase in competition would hinder or help the achievement of economic efficiency.[25]
9708/43/M/J/17Firms should be allowed to produce in the manner they wish and consumers allowed to buy what they believe they want. Discuss whether this is the best means of ensuring an efficient use of an economy's resources.[25]
9708/41/M/J/17'Lack of efficiency in the use of resources is not due to the market's inability to function. It is due to government intervention in a system that is best left to its own workings.' (Source: RSA Journal, Issue 4, 2013) Consider this opinion.[25]
9708/42/F/M/17A society that says it cares about efficiency needs to abandon the notion of a market system to allocate resources. Markets only serve self-interest, they are never efficient. Discuss whether this opinion is supported by economic analysis.[25]
9708/43/O/N/16'The price mechanism is the most effective and certain method for ensuring an efficient allocation of resources to achieve maximum welfare.' Comment on this opinion.[25]
9708/42/O/N/16It has been said that the aim in the allocation of resources should be to achieve the greatest happiness for the greatest number of people. Discuss whether economics has anything to say about the best way to maximise welfare from the use of resources.[25]
9708/41/O/N/16Adam Smith's eighteenth century idea of an 'invisible hand' where the free market allocates resources effectively and efficiently is false because the 'invisible hand' cannot work in a complex modern economy. Do you agree with this argument?[25]
9708/43/M/J/16Private sector developers have discovered potentially profitable supplies of gas and proposed a new method of extracting it that involves drilling in some areas of natural beauty. They say it is important that a country's resources are used efficiently. Consider whether they might mean the same as economists when they talk about the efficient use of resources and whether it is possible in practice for private organisations to achieve such economic efficiency.[25]
9708/42/M/J/16'Government economic policy is based on the idea that people cannot be trusted to choose what is good for them but instead sometimes choose things that are harmful to themselves or detrimental to the environment (or both). Therefore a free market cannot allocate resources efficiently.' Do you support this argument?[25]
9708/42/F/M/16'The best way to increase economic welfare is to encourage competition in a market system.' Consider whether you agree with this view.[25]
The policies that correct externalities (taxes, subsidies, permits, regulation, property rights, information) are taught with Unit 8 in Chapter 38, but every essay here asks for them, so they are listed here. For each externality, draw the diagram with its welfare-loss triangle first, then the same diagram with the policy.
The 7 past-paper questions on this section
9708/43/O/N/24Negative externalities of production cause market failure. With the help of a diagram, assess the extent to which the introduction of indirect taxation is likely to address this cause of market failure.[20]
9708/41/O/N/24Governments in many countries are promoting policies that reduce the impact of the negative externalities. Evaluate, using appropriate diagram(s), the extent to which two policies used to reduce negative externalities can also improve allocative efficiency.[20]
9708/42/F/M/24With the help of a diagram, assess the effectiveness of a government's intervention in the price mechanism to address the causes of climate change.[20]
9708/43/O/N/23Pollution is caused when consumers or producers make decisions based on self-interest. This is a sign of market failure. With the help of a diagram, evaluate the extent to which government policies should rely upon market forces to address this market failure.[20]
9708/42/M/J/23The increased use of electric vehicles (EVs) is encouraged as part of governments' climate change policies because they create fewer negative externalities than diesel and petrol (gas) vehicles. Evaluate, with the help of a diagram(s), two policies that a government may use to encourage the use of EVs.[20]
9708/42/F/M/23The use of air travel leads to market failure caused by negative externalities. With the help of a diagram, assess the extent to which a government can intervene to correct this market failure.[20]
9708/42/F/M/21'Smoking cigarettes causes negative externalities and negative externalities cause market failure, which can only be solved by government intervention.' To what extent do you agree with this statement?[25]
One essay in the bank is set on 7.5 directly: whether larger firms always have lower average costs than smaller ones. You need the section well beyond that essay: every essay in 7.6 to 7.8 draws cost and revenue curves, uses the profit-maximising rule and argues about economies of scale and types of profit, and the efficiency essays in 7.3 rest on the same curves. Wage-determination essays in Unit 8 also use diminishing returns.
The 1 past-paper questions on this section
9708/41/M/J/26With the help of a diagram(s), assess the view that larger firms always have lower average costs than smaller firms.[20]
Learn the diagram for each structure in the short run and the long run, then its comparison with perfect competition: almost every essay here turns on it. Limit pricing, predatory pricing and price leadership are in 7.8, and cartels and mergers in 7.7.
The 16 past-paper questions on this section
9708/44/M/J/26Although firms in an oligopolistic market may be in competition with each other, they will find it advantageous to collude. With the help of a diagram or a pay-off matrix, evaluate this statement.[20]
9708/42/M/J/25Monopolies restrict output to raise prices to exploit consumers. With the help of a diagram, assess the extent to which a government should intervene in monopoly markets.[20]
9708/42/F/M/25Oligopolies are able to avoid price competition while maintaining supernormal profits in the long run. Evaluate this statement.[20]
9708/41/O/N/25The degree of competition that a firm experiences is determined only by the barriers to entry into its market. With the help of a diagram(s), evaluate this statement.[20]
9708/43/O/N/25With the help of a diagram, evaluate the impact on consumers and producers of an increase in market contestability.[20]
9708/44/O/N/25Subnormal and supernormal profits are only experienced in the short run and only by firms in perfect competition. With the help of diagrams, evaluate this statement.[20]
9708/43/O/N/23Evaluate the view that monopolistically competitive firms will always charge lower prices and operate more efficiently than a monopoly firm.[20]
9708/42/O/N/23The model of perfect competition is the ideal form of market structure because it is the most efficient. With the help of diagrams, evaluate this statement.[20]
9708/42/M/J/23Evaluate, with the help of a diagram(s) how total market demand and minimum efficient scale may determine the form of market structure in an industry.[20]
9708/42/F/M/23Some firms in oligopoly markets choose to collude rather than engage in price competition. This will lead to higher prices and a less efficient allocation of resources. Evaluate this statement.[20]
9708/41/M/J/20'A firm is fully aware of market conditions and its best rational interest would be achieved by pursuing the clearly defined objective of maximising profits.' Consider whether this statement has any merit in different market structures.[25]
9708/41/O/N/19'Competition is an essential element of an efficient market economy. If there is a monopoly then there is no competition. Monopolies exist in all economies and, therefore, all economies must be inefficient.' Discuss this opinion.[25]
9708/42/F/M/19'Governments should use whatever methods they can to regulate monopolies because they are inefficient.' Consider whether monopolies are always inefficient and what methods might be used by governments to regulate them.[25]
9708/42/M/J/18A businessman claimed it was difficult to make decisions as his business was subject to uncertainty and interdependence. Discuss the methods used by oligopoly firms to reduce uncertainty and interdependence and the extent to which these methods exploit the consumer.[25]
9708/42/O/N/16Explain what is meant by the 'equilibrium of a perfectly competitive firm' and consider the view that equilibrium is always achieved in perfect competition but never in a monopoly market.[25]
9708/41/M/J/16'Inacomplex modern economy there is no possibility of a perfect market system. A concentration of market power always results and does not serve the public interest' Do you agree with this opinion?[25]
9708/41/M/J/25The growth of a firm using a takeover is desirable because it enables consumers to benefit from lower prices and the firm to gain additional profits. Evaluate this statement.[20]
9708/41/O/N/24Evaluate the consequences for the price and output of a firm if it changes its objective from profit maximisation to sales maximisation as a response to the principal-agent problem.[20]
9708/41/O/N/23A government allows the merger of two large firms in the same industry. With the help of a diagram, evaluate the view that this merger should not have been allowed.[20]
9708/43/M/J/18In recent years the prices of many electronic products have fallen as sales have increased. Research to improve the products is expensive but there are large economies of scale in production. Discuss what is likely to happen to the costs, prices of products and market structure in industries where there are large economies of scale.[25]
9708/41/M/J/26Third-degree price discrimination benefits the firm but not its customers. With the help of a diagram, assess the consequences of third-degree price discrimination to both the firm and its customers.[20]
9708/41/M/J/23Some firms frequently use price discrimination. Assess the view that when this occurs, price discrimination will always benefit the producer at the expense of the consumer and society.[20]
These work in every section. Most evaluation marks in Unit 7 come from testing a model's assumptions against the market in the question, or from weighing one policy or market structure against a named alternative.
Model chains and evaluation points for each item are being added. Until then, check yourself against the chapter notes and the mark scheme for each question.
This is a free, unofficial Cambridge 9708 Economics revision resource and is not affiliated with Cambridge Assessment International Education.