Cambridge Past Paper Questions

A community relies on a private company to supply electricity using a coal-fired power station. The power station causes air pollution which impose...

Some workers in a low-paid job decide to work longer hours to increase their disposable income. However, this decision reduces state-provided benef...

Which policy is likely to be the least effective means of producing a more equal distribution of income amongst households? A the imposition of min...

The table shows the main characteristics of employment in two occupations. occupation X occupation Y average annual wage $100000 $60000 number of ...

The table shows a firm that has four possible methods of production to make its desired output. Each method has a different cost and causes a diffe...

How can GDP at market prices be calculated if GDP at factor cost is known? A add taxes, add subsidies B add taxes, subtract subsidies C subtract ta...

Which characteristics of the population, the size of the informal economy and the rate of inflation would mean that Gross Domestic Product (GDP) is...

The table gives the percentage of employment in the primary, secondary and tertiary sectors in four countries. Which country is most likely to be a...

The diagram shows unemployed persons (in millions) for the years 2000 to 2016 for the European Union. [Figure]. During which period was the highest...

A large coal mine is forced to close because of falling demand for coal as consumers switch to less-polluting fuels. The government organises retra...

Economists have proposed that the best policy to promote development is 'trade not aid'. What is implied by this proposal? A Developing countries s...

The table shows the values of selected macroeconomic variables over a period. year 1 year 2 ($m) ($m) investment 200 220 saving 180 190 exports 10...

What is most likely to increase if an economy enters a negative output gap? A business confidence B economic growth rate C inflation rate D unemplo...

Under which conditions will a Keynesian expansionary fiscal policy be most likely to take an economy out of a recession without too much inflation?...

What would cause an increase in the transactions demand for money? A a fall in the price of bonds B an increase in nominal national income C an inc...

What may lead to a reduction in bank lending in a country? A an increase in commercial banks' balances with the central bank B an increase in the l...

The table gives details of the inflation and unemployment rates for different countries in 2008 and 2011. inflation rate (% per annum) unemploymen...

The government decides to raise the rate of Value Added Tax (General Sales Tax). What does this suggest is the government's main macroeconomic obje...

The diagram shows the market for a product, the production of which has both external costs and external benefits.

The government is considering building flood defences along a river. It has calculated the costs and benefits as follows. costs benefits $m $m pr...

The graph shows the total utility (TU) obtained by a consumer from eating biscuits over a period of one hour.

The diagram shows budget lines for normal goods X and Y.

A consumer spends all of their income on two goods, Y and X, and is at position E. The price of X falls and the price of Y remains constant. The gr...

The market structure of an industry changed from being an oligopoly to monopolistic competition. What is most likely to have increased?

A firm has total production cost of $200000. Its average fixed cost is $120 and its average variable cost is $80.

The diagram shows the marginal cost (MC), average variable cost (AVC) and average total cost (ATC) curves of a profit maximising firm in a perfectl...

The table shows the average incomes of the richest 20% of households and the poorest 20% of households in the UK (2015–2016), and the effects of go...

Assuming there are no externalities, where would a nationalised firm set output to maximise social welfare?

What is the specific advantage of pollution permits, when compared with an alternative policy of taxes levied on the quantity of pollutants emitted...

Which diagram correctly shows the relationship between the average product (AP) and the marginal product (MP) of labour, given that the quantities ...

The diagram shows the short-run relationship between the total output of a firm and the quantity of labour.

Company X reduces its number of workers from 250 to 200 and as a result its output decreases from 5000 to 4800 units per day. Company Y increases i...

The graphs show the Human Development Index and its component parts for Zimbabwe.

The table shows the annual percentage (%) change in China's GDP and the contribution of some of its component parts between 2006 and 2012. 2006 20...

In a closed economy with no government expenditure and no taxation, the initial income is $5000 million. All savings are carried out by consumers, ...

The diagram shows a liquidity preference curve (LP) representing the demand to hold money in relation to the rate of interest and the money supply ...

The graph shows a shift in the liquidity preference curves for an economy from LP₁ to LP₂.

The diagram shows cost and benefit curves for a good in a free market. [Figure 2] Which combination is correct? actual output social optima...

A food processing firm discharges waste water into the lake next to its factory. What would reduce the difference between the private cost and the...