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Question 1 Report
A youth theatre has a fixed weekly budget. It can hire either extra lighting equipment or more acting workshops, so choosing one use of its income means giving up another.
(a) What is meant by opportunity cost in this situation? [2]
Opportunity cost is the next best alternative forgone. [1] In this case, if the theatre uses its fixed budget to hire extra lighting equipment, the acting workshops it could instead have provided are forgone. [1]
The key word is next best: opportunity cost is not every possible thing the theatre cannot buy, but the most valuable alternative sacrificed.
Opportunity cost is the next best alternative forgone. [1] In this case, if the theatre uses its fixed budget to hire extra lighting equipment, the acting workshops it could instead have provided are forgone. [1]
The key word is next best: opportunity cost is not every possible thing the theatre cannot buy, but the most valuable alternative sacrificed.
Question 2 Report
A regional government is choosing between a new flood barrier and a reduction in business taxes. Both policies use the same limited public spending budget.
(a) What is meant by opportunity cost in this decision? [1]
(b) Which government objective could a flood barrier support besides economic growth? [1]
(c) Explain why the tax reduction may increase investment by firms. [1]
(a) Opportunity cost is the next best alternative forgone. [1] If the government chooses the flood barrier, the opportunity cost is the tax reduction, or the benefits that reduction would have provided.
(b) A flood barrier can support environmental protection, or sustainable development, as well as economic growth. [1]
(c) Lower business taxes increase retained profit or the expected return from investment, making investment more attractive to firms. [1]
(a) Opportunity cost is the next best alternative forgone. [1] If the government chooses the flood barrier, the opportunity cost is the tax reduction, or the benefits that reduction would have provided.
(b) A flood barrier can support environmental protection, or sustainable development, as well as economic growth. [1]
(c) Lower business taxes increase retained profit or the expected return from investment, making investment more attractive to firms. [1]
Question 3 Report
Read the case study below. In 2022, StreamSphere held 58% of a country's video-streaming subscriptions. It bought a small production studio and made several popular programmes exclusive to its platform. Two rivals allege that StreamSphere is using its market power to raise subscription rates. The competition authority is considering action.
(a) State two indicators that StreamSphere may have market power. [2]
(b) Explain how exclusive programmes can act as a barrier to entry. [3]
(c) Analyse two possible effects on consumers if StreamSphere increases its subscription rate. [4]
(d) Assess whether the competition authority should prevent StreamSphere from buying further production studios. [6]
(a) Two indicators of market power are:
(b) Exclusive programmes differentiate StreamSphere's service and make it attractive to consumers. [1] A new entrant would need to spend heavily to obtain rights to comparable content or create its own popular programmes. [1] This raises start-up costs, making entry less likely. [1]
(c) A higher subscription rate raises consumers' spending on streaming and reduces their real disposable income. [1] They may consequently reduce spending on other goods and services. [1] Some consumers may cancel or switch to rivals. [1] However, consumers who value the exclusive programmes may remain subscribed despite the increase, showing that their alternatives are limited. [1]
(d) Preventing further purchases could be justified because acquiring more studios may increase concentration and make entry harder for rivals. [1] Control of more exclusive content could allow StreamSphere to raise rates, reduce choice, or lower service quality. [1]
However, further studios may create economies of scale: StreamSphere could fund better programmes and lower average costs. [1] It also faces competition from existing streaming rivals and other entertainment services. [1]
A justified conclusion is that the authority should prevent a purchase if it would substantially reduce competition and consumer harm is likely to exceed efficiency gains. [2] It could allow a purchase with conditions if the gains, such as better content or lower costs, are passed on to consumers. The decision should depend on the likely effect on competition and consumers, not solely on StreamSphere's current size.
(a) Two indicators of market power are:
(b) Exclusive programmes differentiate StreamSphere's service and make it attractive to consumers. [1] A new entrant would need to spend heavily to obtain rights to comparable content or create its own popular programmes. [1] This raises start-up costs, making entry less likely. [1]
(c) A higher subscription rate raises consumers' spending on streaming and reduces their real disposable income. [1] They may consequently reduce spending on other goods and services. [1] Some consumers may cancel or switch to rivals. [1] However, consumers who value the exclusive programmes may remain subscribed despite the increase, showing that their alternatives are limited. [1]
(d) Preventing further purchases could be justified because acquiring more studios may increase concentration and make entry harder for rivals. [1] Control of more exclusive content could allow StreamSphere to raise rates, reduce choice, or lower service quality. [1]
However, further studios may create economies of scale: StreamSphere could fund better programmes and lower average costs. [1] It also faces competition from existing streaming rivals and other entertainment services. [1]
A justified conclusion is that the authority should prevent a purchase if it would substantially reduce competition and consumer harm is likely to exceed efficiency gains. [2] It could allow a purchase with conditions if the gains, such as better content or lower costs, are passed on to consumers. The decision should depend on the likely effect on competition and consumers, not solely on StreamSphere's current size.
Question 4 Report
A market inspector finds that a café adds a 12% sales tax to meals but a separate 4% tax to sugary drinks. Customers ask why the taxes are included in the final price.
(a) State which type of tax is charged on spending by consumers. [1]
(b) Explain why the sugary-drink tax may be used by the government. [1]
(a) A tax charged on consumer spending is an indirect tax. [1] It is added to the price of goods or services, rather than being taken directly from a person's income.
(b) The sugary-drink tax may be used to discourage consumption of sugary drinks, helping to reduce health problems and possible healthcare costs. [1] Raising government revenue is also an acceptable reason.
(a) A tax charged on consumer spending is an indirect tax. [1] It is added to the price of goods or services, rather than being taken directly from a person's income.
(b) The sugary-drink tax may be used to discourage consumption of sugary drinks, helping to reduce health problems and possible healthcare costs. [1] Raising government revenue is also an acceptable reason.
Question 5 Report
A furniture maker is deciding whether to expand production. It expects to sell 500 extra chairs at $80 each. The extra wood, wages and delivery costs will be $31 000.
Calculate the expected profit from the extra output. [2]
Explain one reason why the actual profit may be lower than expected. [2]
(a) Profit is total revenue minus total cost.
\[\text{Total revenue}=500\times\$80=\$40\,000\]
\[\text{Profit}=\$40\,000-\$31\,000=\$9000\]
The expected profit is \$9000. [2]
(b) Actual profit may be lower if fewer chairs are sold than forecast. This reduces total revenue; if costs do not fall by the same amount, the difference between revenue and cost, profit, becomes smaller. [2]
In an examination, give both the change and its consequence: fewer sales \(\rightarrow\) lower revenue \(\rightarrow\) lower profit.
(a) Profit is total revenue minus total cost.
\[\text{Total revenue}=500\times\$80=\$40\,000\]
\[\text{Profit}=\$40\,000-\$31\,000=\$9000\]
The expected profit is \$9000. [2]
(b) Actual profit may be lower if fewer chairs are sold than forecast. This reduces total revenue; if costs do not fall by the same amount, the difference between revenue and cost, profit, becomes smaller. [2]
In an examination, give both the change and its consequence: fewer sales \(\rightarrow\) lower revenue \(\rightarrow\) lower profit.
Question 6 Report
A farm shop observes that the price of its pumpkins falls after several nearby farms begin selling pumpkins. Consumer income and demand for pumpkins do not change.
(a) State the type of change in supply that has occurred. [1]
(a) There has been an increase in supply, shown by a rightward shift of the supply curve. [1]
More nearby farms are selling pumpkins. At each possible price, more pumpkins are offered for sale. This is a supply shift, rather than a movement along one supply curve. With demand unchanged, the increased supply puts downward pressure on price.
(a) There has been an increase in supply, shown by a rightward shift of the supply curve. [1]
More nearby farms are selling pumpkins. At each possible price, more pumpkins are offered for sale. This is a supply shift, rather than a movement along one supply curve. With demand unchanged, the increased supply puts downward pressure on price.
Question 7 Report
Fig. 1 shows a simplified circular flow for a town economy. Household spending has decreased because inflation reduced real income.
(a) What happens to firms' revenue when household spending falls? [1]
(b) Explain one possible effect of lower firm revenue on the government's unemployment objective. [2]
(a) Firms' revenue decreases when household spending falls. [1] In the circular flow, household spending is revenue received by firms.
(b) With less revenue, firms may reduce output or cut costs. [1] They may dismiss workers or recruit fewer workers, increasing unemployment and making the government's unemployment objective harder to achieve. [1]
(a) Firms' revenue decreases when household spending falls. [1] In the circular flow, household spending is revenue received by firms.
(b) With less revenue, firms may reduce output or cut costs. [1] They may dismiss workers or recruit fewer workers, increasing unemployment and making the government's unemployment objective harder to achieve. [1]
Question 8 Report
A government plans temporary protection for a new domestic producer of electric buses. Imported buses are cheaper because overseas firms have produced them for many years. Local taxpayers may have to fund a production subsidy.
(a) Explain the infant-industry argument for protection. [2]
(b) Use the information to explain one cost of the policy for the government or consumers. [2]
(a) The infant-industry argument is that a new domestic industry may initially have high average costs because it has not yet gained experience or produced at a large scale. [1] Temporary protection from cheaper established imports gives it time to learn, expand output, lower costs and become competitive. [1]
(b) If the government subsidises the producer, government spending rises. [1] This may require higher taxation, more borrowing, or less spending on other services, so there is an opportunity cost. [1]
Alternatively, import protection can raise the price of buses, reducing consumers' or taxpayers' real income. The policy is justified only if the industry can eventually compete without continued support.
(a) The infant-industry argument is that a new domestic industry may initially have high average costs because it has not yet gained experience or produced at a large scale. [1] Temporary protection from cheaper established imports gives it time to learn, expand output, lower costs and become competitive. [1]
(b) If the government subsidises the producer, government spending rises. [1] This may require higher taxation, more borrowing, or less spending on other services, so there is an opportunity cost. [1]
Alternatively, import protection can raise the price of buses, reducing consumers' or taxpayers' real income. The policy is justified only if the industry can eventually compete without continued support.
Question 9 Report
A district has repeated flooding after heavy rain. Engineers propose a flood barrier that would protect homes, shops and a railway line, including properties whose owners might refuse to contribute to its cost.
(a) State why flood protection can be non-excludable. [1]
(b) Explain why private provision of the barrier may be insufficient. [2]
(c) Use government spending to show one way the barrier could be financed. [1]
(a) Flood protection is non-excludable because it is difficult or impossible to prevent non-payers in the protected area from receiving the benefit [1]. A barrier protecting one property will often protect nearby properties too.
(b) Property owners may wait for others to pay while still expecting protection [1]. This free riding makes it difficult for a private provider to collect enough revenue, so private provision may be below the socially efficient quantity [1].
(c) Government could finance the barrier through general taxation [1]. Local taxes or a compulsory levy are also acceptable because compulsory payment prevents free riding.
(a) Flood protection is non-excludable because it is difficult or impossible to prevent non-payers in the protected area from receiving the benefit [1]. A barrier protecting one property will often protect nearby properties too.
(b) Property owners may wait for others to pay while still expecting protection [1]. This free riding makes it difficult for a private provider to collect enough revenue, so private provision may be below the socially efficient quantity [1].
(c) Government could finance the barrier through general taxation [1]. Local taxes or a compulsory levy are also acceptable because compulsory payment prevents free riding.
Question 10 Report
Table 1 shows selected components of gross domestic product in Arvania in 2022 and 2023.
| Component | 2022 ($bn) | 2023 ($bn) |
|---|---|---|
| Consumer spending | 210 | 218 |
| Investment | 64 | 70 |
| Government spending | 82 | 86 |
| Exports | 51 | 55 |
| Imports | 57 | 63 |
(a) Calculate GDP in 2023 using GDP = C + I + G + X - M. [2]
(b) State whether Arvania's trade balance improved or worsened between 2022 and 2023. [1]
(c) Explain one way increased government spending could increase economic growth. [1]
(a) Use \(GDP=C+I+G+X-M\):
\[218+70+86+55-63=366\]
Arvania's GDP in 2023 was \($366\text{ bn}\). [2]
(b) The trade balance worsened. In 2022, \(51-57=-6\), a \($6\text{ bn}\) deficit; in 2023, \(55-63=-8\), a \($8\text{ bn}\) deficit. [1]
(c) Higher government spending raises aggregate demand for goods and services. Firms may increase output, causing real GDP and economic growth to increase. [1]
(a) Use \(GDP=C+I+G+X-M\):
\[218+70+86+55-63=366\]
Arvania's GDP in 2023 was \($366\text{ bn}\). [2]
(b) The trade balance worsened. In 2022, \(51-57=-6\), a \($6\text{ bn}\) deficit; in 2023, \(55-63=-8\), a \($8\text{ bn}\) deficit. [1]
(c) Higher government spending raises aggregate demand for goods and services. Firms may increase output, causing real GDP and economic growth to increase. [1]
Question 11 Report
Table 1 shows the annual government spending of two districts. District A has a higher unemployment rate and is considering which services should receive increased funding.
(a) Which district has the larger budget deficit? [1]
(b) Explain one opportunity cost of District A increasing spending on job-training courses. [1]
(a) District A has the larger budget deficit, equal to \(\$8\text{ million}\). [1]
(b) If District A increases spending on job-training courses, those resources cannot be used for another service, such as road repairs or health care, or for reducing taxes. [1] The best alternative use forgone is the opportunity cost.
(a) District A has the larger budget deficit, equal to \(\$8\text{ million}\). [1]
(b) If District A increases spending on job-training courses, those resources cannot be used for another service, such as road repairs or health care, or for reducing taxes. [1] The best alternative use forgone is the opportunity cost.
Question 12 Report
Fig. 1 shows the production possibility curve for a coastal economy producing fishing boats and tonnes of processed fish. Point A is inside the curve.
What does point A show about the use of resources in this economy? [1]
Explain one possible reason why production is at point A. [2]
(a) Point A shows that resources are unemployed or underused, so production is inefficient. [1]
A point inside a production possibility curve means the economy could produce more of at least one good without reducing production of the other. It is therefore below its maximum possible output.
(b) One possible reason is unemployment. [2]
If workers are unemployed, and capital such as machinery is not fully used, the economy cannot produce its potential output of fishing boats and processed fish. This places production inside the curve at A.
(a) Point A shows that resources are unemployed or underused, so production is inefficient. [1]
A point inside a production possibility curve means the economy could produce more of at least one good without reducing production of the other. It is therefore below its maximum possible output.
(b) One possible reason is unemployment. [2]
If workers are unemployed, and capital such as machinery is not fully used, the economy cannot produce its potential output of fishing boats and processed fish. This places production inside the curve at A.
Question 13 Report
Table 1 shows the results of a town health survey after a tax was placed on sugary drinks. The tax revenue was used for government spending on school sports facilities.
| Year | Average price per 500 ml drink ($) | Drinks sold per week | Tax revenue per week ($) |
|---|---|---|---|
| Before tax | 1.50 | 24 000 | 0 |
| After tax | 1.80 | 19 000 | 5 700 |
(a) Calculate the tax per drink after the policy. [1]
(b) Explain why sugary drinks may create a negative externality of consumption. [2]
(c) Use Table 1 to explain one reason why the tax may improve economic welfare. [3]
(a) Tax per drink is calculated using tax revenue divided by the number of drinks sold:
\[\frac{\$5700}{19\,000}=\$0.30\text{ per drink}\]
$0.30 per drink [1].
(b) Sugary drinks can create a negative externality of consumption because consumers may not bear all the health-related costs of their consumption [1]. For example, taxpayers may fund treatment through the health system for diet-related illnesses [1]. This is a cost imposed on third parties.
(c) Sales fell from 24 000 to 19 000 drinks per week [1]. Therefore consumption of this demerit good decreased [1], which can reduce health-related external costs. In addition, the $5700 weekly tax revenue can fund school sports facilities, creating potential health benefits [1]. Both the lower consumption and the use of revenue can improve economic welfare.
(a) Tax per drink is calculated using tax revenue divided by the number of drinks sold:
\[\frac{\$5700}{19\,000}=\$0.30\text{ per drink}\]
$0.30 per drink [1].
(b) Sugary drinks can create a negative externality of consumption because consumers may not bear all the health-related costs of their consumption [1]. For example, taxpayers may fund treatment through the health system for diet-related illnesses [1]. This is a cost imposed on third parties.
(c) Sales fell from 24 000 to 19 000 drinks per week [1]. Therefore consumption of this demerit good decreased [1], which can reduce health-related external costs. In addition, the $5700 weekly tax revenue can fund school sports facilities, creating potential health benefits [1]. Both the lower consumption and the use of revenue can improve economic welfare.
Question 14 Report
Table 1 shows the annual interest rates offered on two savings products by a credit union. Lina has 5000 dinars and does not need the money for two years.
(a) Which account offers the higher rate of interest? [1]
(b) Calculate the interest Lina would receive in one year if she put 5000 dinars in the fixed account. [2]
(a) The supplied question refers to rates in Table 1, but the table is absent from the provided data. According to the mark scheme, the two-year fixed account offers the higher interest rate. [1]
(b) The fixed-account rate is \(5\%\). Calculate one year’s interest:
\[\frac{5}{100}\times5000\text{ dinars}=250\text{ dinars}\]
Lina would receive 250 dinars interest in one year. [2]
(a) The supplied question refers to rates in Table 1, but the table is absent from the provided data. According to the mark scheme, the two-year fixed account offers the higher interest rate. [1]
(b) The fixed-account rate is \(5\%\). Calculate one year’s interest:
\[\frac{5}{100}\times5000\text{ dinars}=250\text{ dinars}\]
Lina would receive 250 dinars interest in one year. [2]
Question 15 Report
Fig. 1 shows the maximum daily production combinations of boats and medical kits in two economies before they trade. Point A is a possible output combination for Coastland.
(a) What does a point inside Coastland's production possibility curve, such as A, show? [2]
(b) Explain why a country may specialise according to comparative advantage rather than absolute advantage. [3]
(c) Assess whether international trade will always increase the living standards of workers in both economies. [4]
(a) Point A is inside Coastland’s production possibility curve, so output is below the maximum possible [1]. This means resources are unemployed or used inefficiently [1]. A point on the curve would show full and efficient use of available resources.
(b) Comparative advantage depends on lower opportunity cost [1], not simply producing the largest absolute amount. Each economy can concentrate resources on the good it sacrifices least to produce [1]. Through trade, this can increase total output and the range of goods both economies can consume [1].
(c) Trade can lower prices, increase consumer choice, and raise export employment or income [1]. Specialisation can also raise productivity and economic growth [1]. However, import competition may cause unemployment in declining domestic industries [1]. Therefore trade does not automatically improve every worker’s living standards: the outcome depends on worker mobility, retraining, wages, and how the gains from trade are distributed [1].
(a) Point A is inside Coastland’s production possibility curve, so output is below the maximum possible [1]. This means resources are unemployed or used inefficiently [1]. A point on the curve would show full and efficient use of available resources.
(b) Comparative advantage depends on lower opportunity cost [1], not simply producing the largest absolute amount. Each economy can concentrate resources on the good it sacrifices least to produce [1]. Through trade, this can increase total output and the range of goods both economies can consume [1].
(c) Trade can lower prices, increase consumer choice, and raise export employment or income [1]. Specialisation can also raise productivity and economic growth [1]. However, import competition may cause unemployment in declining domestic industries [1]. Therefore trade does not automatically improve every worker’s living standards: the outcome depends on worker mobility, retraining, wages, and how the gains from trade are distributed [1].
Question 16 Report
Table 1 shows trade data for an economy that imports fuel and exports software services.
| Year | Exports ($bn) | Imports ($bn) |
|---|---|---|
| 2021 | 48 | 52 |
| 2022 | 55 | 68 |
| 2023 | 63 | 61 |
(a) Which year had a trade surplus? [1]
(b) Show the trade balance in 2022. [1]
(a) 2023 had a trade surplus, because exports of $63 billion exceeded imports of $61 billion. [1]
(b) The 2022 trade balance was:
\[\$55\text{ billion}-\$68\text{ billion}=-\$13\text{ billion}\]
This is a $13 billion trade deficit. [1]
(a) 2023 had a trade surplus, because exports of $63 billion exceeded imports of $61 billion. [1]
(b) The 2022 trade balance was:
\[\$55\text{ billion}-\$68\text{ billion}=-\$13\text{ billion}\]
This is a $13 billion trade deficit. [1]
Question 17 Report
Table 1 shows labour-market information collected by the statistics office of Elmar in June 2022.
| Group | Number of people (thousand) |
|---|---|
| Employed | 1 840 |
| Unemployed and seeking work | 160 |
| Retired or not seeking work | 500 |
(a) What is meant by unemployment? [1]
(b) Use Table 1 to state the labour force. [1]
(a) Unemployment refers to people who are able and willing to work, are actively seeking work, but do not have a job. [1]
(b) The labour force includes people employed and people unemployed who are seeking work. It excludes retired people and those not seeking work.
\[1840\text{ thousand}+160\text{ thousand}=2000\text{ thousand}\]
The labour force is 2000 thousand people, or 2 million people. [1]
(a) Unemployment refers to people who are able and willing to work, are actively seeking work, but do not have a job. [1]
(b) The labour force includes people employed and people unemployed who are seeking work. It excludes retired people and those not seeking work.
\[1840\text{ thousand}+160\text{ thousand}=2000\text{ thousand}\]
The labour force is 2000 thousand people, or 2 million people. [1]
Question 18 Report
Read the information below about Valora, a cocoa-exporting economy. In 2022, its export-price index rose from 100 to 130 after global cocoa demand increased. Its import-price index rose from 100 to 110 because fuel costs also increased. The government wants to use extra export income for economic growth.
(a) Calculate Valora's terms-of-trade index in 2022, using: export-price index / import-price index x 100. [3]
(b) Explain what the calculated figure means for Valora's purchasing power from exports. [2]
(c) Assess whether higher cocoa export prices will necessarily improve living standards in Valora. [3]
(a) Terms of trade compare export prices with import prices:
\[\frac{\text{export-price index}}{\text{import-price index}}\times100=\frac{130}{110}\times100=118.2\]
The terms-of-trade index is 118.2, or 118 when rounded. [3]
(b) The terms of trade have improved because export prices rose more than import prices. [1] Therefore, a given quantity or value of Valora's cocoa exports can buy relatively more imports than before. This is an increase in purchasing power from exports. [1]
(c) Higher cocoa prices can increase the income of exporters, government tax revenue and foreign-currency earnings. [1] These gains may finance public services, investment, or imports that support economic growth and living standards. [1] However, improved living standards are not certain: income may mainly go to large producers, cocoa prices may later fall, or inflation and dependence on imports may limit gains for households. [1]
The terms of trade measure relative prices, not how equally export income is shared.
(a) Terms of trade compare export prices with import prices:
\[\frac{\text{export-price index}}{\text{import-price index}}\times100=\frac{130}{110}\times100=118.2\]
The terms-of-trade index is 118.2, or 118 when rounded. [3]
(b) The terms of trade have improved because export prices rose more than import prices. [1] Therefore, a given quantity or value of Valora's cocoa exports can buy relatively more imports than before. This is an increase in purchasing power from exports. [1]
(c) Higher cocoa prices can increase the income of exporters, government tax revenue and foreign-currency earnings. [1] These gains may finance public services, investment, or imports that support economic growth and living standards. [1] However, improved living standards are not certain: income may mainly go to large producers, cocoa prices may later fall, or inflation and dependence on imports may limit gains for households. [1]
The terms of trade measure relative prices, not how equally export income is shared.
Question 19 Report
Fig. 1 shows an index of the value of the zed against a basket of foreign currencies. A hotel chain imports furniture but receives income from overseas tourists.
(a) State the percentage decrease in the exchange-rate index from 2021 to 2023. [2]
(b) Explain one likely effect on the hotel's income from overseas tourists, measured in zeds. [2]
(a) The index falls from 120 in 2021 to 100 in 2023.
Decrease: \(120-100=20\). [1]
Percentage decrease: \(\frac{20}{120}\times100=16.7\%\), so an answer of 16.7% decrease or 17% decrease is accepted. [1]
(b) The falling index means that the zed has depreciated. Overseas tourists need less foreign currency to obtain zeds, so a hotel stay in the country becomes cheaper for them. This may attract more overseas tourists, causing the hotel's income measured in zeds to increase. [2]
Do not confuse this with the effect on imported furniture: depreciation makes imports more expensive in zeds, but the question asks about income from overseas tourists.
(a) The index falls from 120 in 2021 to 100 in 2023.
Decrease: \(120-100=20\). [1]
Percentage decrease: \(\frac{20}{120}\times100=16.7\%\), so an answer of 16.7% decrease or 17% decrease is accepted. [1]
(b) The falling index means that the zed has depreciated. Overseas tourists need less foreign currency to obtain zeds, so a hotel stay in the country becomes cheaper for them. This may attract more overseas tourists, causing the hotel's income measured in zeds to increase. [2]
Do not confuse this with the effect on imported furniture: depreciation makes imports more expensive in zeds, but the question asks about income from overseas tourists.
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