Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
What is most likely to cause an unemployed worker to be classified as frictionally unemployed?
The table shows figures estimated at the end of a train drivers' strike. [Figure 20.1] What was the reduction in the recorded level of national inc...
What is likely to be an expansionary monetary policy?
A government increases direct taxation to reduce its budget deficit. How is this likely to affect the government's ability to achieve its macroecon...
An income tax has a tax-free allowance of $10000 and a single rate of 25%. What type of tax is this?
Which supply-side policy will encourage new entrepreneurs?
The diagram shows aggregate demand (AD) and aggregate supply (AS) curves. The initial equilibrium is at X. A government decides to invest in an inc...
What is most likely to lead to a persistent surplus in a country's current account of its balance of payments?
Which formula is used to calculate the terms of trade?
A country is experiencing a deficit on the current account of its balance of payments. Which policy decision could reduce the deficit?
The Euro (€) is the main currency of the European Union. The diagram shows the exchange rate between the Euro and the US dollar. [Figure 30.1] What...
The diagram illustrates the production possibility curves for an economy in Year 1 (X1 Y1) and Year 2 (X2 Y2). [Figure]
What does the concept of ceteris paribus allow economists to do?
The diagram shows a person's marginal costs and marginal benefits of making trips to the cinema. [Figure]
A change in market conditions causes a reduction in supply. This results in a higher price for the product, which has a downward-sloping demand cur...
A government wishes to impose a tax on a good so that the consumer and not the producer pays most of the tax increase. Which type of elasticity wou...
The table shows the price elasticity of demand for four goods and services. [Table] If the price of each item increased by 1%, for which items woul...
Two goods, X and Y, are complementary goods. Column 1 of the table below shows the original market situation at time period 1 and column 2 shows th...
The table shows the maximum price a consumer would be willing to pay for successive cans of fruit juice. [Table] The price of a can of fruit juice ...
What is generally considered to be one of the advantages of using the price mechanism as a rationing device?
What would cause a failure of the market mechanism's rationing function?
What can be provided only as a public good?
The diagram shows the market for wheat. [Figure] What quantity of wheat must the government buy if it wishes to raise the market price from P₁ to P₂?
The government places a maximum price P₁ on an agricultural product. The supply and demand conditions for this product are shown. [Figure] What wil...
A country has the correct climate for growing tea, which is produced very cheaply and exported. Fruit is also grown, but this costs more as the cli...
A government has been protecting its domestic car industry with a quota on imported cars. It then removes the quota and replaces it with a subsidy ...
What will cause an improvement in a country's terms of trade?
The table shows the balances for four items in a country's current account on the balance of payments for two years. [Table] What can be concluded ...
What could lead to an increase in the size of a country's labour force?
What may cause cost-push inflation?
The graphs show consumer prices and employment for Ireland. [Figure] What can be concluded from the graphs?
The table gives details of some parts of a country's balance of payments. In which year did the country have its largest visible trade deficit?
The table shows indicators of a country's economic performance over a two-year period. [Table] What is consistent with the above information?
The diagram shows the market for Japanese Yen. [Figure] What could have caused the change in the supply of Yen from S₁ to S₂?
Country X trades with only two countries, the USA and Japan. 90% of the country's trade is with the USA and 10% is with Japan. The original value o...
A government with a floating exchange rate wishes to encourage a rise in the international value of its currency. What should it do?
Tom has set up his own business, which is based in premises owned by Fanda. All machinery is hired from an equipment company. Both Tom and Fanda ar...
What is the central problem for an economy?
What are most likely to be disadvantages found in a market economy?
The diagram shows the production possibility curve of an economy. [Figure 3.1] Which statement explains the shape of this curve?
What is a correct statement about money?
What might shift an individual's demand curve for petrol to the left?
The diagram shows a consumer's short-run and long-run demand curves for coconuts. Initially, the consumer purchases quantity Q₀ at price P₀. [Figur...
The table shows a consumer's expenditure on a range of goods at different levels of income. consumer's income ($) 40 50 100 good consumer's expendi...
The diagram shows the demand curve for a product. [Figure 8.1] Which statement is correct?
The table shows the market demand for a product and the individual supply of the three firms X, Y and Z in the industry. price market supply supply...
Domino Pizza, the largest US pizza chain, said that its profits had been reduced by on ingredients and by a reduction in consumers' disposable inco...
Which area in the diagram represents the amount of consumer surplus that would occur in a market if a government enforced an effective maximum pric...
Rising demand for oil from China and other countries is leading to concerns that there may be a world shortage of oil. How should a change in the p...
In the diagram OS₁ and OS₂ are two straight-line supply curves. [Figure 13.1] As price increases, the elasticity of supply