Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
What is the most likely reason economists will give to explain why large hospital projects are often funded by governments?
How would net external benefit be calculated?
The table shows the expected costs and benefits from four government projects. The can afford only one project. Which project should the government...
What will make it more likely that road tolls will reduce traffic congestion?
In the diagram, S₁S₁ and DD represent the original supply and demand curves for an agricultural product. [Figure 18.1] Bad weather then reduces sup...
Steel is produced in a number of countries, including China, Japan and the US. It is manufacture of cars. The US protects its domestic steel indust...
The supply of an imported good is shown by curve S. [Figure 20.1] What will be the new supply curve if an ad valorem (percentage) tariff is imposed...
What is found in a customs union but not a free trade area?
The table shows how much rice and wheat two countries, X and Y, can grow when divides its resources equally between growing rice and wheat. country...
What must fall when the rate of unemployment rises?
The table shows the percentage price changes in some items in the UK Consumer Price Index (CPI) in the year to 1 June 2006. item % change in price ...
In Year 1 the price of a barrel of oil increased from $60 to $110. In Year 2 there was a further increase to $115 a barrel. Assume that oil price c...
A government has low reserves of foreign currency. When would it be likely to consider a deficit on current account to be a serious problem?
The diagram shows the number of US dollars ($) and Euros (€) which exchanged fo sterling (£) between 2002 and 2004. [Figure 27.1] What happened to ...
In a country the Marshall-Lerner condition for an improvement in the trade balance is satisfied in the long run, but quantities of imports and expo...
Assume the Chinese monetary authorities are committed to maintaining the excha China's currency the Yuan against the US$ between P₁ and P₂ on the d...
In 2008 the Chinese government was under pressure from other countries to reduce its current account surplus on its balance of payments. Which comb...
The curve PP in the diagram is the production possibility curve for a country producing goods X and Y. The production of X is more labour intensive...
In Economics, decisions are usually taken 'at the margin'. What does this mean?
Which factor of production and example are correctly linked? [Table with columns 'factor of production' and 'example']
During a period of falling incomes in Germany in 2009, demand for jewellery declined. There was, however, a rise in demand for frozen foods. How wo...
It was estimated in 2010 that milk had an income elasticity of demand of -0.6. What can be concluded about milk from this information?
In a free market in disequilibrium, which combination of price and quantity will lead to a fall in price and a contraction in output to reach equil...
A manufacturer has estimated that the price elasticity of supply of ice cream is +1.5. If the demand for ice cream rises and price increases by 10%...
The table shows demand and supply schedules for red peppers. The equilibrium price is initially 15 cents per kg. [Table showing price per kg (cents...
The diagram shows the market for new houses. [Figure showing supply S1, S2 and demand D1, D2 curves, with price and quantity axes, and points X and...
In the diagram, S₁ is the original supply curve and D is the original demand curve. [Figure showing supply S1, S2 and demand D curves, with price a...
When demand for a good falls, its price falls. What is the function of the price fall?
When is a rise in the price of a product likely to cause more resources to be allocated to its production?
A congestion charge of £10 per day has been imposed on motorists taking their cars into Central London. What is it about driving into Central Londo...
A cost-benefit analysis of a proposed underground railway produced the following statistics. [Table with columns 'annual costs and benefits' and '$...
A government admits that building a new bridge would produce a positive net benefit to society. Owing to a lack of public funds, the bridge would h...
What is a merit good?
The diagram shows the market demand and supply curves for rice. [Figure showing supply S and demand D curves, prices $8, $10, quantities Q1, Q2, Q3...
A government removes the tariff on a product as shown in the diagram. [Figure showing domestic supply S, domestic demand D, world supply with tarif...
Country X joins an existing customs union comprising countries Y and Z. Country W is outside the customs union. Both X's initial tariff and W's tar...
The table shows four combinations of price changes which may affect a country's terms of trade. Which combination of price changes must cause an im...
The table shows all of the items on the current account of a country's balance of payments. [Table showing '$ million' for exports of goods, import...
The table shows the rate of unemployment and population for selected countries in 2009. [Table showing 'country', 'unemployment rate (%)', 'populat...
The average consumer divides his expenditure between food, clothing, accommodation and transport in the ratio 2:1:4:3. During the course of a year,...
At the start of 2009, a worker earned $100 a week. In 2009, the Retail Price Index (RPI) rose 4% and his average wage rose 7%. In 2010, the RPI fel...
The table shows items from the balance of payments for countries A, B, C and D. Official Financing including changes in reserves is excluded from t...
What must be the necessary result of a surplus in the current account of a country's balance of payments?
The graphs show the changes in the exchange rates of the £ sterling between 1998 and 2003. [Figure showing US$ per £ and £ per Euro (€) exchange ra...
Other things being equal, what will happen if a British company raises the sterling price of goods it sells to Pakistan by the full extent of a dep...
When will a country's balance of payments current account deficit be reduced?
What is the defining characteristic of a mixed economy?
In the diagram the original production possibility curve is LM. [Diagram] What might cause the curve to shift to NP?
The diagram shows a production possibility curve for an economy that produces only X and Y. [Diagram] The economy produces 1200 of good X and produ...
What might cause a country's currency notes to cease to act as money?