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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS

International General Certificate of Secondary Education

* 3 2 0 5 6 5 4 9 9 0 *

0455/33

ECONOMICS
Paper 3 Analysis and Critical Evaluation

October/November 2011
1 hour 30 minutes

Candidates answer on the Question Paper.

Additional Materials: Insert.
READ THESE INSTRUCTIONS FIRST
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
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Do not use staples, paper clips, highlighters, glue or correction fluid.
DO NOT WRITE IN ANY BARCODES.
Answer all questions.
At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.

For Examiners Use

1
2
Total

This document consists of 8 printed pages and 1 Insert.

DC (SJF) 35661/3
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The extract The growth of world tourism will be needed for this question.

(a) Which two government aims are referred to in the extract?

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(b) Using a demand and supply diagram, analyse how the change in the demand for air
travel mentioned in the extract would be expected to affect the market for air travel.

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(c) Explain the effect that the growth in tourism to India would be expected to have on
Indias:
(i)

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employment
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(ii)

wages.
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(d) Using Table 1, which country was the largest net earner from tourism in 2008?
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(e) Discuss what information you would need to decide whether the building of a new airport
would benefit the inhabitants of a city.
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The extract Bangladeshs garment (clothing) industry will be needed for this question.

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(a) What was the value of Bangladeshs exports of garments in 2009?

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(b) (i)

What is meant by a fixed cost?

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(ii)

Identify one example of a fixed cost from the extract.

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(c) Explain two reasons why Bangladeshs garment workers are low-paid.
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(d) (i)

What is meant by an industry being labour-intensive?

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(ii)

Explain two types of internal economies of scale from which a garment firm could
benefit.

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Question 2(e) is on the next page

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(e) Discuss what factors are likely to influence whether Bangladeshs garment industry will
sell more garments in the future.

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Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.
University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of
Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.

UCLES 2011

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