Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
The table gives the Terms of Trade Index in 2010 and 2013 for Japan and Venezuela. [Table] Which combination of statements is a correct interpretat...
The US President signed a trade agreement which allowed more duty-free access to the US market for Latin American and Caribbean countries. Who migh...
Which statement is not a valid reason why a country may impose protectionist measures?
A government wants to operate a tighter monetary policy. What would it increase?
A country has a large current account deficit. Its government decides to devalue its currency. In which circumstance would such a measure reduce th...
The diagram shows four possible aggregate supply curves and an equilibrium point X. A government employs deflationary fiscal policy in order to red...
Concern in Vietnam over trade with China Table 1: The Value of Vietnam's Trade in Goods with Selected Trading Partners: January–July 2014 | | Unit...
What might help achieve allocative efficiency?
In 2015, a company electrified the main railway line between two cities in order to decrease the journey time. The work was noisy, expensive and to...
Which measure is specifically designed to reduce divergences between private and social costs?
Which is an internal economy of scale?
The diagram shows the position of a profit-maximising firm in a perfectly competitive industry. [Figure showing price/cost vs output, MC, AC, AR=MR...
When a firm doubles its variable inputs, its fixed inputs are unchanged and output less than doubles. What does this illustrate?
Which practices would be classified as price discrimination?
To maximise total revenue, up to which point should a monopolist increase output?
A firm is operating in perfect competition. What will be the effect on the firm's revenue if it increases its output by 5%?
A firm successfully engages in a policy of predatory pricing. What will happen to the prices charged by the firm in the short run and in the long run?
What will act as a barrier to collusion between firms?
The diagram represents different combinations of good X and good Y. [Figure showing good Y vs good X, with points U, T, V, W] A consumer prefers mo...
A consumer demands two goods, X and Y. The indifference curve diagram shows the effect of a change in the price of one of these goods on the consum...
What could prevent a market failure?
The diagram shows the Gini coefficient for four countries between 1975 and 2010. [Figure of Gini coefficient for Brazil, Mexico, India and China 19...
Extra fishing boats start to operate from a local harbour which depends on fishing for its main income. Which action by the local authority is an e...
What is the main disadvantage of government regulation aimed at restricting the profits earned in a monopolistic industry?
What is an advantage of a 'creation of property rights' solution to externalities resulting from river pollution?
In the UK in 2015 the average wage was £26500 a year. At the same time, certain footballers were earning more than £150000 a week. Which aspect of ...
What is the most effective policy a government could introduce to reduce frictional unemployment?
Which combination is usually found in the least developed countries?
The diagram shows selected US labour statistics from 2001 to 2014. [Figure of US labour statistics from 2001 to 2014 including net new jobs and emp...
Under conditions of full employment, the Quantity Theory of Money suggests that (other things being equal) the effect of an increase in the velocit...
In a closed economy with neither government expenditure nor taxation, the initial income is $2000 million. All savings are carried out by consumers...
Which combination of factors is most likely to result in economic growth?
A country's real national income per head increases. What could explain why this might be accompanied by a fall in households' standard of living?
A director becomes redundant as the result of a company merger. His salary was $80 000. He is entitled to an annual private pension of $30 000. In ...
Which cause of economic growth would involve the least cost for present and future generations of a country's population?
What would encourage industrial expansion in a region of high unemployment?
A government currently has a balanced budget. It is considering the possible variations in tax revenue and government expenditure shown. options ta...
The power of Finance Ministers to make a difference to an economy is exaggerated. Political parties would argue that Finance Ministers have the abi...
Answer two questions.
Which statement about economics is not correct?
A farmer is able to grow three crops, X, Y and Z, on his land. The farmer decides to grow at most two crops in any year. The table shows six possib...
The diagram shows a production possibility curve for an economy that produces capital goods and consumer goods. [Figure 3.1] Why is the production ...
The Bureau of Alcohol, Tobacco, Firearms and Explosives is a branch of the United States Government which regulates markets. What does its name imp...
What is treated as a variable in constructing a market demand curve?
The diagram shows how the quantity demanded of four goods changes as income changes. Which good has an income elasticity of demand which is always +1?
The table shows three different prices and quantities supplied per week of two products, X and Y. price of X ($) 10 15 20 quantity supplied of X ...
In 2016 car drivers bought more fuel (gas) because the price of oil from which it was made had fallen. Which diagram represents this change in the ...