Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
What is not a possible cause of cost-push inflation?
What would lead a country to move from a surplus to a deficit on the current account of the balance of payments?
What determines the purchasing power parity of a currency?
With an exchange rate of 5 Egyptian pounds (EGP) = 1 US dollar ($), an American in Egypt for EGP 100. Assuming that the dollar price remains uncha...
The US Central Bank raises its interest rate to improve its balance of payments position. The diagram shows the resulting changes in the demand for...
In 2013, there was much criticism of a government project to build a new high-speed rail link between two cities. What is the most likely reason fo...
The transition of the former Soviet Union from a planned economy towards a market economy was accompanied by a reduction in the proportion of incom...
Three women work in a pottery workshop, each dividing their time equally between three products. The table shows how many units of each product are...
The diagram shows a demand curve for a good. [Figure 5.1] Which statement describes the nature of this demand curve?
Assume that Tiger Woods, a famous golfer, announces that his final golf appearance will be at the next US Open Tournament. How might this affect th...
A survey into the market for good X found that it is an inferior good and a close substitute for good Y. Which values for the income elasticity of ...
The diagram shows the demand curve for a product with unitary price elasticity. [Figure 8.1] What will happen with such a curve?
The diagram shows the effect on the market for rice of a change in government policy that causes a shift in the supply curve from S to S₁. [Figure ...
The price of a firm's product rises by 12%. After one week the firm is only able to produce the same quantity but after one month it can increase t...
Many people used to smoke in restaurants. Restaurant owners have found that the reduction in smoking caused by a tax on cigarettes has decreased th...
S₁ and D₁ show the original supply and demand curves for cola. Point X is the initial equilibrium. What will be the new equilibrium position follow...
What is an example of an externality?
The table gives the estimated costs and benefits of a proposed new leisure complex. [Table 15.1] What is the estimated value of the social benefits...
The production of what is most likely to require a government cost-benefit analysis?
A national museum charges an entry fee for admission. Which combination of rival and excludable qualities would apply to visits to the national mus...
The diagram shows the effects of placing a unit tax equal to AB on a good. [Figure 18.1] Which area represents the burden of tax paid by the producer?
Below are production possibilities for two countries showing their daily production of food and drink, each using the same quantity of resources. [...
How might trade protection reduce a country's ability to compete in export markets?
What is found in an economic union but not in a customs union?
The table shows the balance in $million for four items in a country's current account for two years. [Table 22.1] What can be concluded about the c...
Company X reduces its workers from 250 to 200 and as a result its output decreases from 5000 to 4800 units per day. Company Y increases its workers...
In 2012, a survey of household expenditure identified X and Y as the contents of a basket of goods for a price index. The value of the index in 201...
In an economy with an interest rate of 4% per annum, the rate of inflation falls from 5% to 3% per annum. What will be a benefit of this fall?
What is the real exchange rate?
An appreciation of country X's currency leads to an increase in its foreign currency earnings from tourism. What can be concluded from this about t...
In the diagram, curves D₁ and S relate to the demand for and supply of £ sterling in the foreign exchange market. [Figure 29.1] What may cause the ...
A government uses monetary policy to manage its economy. Which sequence correctly describes the most likely consequence of an increase in the count...
In 2007 there was a worldwide shortage of oil. The diagram shows the consumption and production of oil (billion tonnes) in 2007 for selected countr...
What is necessary for effective specialisation?
The change from WX to YZ in a country's production possibility curve is shown. [Figure X.X] What could have caused this shift?
Recently, thousands of ancient Roman coins were discovered buried in a field in the UK. Funds were raised by a museum to buy them. What function of...
What describes a market supply curve?
The demand curve for new cars in a country shifted to the left. Which change could have caused such a shift?
The table gives estimates of the price elasticities and cross elasticities of demand for bus and rail travel. [Figure X.X] What would be the change...
It has been estimated that bread has an income elasticity of –0.04. What can be concluded about bread from this information?
Sx, Sy and Sz are the supply curves of goods X, Y and Z. [Figure X.X] If the price of all three goods rises from $5 to $10, what are their price el...
A US study, published in July 2014, warned teenagers to reduce the amount of fizzy drink they consume. One can of fizzy drink contains an adult's e...
In the diagram, the supply curve shows the number of spaces in a car park and the demand curves show the demand for spaces on four different days (...
The diagram shows the demand curve and supply curve for a good on which the government imposes a specific tax. [Figure X.X] What will be the result...
The diagram shows a consumer's demand curve for a product. [Figure X.X] How does consumer surplus change as the price of the product rises in $5 st...
The diagram shows demand and supply curves for a good. S₁ is the original supply curve, S2 is supply after a tax is added. [Figure X.X] How much ta...
In the diagram, DD is the demand curve for an agricultural commodity, S₁ is the supply curve in period 1 and S2 is the supply curve in period 2. Th...
A government decides to privatise a nationalised company by transferring ownership directly to its managers and workers. What is its most likely mo...
In 2012, high street shops reported a fall in sales as domestic demand in an economy fell. However, the impact on the overall economy was not as un...
An economy is initially in equilibrium at point X in the diagram. [Figure X.X] The government then introduces a supply-side policy measure which ca...