Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
What does not cause the demand curve for a good to shift its position?
What can be concluded about a product which has an income elasticity of demand and a cross elasticity of demand (XED) of +1.2?
A manufacturer increases the price of his product in an attempt to increase total revenue. The table shows the outcome of the policy. price ($) tot...
The market demand equation for a good is given by Qd = 310 - 20p and the supply Qs = 10 + 10p where p denotes the price of the good. What is the eq...
The diagram shows the market for computer games. The market starts in equilibrium at X. [Diagram] What will be the new equilibrium if the tax on co...
The diagram shows a market for a good which is supplied partly from domestic production and partly from imports. Sh represents domestic supply and ...
The diagram illustrates the effects of placing a specific tax equal to JM on a good. [Diagram] Which area represents total tax receipts?
In which situation will it be necessary to use an alternative to the price mechanism to allocate the good between consumers?
Which policy adopted by an airline is the result of an externality?
What will be the result, from society's view, if the market price for a product does not reflect the negative externalities in its production?
A government wishes to raise the incomes of farmers without raising the price to consumers. Which policy should it use?
The diagram shows the market supply and demand curves for an agricultural product. The government guarantees producers a minimum price of OX for th...
Why might a government decide to reduce tariffs on agricultural imports?
A government believes that it can reduce its trade deficit by the introduction of a tax on an export. When is this likely to be most effective?
The table shows in millions of US$ the balance for four items in a country's current account for two years. goods services income transfers year 1 ...
The table gives some information on inflation rates, unemployment rates, and changes in wages for a number of countries in 2006. country inflation ...
What is not one of the criteria used by the International Labour Office to determine whether a person should be classified as being unemployed when...
The data given below refers to money supply and prices in the years 2006 and 2010 in four countries. Between 2006 and 2010, in which country was th...
A sudden rise in the price of imported oil caused the annual rate of inflation in a given year to be higher than expected. What might be a likely r...
The table shows the Canadian current account of the balance of payments in 2005 and 2006. 2005 ($m) 2006 ($m) goods 62 372 -4 568 services 12 055 -...
What is most likely to result from a rising deficit in a country's balance of payments from increased imports of consumer goods?
In the diagram D₁ and S₁ are the initial demand and supply curves of the UK pound in foreign exchange markets. [Diagram] What will cause the demand...
When is the imposition of a tariff on a good most likely to reduce a trade deficit?
'From the age of twelve I made a living by buying towels, needles, shampoo and re-selling them as a street vendor. Now, I run three hotels in Hanoi...
What is the correct order of these economic concepts? [Figure 2.1]
A farmer can produce both beef and lamb. The opportunity cost of a kilo of beef is three kilos of lamb. The price of a kilo of beef is twice that o...
What advantage do banknotes (paper money) have over coins (metallic money)?
The diagram shows an individual's demand curve. [Figure 5.1] What does XY measure?
The diagram represents the market for diamonds. [Figure 6.1] What could have caused price to change from P₁ to P₂?
How is the market supply of a product in a competitive market obtained?
The diagram shows the demand for a product for which there are only three buyers, Freeman, Hardy and Willis. [Figure 8.1] The table shows the deman...
The diagram shows the demand and supply curves for tractors. The present equilibrium is at X. [Figure 9.1] What could be the new equilibrium if the...
The diagram shows a country's domestic supply of, and demand for, a commodity that it both consumes and exports. [Figure 10.1] The world price chan...
The diagram shows the market for sugar which is in equilibrium at a price of OP. [Figure 11.1] A government then fixes a maximum price of OP₁. What...
A consumer needed a new camera and a new armchair. She was prepared to spend $500 on one item. She discovered that the camera cost $450 and the arm...
In which set of circumstances will prices play no part in determining how resources are allocated between alternative uses but may still have a rol...
A good is produced which consumers are unable to avoid consuming. What type of good is this?
A government introduces a subsidy to reduce the price of heating oil, maximum rents for apartments and a national minimum wage rate. Who is meant t...
In the diagram, D is the demand curve for a commodity. S₁ and S₂ are the supply curves before and after an intervention by the government. [Figure ...
The table shows the ability of two countries, P and Q, to produce two goods, Y and Z. [Table 19.1] Which statement is correct?
What is the least likely outcome for participating countries of a move towards freer trade?
A country joins a trade organisation, where the only requirements are that member countries adopt identical tariff rates towards non-members and no...
In Australia in 2005 a shipload of exported iron ore paid for 2200 imported flatscreen TVs. In 2010 the same size shipload paid for 22 000 imported...
A country has a population of 500 million. 15 million people are unemployed and the country has an unemployment rate of 6%. What is the size of the...
The diagram illustrates what happens to aggregate demand (AD) and aggregate supply (AS) in an economy during a year. [Figure 24.1] What explains th...
What would increase both demand-pull and cost-push inflation?
A UK resident buys shares in a Spanish company. What will be the immediate and subsequent effects on the UK's balance of payments? [Table 26.1]
The table gives details of some parts of a country's balance of payments. [Table 27.1] In which year did the country have its largest trade deficit?
An economy has a high level of unemployment and a large balance of payments deficit on the current account. What would be a suitable policy for the...
Which statement about the problem of scarcity is correct?