Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
The diagrams show the effect of a change in the market for good X on the market for good Y. What is the most likely relationship between the two go...
To improve its financial position, a government decided to reduce expenditure on investment in the public sector. There was not a fall in economic ...
What are the effects of a government imposing a maximum price below the equilibrium price? [Figure 15]
The National Library Board of Singapore is a public sector organisation that finances and manages the state libraries. What is the most likely reas...
Three types of tax are listed. • a sales tax (VAT) on fuel • a specific tax of 10% on cigarettes • the percentage of income tax on individual earni...
The bus fare in a rural area is $5 per journey. The government decides to improve local transport by giving bus firms a subsidy of $2 per journey. ...
The diagram shows the annual consumer prices index for Japan over the years 1990–2010 inclusive. In which period did Japan experience both inflatio...
A government removes its quota on imported laptops. Assuming a normal demand curve and upward-sloping supply curve for laptops, what are the likely...
The terms of trade index for Mauritius fell from 111.2 in the first quarter of 2018 to 106.1 in the second quarter. Which combination could have pr...
From the initial position of equilibrium shown, there is an increase in government expenditure on goods and services and simultaneously an increase...
The diagram shows a shift in an economy's aggregate demand curve from AD₁ to AD₂. What could not be a cause of the shift? [Figure 23]
Which item is not included in the current account on the balance of payments statement?
The prices of a country's exports rise by 5% while the prices of its imports fall by 5%. What will definitely improve in the country as a result of...
What is not a form of protectionism?
Two countries, X and Y, produce food and drink. The table shows how many hours it takes them to produce one unit of each. What will be the result i...
'Reducing the exchange rate helps to decrease a country's balance of payments deficit because it makes imports more expensive and exports cheaper.'...
An increase in which variable is a contractionary monetary policy?
What are government monetary policies that would be the most effective in a global recession?
A good is most suitable to be provided by the market if it is
What is the definition of long run?
The table states the consequences of two macroeconomic policies. What correctly identifies whether the statements are normative or positive? [Figur...
The diagram shows the production possibility curve for wheat and corn. [Figure: Production Possibility Curve]
A supply curve is represented by the equation quantity supplied = 10 + 5P where P = the price of the product. Which price rise would cause the quan...
Which diagram illustrates unitary elasticity of supply? [Figure: Four diagrams A, B, C, D, showing different supply curves]
In which case is the price system not a possible method of allocating resources?
A sports stadium has two prices of seats. The cheaper seats are $10 and the more expensive seats are $20. When the prices of all seats are increase...
Which statement correctly describes the shape of the demand curve for a normal good?
Why does the basic economic problem of scarcity apply to both the rich and the poor?
Butter and buttermilk are goods in joint supply. Supply curves in both markets slope upwards to the right. Health concerns cause people to reduce t...
The diagram shows the demand and supply of a good. [Figure: standard supply and demand diagram with areas X and Y]
Why do some local governments subsidise the provision of bicycles to encourage their use?
The table shows Gini coefficients for both income and wealth in two countries. [Figure: table with Gini coefficients]
The table shows selected information from a country's national accounts. [Figure: table of national accounts data]
The graphs show the changes in the exchange rates of the pound sterling (£) against the US dollar (US$) and the euro (€) between the years 2001 and...
Which statement about the circular flow of income is correct?
The graph shows a country's average annual inflation rate over a five-year period. [Figure: line graph of average annual inflation rate]
In an economy, wages and prices are both rising but wages are rising faster. Which features are likely to exist in this economy?
The diagram shows the aggregate demand (AD) and long-run aggregate supply (LRAS) curves for a country. X is the original equilibrium position. In o...
What is most likely to cause a rise in a country's exchange rate?
Which change affecting the foreign exchange market for the US$ would be most likely to result in a shift to the right of the demand curve and a mov...
What can be best understood from a knowledge of a country's terms of trade?
A company produces goods for export only. Which change could cause a rise in the price of its goods while the quantity sold is unchanged?
Under which current conditions will supply-side policy measures be most likely to achieve a country's key macroeconomic goals?
Why might a government prefer to use floating exchange rates?
What is least likely to rise as a result of the use of expansionary fiscal policy?
The table shows GDP indices for a country over a three-year period. [Figure: table with GDP indices]. Inflation and economic growth are two macroec...
A government raises interest rates to improve the current account of the balance of payments. What might reduce the effectiveness of this policy?
Why does a production possibility curve exist for every economy?
Which statement is a normative statement?
Which combination best describes the basic economic problem?