Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
Which statement about price elasticity of supply is correct?
The price elasticity of demand for a firm’s product is equal to one for all price changes. What would be the result of this?
What leads to a downward shift of a normal supply curve?
A market is in equilibrium with 100 units of the product sold at a price of US$10 each. The price elasticity of supply for the product is +2.0 and ...
The diagram shows the market for meat in equilibrium at X. The cost of producing meat rises and there is a trend for consumers to change from meat ...
Goods X and Y are complements. What will be the effect on the equilibrium price and quantity of good X of an increase in the supply of good Y?
A private company achieves a producer surplus at the market equilibrium price. What might reduce the size of the private company’s producer surplus?
Knowledge of which combination of demand elasticities would be relevant to a firm trying to increase its revenue?
What will definitely stop, following the nationalisation of an industry?
The diagram shows the effect of the government introducing a subsidy on a product. [Figure 15.1] What are the effects of the subsidy on government ...
In the diagram, S₁ and D₁ are the initial supply and demand curves of a product. [Figure 16.1] What would be the new supply curve following the rem...
The table shows sources of government revenue in a fiscal year for an economy. What is the total amount, in $ billions, of tax revenue raised by in...
Education from 4 to 16 years of age in most developed economies is provided at zero price, financed from taxation. Why should the government do this?
What will cause a movement along an aggregate supply curve?
A government devalues its fixed exchange rate. What is most likely to be its aim?
As part of its trade policy, a government subsidises the cost of machinery used to manufacture goods for export. How will this affect the balance o...
What is correct about the causes of inflation?
The figures shown are from New Zealand’s balance of payments for 2017 according to data published by Stats NZ in September 2018. What was the value...
Two statements are shown. 1 A country can produce a good at a lower opportunity cost than another country. 2 A country can produce a greater quanti...
The diagram shows the effect of the introduction of a tariff on good X by country Y. [Figure 25.1] What is the revenue, in US$ million, received by...
Between 2011 and 2013, retailers reported that expenditure on domestically-produced and imported goods had reduced. This was because consumers did ...
Increased international competition leads to a worsening in a country’s current account balance. In the absence of any offsetting factors, how is t...
Why are higher interest rates together with increased taxation on expenditure likely to cause domestic deflation?
Which policy aimed at correcting a balance of trade deficit is an expenditure-reducing policy?
Which policy will not cause a reduction in the rate of inflation?
Which list has the most words that are more likely to relate to a positive statement than to a normative statement?
What is the main characteristic of a planned economy?
An economy produces combinations of computers and food as shown on the diagram of a production possibility curve (PPC).
Four students have to complete a table showing the functions of money. Which student is correct?
In which situation is the price elasticity of supply for a product most likely to be relatively low?
The diagram shows supply and demand for a good. If price increases from P₁ to P₂, what will happen to consumer surplus?
What can be concluded about the roles of demand and supply in a free market?
A firm has a successful advertising campaign for a good. Which combination shows the impact on demand or supply and the associated reason?
What would be the most likely reason for a firm's decision to calculate the price elasticity of demand for its product?
The cross-elasticity of demand of good S with respect to the price of good P is +1.5. The cross-elasticity of demand of good S with respect to the ...
Which statement about market disequilibrium is correct?
Which combination of tax changes is most likely to be regressive in a developed economy?
The demand and supply functions for a product are quantity demanded = 1500 + 50P and quantity supplied = 300P – 2000 where P = price. With governme...
To improve the air quality for its citizens, a government introduces a subsidy for the producers of cars powered by batteries charged from the elec...
What is definitely not involved when a transfer payment is made?
What is unlikely to occur with an increase in the provision of public goods?
In 2020, shops reported a fall in sales as domestic demand in an economy fell. However, the impact on the overall economy was not as unfavourable a...
What does a trade-weighted exchange rate attempt to take account of?
What will lead to an improvement in the terms of trade?
The diagram shows the annual inflation rate in an economy. What can be deduced from the graph?
A country operates a fixed exchange rate system. What will put pressure on the country to devalue its currency?
The table gives different combinations of possible values for a country's price elasticity of demand for exports and price elasticity of demand for...
A small country imposes no tariffs and has a perfectly elastic supply of smartphones from the rest of the world. Which statement is correct after t...
In a recent year, Japanese car manufacturers agreed to limit exports of cars to the USA. Which form of protectionism is this?
The diagram shows a shift in a country's short-run aggregate supply curve from SRAS₁ to SRAS₂. The country imports oil. Why might an increase in th...