2 Figure 2a shows the percentage market share of Indian telecommunications firms in

2015 based on the number of customers.

(ii) The
Indian telecommunications market is best described as '------------------~~ - i
,_
A a monopoly.
% OF INDIAN CUSTOMERS i1;
0 8 a free market.

0 C an oligopoly. /_
0 0 a niche market I
-
(111
... ) Explain the reasons for your answer to (a) (ii) with reference to the data in
Figure 2a.

3;
1-
BS~L 11 %
\\'.<\
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· · ; · · ···· · ··· · ~~ .t ~~t .\r.i~~.\.9.~ ~~~ ':1-)_~ ~j ':)\~~~ .

Vodafone Essar 19% · · ··· ··~t~t~~\:~~::;;~~:~-: :~~.:- I I

Idea Cellular 16%

1...
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MTNL, a sma11 telecommunications firm, has or ly a 1% share in th e Indian

Reliance 14%
telecommunications market.
I
Figure 2a (iv) Explain two reasons why smJII firms such as MTNL can exist alongside much

(a) (i) What is the combined market share of the four largest telecommunications larger firms.
firms shown in Figure 2a?
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 . d ·t ble finance to aid expansion.
Many small Indian firms struggle to fin sui a
· · the main limitation on the growth
(b) To what extent do you think a lack of finance IS
,, of small firms? (6)

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,-~5 hions, a small company, makes Banarasi silk saris in Varanasi Uttar- p
-
Adil fashions operates in the ' radesh,
I .

--
1'
I,

A primary sector.
Cl
B secondary sector.

Cl C tertiary sector. -
) Give one may
f ashions example
incur,of a fixed cost and one example of a variable
. cost that Adil
i2,

A fixed cost

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1016 the World Health Organisat" ( . - - - """

lfl t- · Th I d" ion WHO) rd t·t·
luted city. e n ran governme th en I red Delhi as thew Id'
When demand for Adil Fashions' silk saris increased in 2016, the firm increased P o . . f n as brou ht . or s most
stricter emissions or all new cars.
' g in new regulations to enforce
capacity. Table 2a shows the weekly output and average costs per sari in rupees

(Rs) for 2015 and 2016.

- [ __ . l Go
vernment regulation is the best w
ay to deal w·th ..

-~±- : :~:
ollution. Do you agree w ith this statem 7 I . externalities such as
2015 _ - 2~16 I P ent . Explain your answer.

Weekly output 9'\P~~'0~\i~\~ Q!)\1 t\-\,n~ .<thoJc l>-i!-~

-----· ··-Vt.\>l'f\o\o....~~ J . .... .. .. .. •·· .... .. . IJ'
I Average cost per sari (Rs) ··· · · · · · · · ··· · ····· · · · · · · .. ... k~~±~~~~-\~~()..,\W1•~ 1,0
Table 2a
.l~&:\~~ . 1-0 . .1 \i~\'.\'tk .~9®-.Ltl1)~~ . Ct\0.,/11 ltJ
(iii) Calculate the change in total costs in rupees (Rs) between 2015 and 2016.
You are advised to show your workings.
. .3:.~~~9~ . l~~~'-\:\S\~~xt,-\-~
(3)
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. - ·-
\~~Joo~~~* ¥\'v~
I In 2016 Adil Fashions sold saris for 3 500 rupees (Rs) each.
... . 1

(iv) Calculate the weekly profit in 2016 assuming that all saris are sold.
You are advised to show your workings.
(3)

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g_ues~on 2_= 30 ~ arks)

-
t 3 The economic growth rate in Chile 2002 - 2016
\
CHILE'S ECONOMIC GROWTH RATE

GDP
GROWTH 3
4 f-
RATE(%) J. _ _
2 I

1 - ---..-- -· -1-- ---- --- --r--

' 1
I
0

-1 t--
i
- L _____ _
-2 • I
2002 2004 2006 · 2008 2010 2012 2014 201 (
YEAR
GDP= Gross Domestic Product

(Source: http://www.ftsegloba Imarkets.com/ news/ chi le-can-one-

of-latin-a mericas-sta rs-return-to-form.html)

Figure 3a

(a) (i) What was Chile's economic growth rate in 2010?

(1)

,( N~ S ,n+.1
·······~~~~ ............. ......7 ... ..........

(ii) Using the information in Figure 3a, describe what happened to Chile's
economic growth rate between 2009 and 2016. (l )
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-
, ..... _ --
.) In 2009 Chile experienced
I • h'
e)(plain t 1s statement.
.
a recession w·
· 1th reference t
o the data in Figure 3a ,
-
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~r'.1,\wiA :t~
...........
.. ... ..
·· ······ ···· ··-• ·····
. ..... , .. ···•·••········ ..

1) Identify and explain two limitations of . G .. · ...... ·....

growth for Chile. usmg DP as a measure of economic

\ i~\

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....................... ..... ... .... .... ........ ................ ........ ......... ... ..

... ......................... .
 The Chilean government wants to return to the high economic growth rates of
2004 and 2005.

(v) To what extent is high economic growth always desi rable?

' I
' ' (6)

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 -
ne 2016 unemployment
• . •in Chile increas e d t o 6 8°/c M h
declining copper mmmg industry. . o. uc of this increase was in
1

Ii) fhiS is an example of

-
q

[] A cyclical unemployment.

, B structural unemployment. --
-
f/J
0 C voluntary unemployment.

0 D seasonal unemployment.

I
ii) Explain one possible financial cost to the Chilean economy of this increase in
121
unemployment. , , '
1

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. ,, .. _,. _., ____ , ____ , ____ , ____ _ _ ___ _ , __ , __ ___ , ______ , __ ,, ___________ , _ _ _ _, __ ..... ...... ........................................................ ----·--·········• •"''
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......................
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··· ·· ···· ··· .. ..... .
............. ... .. ........ .. . ····· ···· ···· ··•""'

I
I
I
- --------------
....._
ll#r''. ¼ ; ; ~%
-

(iii) Consider one policy the Chilean government could use to reduce
unemployment in the copper mining industry. How effective might this
policy be?
8,000 , - Cu,<ent A«ount on th,
- B,1-." 01P,ym,n1< - CMI, 2014
-
(S ) \ 6,000
--- 6,345

· ~~i':j~\~ ~sV\\\.',\ '. \\~~i~m ... I 4,ooo _

•···· ·:::1::~;~!~~~~:!:~
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1

1
(I J " ·
\ \ -Millions Oj
I -2 ooo .
,· , 1 [;:,:,-a,:~~, . __
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I 1- ~ .
----·-----
-3,818
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... .. ..~\\... .©'f\\'::\ . . ~ ···~ " " 9 ~ ~ · ··· Q·~ ··~ ·~ ·· ~M,\~~
ii Invisible balance Balance of trade

Figure 3b
\
... ... ... }.".:\.... . ~P'\l~····~tt8·· ~ too... ~•··· · ········ ··· · ·• ···
\
1(i) Using the information in Figure 3b, calculate the balance of payments on the
current account for Chile in 2014.
(l

\.
0 A -$2,527m

0 B +$10)63m

C +$2,527rn

0 D -$10,163rn
 .,.,_
- ----------~
.

- . -------
In late 2015 the rate of interest set by the Central Bank of Chile was increased to
----.:...
r11n
e the
tO
d IS
.GBthe
pound(£
)
currency of South
2012-2017.Africa. Figure 4a shows the
--- --· -
exchange
-
rate of rands
---.._ - iii
3.5%.
(ii) A rise in interest rates will always worsen the balance of payments• on the EXCHANGE RATE OF RANDS (R) TO THE GB POUND(£) 2012-2017
current account. Do you agree with this statement? Explain your reasons. 18
16) 16
14 15.9
rn,~hic .lQ-,\>.:M,.,\\\~~ .\tJ~\. '<~~..•· •· Number 12
15.0
13.8
of rands
Cl<.\~ J {'.~ fu.
10.9 10.7 11.S 12.S
... ~\\\)X\~ . .C9~~~ to the lO
GBpound 8
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4
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. .. Q~ ...~\\Y\k : '"\n\\ ~~)o. . °"' \~t."i'<.\ ..... 2012 2012 2013 2013 201 4 2014 20 15 2015 20 16 2016 2017
... ~ ~ ~ \ ~ ~ T o \ ~ \ ' 1 \ ~t9~0'ri~ Y.:::Y--. . ···· · ······ Jan June Jan June Jan June Jan June Jan June Jan

. ............
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N\ ~ ~ ' o L ~..~£>:Jh . J£ O'(J'f'e,(l .0\'.t:>...... . . . ... . ·----- · g f;g,ce 4a, complete the follow;, 9 ,,,~:::_•
f'
4

. ... ... .. .~ ·~ ···· 9Q'v-<9~ .......

, (i} Between June 2014 and Jan 2016 the value of the rand in terms of the
I
\:
GB pound
.. .?$.'.9~ . ...~.~~0:vi\~,:~,Jt:t\t~~~ . . .. . .
... \t)\q\\1~9~jto:.i\tl. . 1'1~~-1(\,~~\r-.Wv,~~i~~~....... . · ·· · · · I D A appreciated .
D B did not change.
1-
~\\~) \N9~ .~~A~Q\V,~~ C depreciated.

Q h ~ ~ ~9~-'c. ~D~"-~~ .~Jl\ib~~\.\ . (ii) In June 2016 the exchange rate was Rl 5 to £1. Calculate the price in rands of a \
Stella McCartney designer dress priced at £400. You are advised to show your
.
.... :\~~~)Y.)~IY\~~~ j1c,\\~:\~\\~.~ \ : ~ . workings. 11

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t\S 1~09 ~~tooa-O
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.
(Total for Question 3 == 30 marks) _,~-- 21

ruril over
-
 -
Between 2015 and 2016 exports from south Africa rose by 10% and imports
---G e 5out
10
---------..
h African government offers a wide range of incentive schemes to
Llrage foreign investment into the country.

State one financial incentive

-
-
remained constant. ' . h ,,and one
, non-financial
. .incen tive the South
(i) Afnc
. an government rn1g t o,,er to ,ore1gn companies.
(iii) Using Figure 4b, show the likely effect of this increase on the exchange rate
of the rand. Show the new equilibrium exchange rate ER 2 and new quantity
(3) Financial incentive
traded Q 2•

.\f\~\.tlt~\¾ ·
Exchange
SI
rate of
the rand Non-financial incentive

~9\A~~\N~~t~ ,

D
t:i, \ \_

0- \Qi Quantity of the rand

Figure 4b

South Africa has been a World Trade Organisation (WTO) member since

1 January 1995.
(4)
(b) Explain two functions of the WTO.

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I,
23 -
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 Unilever took advantage of the south African governmen~'s incentive schemes
and recently opened the first phase of a 600 million rand investment: its first ice
cream factory in Africa .

(ii) When multinational companies move into a country they always bring
benefits to that country. Do you agree with this statement? Explain your
reasons.

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 -
th Africa receives large amounts of dev e1opment aid.
i) What is meant by 'development aid'?

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ii) Explain two ways development aid encourages globalisation.

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In 2016 the unemployment rate in South Africa was - %.

(e) Protectionism rather than free trade is the beSt way to prevent unemployrn
rising in South Africa. Do you agree with this statement? Explain you r reaso~~-t

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