Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
Analyse the difference shown by marginal revenue productivity theory between wage determination in perfect and imperfect labour markets. Discuss th...
All countries hope to cause their economies to expand and develop through economic growth.
The statements refer to the proposal to build another runway at London's Heathrow airport. Which statement is normative?
YX is an economy's production possibility curve (PPC). The equation of the curve is qY = 1000 – 2qX. [Figure showing a downward sloping straight li...
A farmer picks 10kg of strawberries in each hour. The farmer is twice as productive at picking raspberries. Which diagram shows the farmer's daily ...
Governments provide public goods. What is an example of a public good?
India is one of the largest producers of tractors in the world. S₁ and D₁ are the original supply and demand curves for Indian tractors. [Figure sh...
The diagram shows the demand curve for a product. [Figure showing a downward sloping straight-line demand curve labelled D, with price on the y-axi...
The cross-elasticity of demand between two goods will be higher
The price elasticity of supply of a good is +2. The quantity supplied originally was 200 units. The price increases by 30%. What will be the quanti...
The diagram shows S₁ and D₁, the original supply and demand curves for fast food in an economy. Point X is the original equilibrium. Fast food is a...
When will the price mechanism not function as a system for allocating goods?
During a certain period, 10000 units of a normal good are sold at a price of US$20. During a later period, 12000 units are sold at a price of US$22...
A free market is in disequilibrium with a shortage of a product. As the market moves towards equilibrium, what will happen to the price, the quanti...
In the diagram, D and S represent the domestic demand and supply curves for a product. Sw represents world supply of the product at a world price o...
A government wishes to impose a tax on a good so that the producer and not the consumer pays most of the tax. Which type of elasticity would it be ...
The diagram shows the effect on the supply curve of a product when the government provides a subsidy. [Figure showing two upward sloping supply cur...
What is not an example of a transfer payment?
In 2016-2017 a government spent $135 billion on the health service. The diagram shows the provision of healthcare in that country. [Figure showing ...
A government privatises the telecommunications industry. What is least likely to increase?
The diagram shows short-run aggregate supply and demand in an economy, where the initial equilibrium is at S. [Figure showing multiple aggregate de...
The diagrams show the inflation rate over time in four countries. Which country experiences a falling cost of living throughout the period?
A government statistical office measured changes in income from employment, pensions and benefits, then subtracted income tax and welfare contribut...
The table shows all of the items on the current account of a country's balance of payments. $ million exports of goods 143 imports of goods 156 exp...
Country P exports goods and imports goods. Export prices and import prices are set to an index of 100 in year 1. The table shows corresponding pric...
In the diagram, MN is the production possibility curve of a country that has a comparative advantage in the production of good Y. [Figure showing a...
What is the difference between a customs union and a free trade area?
Which statement about trade protection is correct?
What is an example of expansionary monetary policy?
China had a US$155 billion current account surplus in 2012. Which combination of policies might the Chinese Government use to reduce the surplus?
In an economy, prices are rising. The government wishes to limit further increases in prices. Which policies would it be likely to use?
Russia's economic problems are getting worse Russia's currency, the rouble (RUB), has been falling rapidly in value. Content removed due to copyrig...
Section A Answer this question. Thai Economy's Prospects Improve Table 1.1: Total expenditure in Thailand, by category, 2014 | Category of Spending...
Section B Answer one question. You may answer with reference to your own economy or other economies that you have studied where relevant to the que...
The Trans-Pacific Partnership (TPP) – good or bad? In February 2016, the controversial TPP trade deal was finally signed at a ceremony in Auckland,...
In March 2016, the United Kingdom government announced that it will introduce a ‘sugar tax' on the producers of fizzy soft drinks in order to reduc...
In 2015, it was reported that the global demand for chocolate was projected to increase but it was unlikely that the global supply of cocoa beans, ...
4 (a) Explain the main causes of changes in the general price level in your country, or any other country with which you are familiar. (b) Discuss ...
A government makes a study of the costs and benefits of allowing a leisure company to develop a holiday resort in an area of natural beauty. When s...
What is an example of market failure? A atmospheric pollution in cities due to emissions from cars B free entry for children to an art gallery C hi...
The diagram shows a firm's long-run cost and revenue curves. [Figure 3.1] At which level of output is the firm both allocatively and productively e...
When does the slope of a budget line always change? A A person buys more of one of the two goods. B A person's income changes. C One of the two goo...
The points in the diagram represent different combinations of good X and good Y. [Figure 5.1] An individual prefers more of both goods to fewer, bu...
The diagram shows a firm's total cost curve. [Figure 6.1] At which level of output will the firm's marginal cost be equal to its average cost? A A ...
What is necessary for a firm to practise price discrimination? A There are many buyers in the market. B There are many firms in the market. C The m...
A mobile (cell) telephone manufacturing company takes over an electronic chip design company. This is an example of which type of growth? A horizon...
An imperfectly competitive firm was making supernormal profits. The following year it made normal profit with no change in output. How could this s...