Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
The consumption of a good generates external benefits. Its market equilibrium is E. Which diagram shows the change in the equilibrium (E to E₁) nec...
What is an advantage, rather than a disadvantage, of cost-benefit analysis in deciding on a government investment project?
What is a distinguishing feature of a public good that is not found with private goods?
In the diagram S and S₁ are the supply curves for an agricultural product in years 1 and 2 respectively. D is the demand curve in years 1 and 2. In...
Each diagram shows the production possibility curves of two economies, X and Y, which produce food and clothes. In which diagram would both economi...
An argument against trade protection is that it will increase
A country's terms of trade currently stands at 150 (base year 2000 = 100). Since 2000 the average price the country has received for its exports ha...
A government wishes to present its final balance of payments account. It has calculated the current account balance, the capital account balance an...
The table shows inflation rates, unemployment rates and changes in money wage rates between 2008 and 2009 for a number of countries. What can be co...
The diagram compares the inflation rates of Paraguay and Argentina between 1950 and 2005. What can be concluded about inflation rates in the two co...
Over a period of a year, the annual rate of inflation falls from 10% to 6%. Which statement is correct?
A Japanese company builds a factory in the UK to supply both the UK market and the market in the rest of Europe. What is likely to be the long-run ...
A country experiences changes in the value of its exports and imports of goods and its inflow of incomes and transfers. These are shown in the tabl...
What is likely to happen if there is a rise in the international value of a country's currency?
The table shows observations of the exchange rate of an economy and its current account balance over six years. Which concept does the data in the ...
The diagram shows the exchange rate for the UK£ in terms of the US$. The original exchange rate is at E. What will be the new exchange rate equilib...
The diagram shows the production possibility curves of two economies, X and Y. Which statement about the two economies is correct?
What is a characteristic of a planned economy?
In the diagram, JK is an economy's production possibility curve. [Figure 2.1] What could cause the curve to shift to GH?
The growing domestic, agricultural and industrial demand for water is leading to a world shortage of water. Which change would reduce this problem ...
What is considered as money if money is defined as anything which is always accepted for paying goods and services? [Figure 4.1]
What is a market demand curve?
The table gives the short-run supply schedules of three firms X, Y and Z, which comprise an industry. [Figure 6.1] Which is a point on the short-ru...
The diagram shows the relationship between total expenditure and price for three products, 1, 2 and 3. [Figure 7.1] Which curves represent the prod...
The table shows the quantities demanded (Q) of goods X and Y corresponding to different prices (P) of the two goods. [Figure 8.1] Within which rang...
The diagram shows the demand and supply curves of a commodity before and after a tax is removed. [Figure 9.1] What is the tax per unit of output an...
The demand for a good falls at the same time as its costs of production decrease. What will be the combined effect of these changes on the price an...
The diagrams show a change in demand from D₁ to D₂ and a change in supply from S₁ to S₂ for four different goods. [Figure 11.1] Which diagram illus...
The table shows the maximum amount three students would each be willing to pay for a taxi to take them home from a night club. [Figure 12.1] Assume...
The diagram shows the demand and supply curves for parking spaces in a hospital car park. [Figure 13.1] The managers decide to rely on the price me...
Which statement is correct?
In deciding whether to invest in a new project, what would be taken into account in government cost-benefit analysis but not by a private company?
Why does the production of public goods have to be financed by the government?
In the diagram, D is the demand curve for an agricultural commodity and S₁ is the initial supply curve. [Figure 17.1] A good harvest causes the sup...
The diagram shows the market for spectacles. Initially the market equilibrium price is P₀ and quantity Q₃ is bought and sold. [Figure 18.1] The gov...
A country has a comparative advantage in producing spices. Why may it choose not to specialise in spices?
The diagram shows the production possibility curves for two countries, X and Y. [Figure 20.1] A decrease in productivity moves country X's producti...
Which statement about the impact of a tariff and a quota is correct?
A firm borrows money from a bank based abroad in order to pay a lower rate of interest than is available from banks in its own country. Which two p...
Which change would directly reduce the size of a country's labour force?
The figures show the Consumer Price Index (CPI) of a country. (1990 = 100) [Figure 24.1] What can be deduced from the data?
A country experienced a significant fall in unemployment but its inflation rate remained low. What could explain this?
A country has a fixed exchange rate. What is likely to result in an improvement in its balance of payments?
A government decides to reduce the quota on imported cars from 2000 to 1000 per year. What is likely to happen?
A representative basket of goods costs $2500 in the United States. The same basket of goods costs £2000 in the UK. What can be deduced from this?
In the diagram D₁ and S₁ are the initial supply and demand curves of the pound sterling in foreign exchange markets. [Figure 29.1] What will cause ...
The currency of a country is fixed by the Central Bank at a certain value in terms of US dollars. If currency devaluation is not possible, which po...
A government minister states that the main economic benefit of locating a new coastal region is the 500 jobs it will create. What does this stateme...
The diagram shows two production possibility curves (EF and GH), before and after technological progress has taken place. After technological progr...
The table shows indicators for four countries undergoing a transition to a market economy. Which country has achieved the most indicators of a succ...