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Which of the following actions would be of benefit to the environment?
 
Yes 
No 
Using renewable energy sources 


Burying non-biodegradable waste on site 


Minimising costs 


Buying recycled paper


Encouraging staff not to print emails 


(4 marks)
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PRACTICE QUESTION AND ANSWER BANK 
 
516
 
17 
In the diagram below, point 5 represents equilibrium. If the government starts to pay a cash 
subsidy to producers of the commodity, what will the new equilibrium be? 

Point 
2 

Point 
4 

Point 
6 

Point 
8 
(2 marks)
18 
Surpluses will be enjoyed by some suppliers and some consumers even when the market clears 
under perfect competition. 
Match the correct labels to the boxes on this diagram. 
Pr
ic
e
Quantity
4
5
3
2
1
Labels: 
A Equilibrium 
price 
B Consumer 
surplus 
C Market 
supply 
D Market 
demand 
E Producer 
surplus 
(2 marks)
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PRACTICE QUESTION BANK 
 
517 
19 
If the cost of milk rises, and milk is a major ingredient in yoghurt, then the: 

Demand curve for yoghurt shifts to the left 

Supply for yoghurt curve shifts to the left 

Supply curve for yoghurt shifts to the right 

Demand and supply curves for yoghurt both shift to the right 
(2 marks)
20