Additional Materials: Answer Booklet/Paper
9708/04
w w w e tr .X m eP e ap .c rs om
READ THESE INSTRUCTIONS FIRST If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet. Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer Question 1 and any two questions from Section B. 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. You may answer with reference to your own economy or other economies that you have studied where relevant to the question.
This document consists of 3 printed pages and 1 blank page.
SP (NH) S81006/2 © UCLES 2005
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2 Section A Answer this question.
1
Price of mobile telephone calls reduced by a third In 2003 it was stated in the UK that a decision of the High Court would result in the price of mobile (cell) phone calls being reduced by one third. It was said that the price cuts would save consumers up to £700 million over three years. The reductions applied to all phone calls from one mobile phone to another and from landlines to mobile phones. Three of the four UK mobile phone networks – Vodafone, T-mobile and Orange – had been fighting the imposition of the price cuts. They estimated that the decision would cost them between £1.5 billion and £2 billion and warned that the costs would be recovered by raising the price of the various styles of new phone handsets. A spokesperson for one of these phone companies said ‘People should not necessarily regard