Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
The goal of firm X is to make a minimum acceptable level of profit.
A monopoly firm makes only normal profit in the long run.
The diagram shows the average fixed cost (AFC), average variable cost (AVC) and average total cost (ATC) curves faced by three firms X, Y and Z. Dₓ...
When a firm increases all its inputs fourfold, its output increases threefold.
What represents the transfer earnings of the factor enterprise?
A country has a negative income tax. The curve NT in the diagram shows the country's initial tax schedule. [Diagram showing tax and income axes; l...
In which labour market diagram is the economic rent of workers greatest? [Four diagrams (A, B, C, D) showing wage and labour axes; supply (S_L) and...
Which statement about government intervention is correct?
The government introduces a minimum wage above the equilibrium market wage rate.
The diagram shows the market for a good that creates a negative externality in production and no positive externalities. The current level of consu...
The diagram shows a production possibility frontier, PPF₁. The economy is initially at point X. [Diagram showing capital goods and consumer goods a...
The information in the table is taken from a country's national income accounts. $ million consumer expenditure 250 investment expenditure 100 ...
Which source of income is not included in measuring real GDP?
Which adjustments to real GNP per head might make it a more reliable indicator when comparing standards of living in different countries?
What does the Kuznets curve represent?
In an open economy with a government sector, the marginal propensity to import is 0.3, the marginal propensity to tax is 0.3 and the marginal prope...
The information in the table is taken from a country's national income accounts. $ million national income 600 consumer spending 400 investment...
The central bank of a country creates cash to purchase government bonds from the commercial banks.
Which policy is likely to increase unemployment?
A government in a developed economy wishes to reduce cyclical unemployment.
An economy adopts an expansionary monetary policy to boost employment. A result of this policy is that the consumer price index rises at an acceler...
In country X the government aims to protect jobs.
Downturn in the growth of the world's leading economies In February 2016 there were dramatic changes in both financial and commodity markets across...
'Governments should use whatever methods they can to regulate monopolies because they are inefficient.' Consider whether monopolies are always inef...
'Keynesian policies to solve the problem of unemployment will not work because they will conflict with the attainment of other key macroeconomic ai...
The diagram shows the production possibility curve of a desert island economy where the inhabitants produce just two commodities, coconuts and fish...
A worker earns $40 per hour. Rather than work, she decides to visit a museum for three hours. The visit costs a total of $40. What is the opportuni...
A newspaper article contains the following comments. 1 The burden of tax should be shifted more to the highest earners. 2 It is in the public inter...
Which change in the way resources are allocated in an economy is consistent with moving from a planned economy to a market economy?
In which circumstance will the total expenditure by consumers on a good increase when its price increases?
When will a manufacturer’s ability to increase the quantity supplied in the short run be greater?
The diagram shows the market for strawberries. The original equilibrium position is X. What will be the new position following the failure of straw...
Good X is related to good Y. Incomes increase and the price of good Y falls. Which combination would give the greatest increase in demand for good X?
What must be correct when the free market for a good is in disequilibrium?
A power station burns waste to produce electricity. This also produces a by-product of fertiliser for farmers. What is the effect in the fertiliser...
The table shows the supply and demand for avocados in Mexico City. As a result of lower transport costs, supply rises by 60 kg at all prices. What ...
The diagram shows a demand curve for pineapples. What happens to the value of price elasticity of demand (PED) when there is a movement from point ...
Four firms produce furniture. The table shows the price elasticity of supply (PES) for each firm. If the price of furniture rises by 5% which firm ...
Which argument has often been used to justify the privatisation of state enterprises?
A government imposes a maximum rent in order to make rented housing more affordable. What is likely to be a long-run consequence if the maximum is ...
What would be categorised as direct government provision of goods and services?
Which type of tax is the 15% sales tax levied in South Africa?
What is an example of a transfer payment?
What will lead to an immediate improvement in the balance of payments deficit on current account?
An appreciation of the South African rand in the foreign exchange markets is most likely to assist the South African government achieve which polic...