Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
At a time when international demand for oil was high, Bolivia encouraged investment by foreign firms in order to exploit its oil and gas resources....
An economy with a fixed exchange rate experiences an increased deficit on the current account of the balance of payments. What is most likely to in...
The diagram shows the number of US dollars ($) and Euros (€) which exchanged for one pound sterling (£) between 2002 and 2004. [Figure 29.1] What h...
In a time of recession, a government decided to sell a loss-making state-owned industry to a foreign private company. What is the most likely immed...
The diagram shows a production possibility curve for an economy that produces only two goods, X and Y. The economy produces 1200 of good X and oper...
In 2014, the Hong Kong Housing Authority said the waiting time for public sector housing had increased and it would only complete 8900 flats of the...
What is most likely to be a distinguishing feature of the healthcare system of a mixed economy?
An economy can produce only two goods at any one time. These are good X and one other good from A, B, C or D. The table shows the outputs of goods ...
What is most likely to increase the quantity of houses supplied?
In which situation is the demand for a product said to be price elastic?
Goods X and Y are complements with a cross-elasticity of demand of -0.8. When the price of good X was $10, the quantity of good Y demanded was 2000...
The diagram shows an industry's total revenue when different quantities are demanded. Which values should be inserted at points 1, 2 and 3 to ident...
What would increase the price elasticity of supply of a firm's products?
The diagram shows the market for a luxury brand of smartphones. The initial equilibrium is at point X. What will be the new equilibrium following a...
When will it not be possible to use price as a rationing mechanism?
A government imposes an indirect tax on a product with normal demand and supply curves. The tax raises $100 million. What effect will the tax have ...
The diagram shows the supply and demand curves of a commodity. A government subsidy causes the supply curve to shift from S₁ to S2. Which area meas...
Total public spending in the UK, excluding interest payments, is planned to be £679 billion for the fiscal year 2015-2016. The table shows this by ...
Which government policy might limit the rationing function of the price mechanism?
A government plans to increase spending on education and training every year. Which diagram shows the likely effect of this increase on the economy...
In 2012, the rate of inflation in Botswana was 7.5%. Person X kept all of their savings in the form of cash while Person Y put their savings into a...
The graph shows the annual percentage change in the prices of services and in the prices of goods between 2007 and 2012. What can be deduced from t...
An increase or decrease in exchange rates can take place in both a floating and a fixed exchange rate system but different terminology is used for ...
In the diagram, curves D₁D₁ and SS relate to the demand for and supply of £ sterling in the foreign exchange market. What may cause the demand curv...
The table shows the indices of import prices and export prices of four countries between July 2013 and July 2014. In which countries did the terms ...
Country X can produce apples and plums at lower cost than country Y. Country X can also produce strawberries but it costs more to do so than in cou...
A government wants to use trade protection both to improve its trade performance and to raise government revenue. Which policy will help it to achi...
A newly-built public sector engineering training college received poor inspection reports. The government ceased to pay the college the money that ...
Which measure to correct a balance of payments current account deficit would be classified as an expenditure-dampening policy?
To overcome the problem of scarcity, countries with few natural resources need to concentrate on the quality of human resources. Which set of polic...
A government decides to subsidise farms producing milk in its country. Which question about this decision is a normative question rather than a pos...
Economy X uses its resources in the labour-intensive production of wheat and wooden furniture as shown by the production possibility curve FW. With...
What is most likely to severely affect the ability of money to act as a medium of exchange?
What would not affect the position of the demand curve for wigs?
In the diagram D₁D₁ is a straight line demand curve and D2D2 is a rectangular hyperbola curve. [Figure showing demand curves D1D1 and D2D2 intersec...
Over a four year period, as the price of new houses increases, the price elasticity of supply for new houses falls, as shown. All new houses were s...
Prices of gold, silver and copper fell considerably in 2011 and again in 2015. The fall in 2011 was said to be because miners increased production....
Consumer X is the largest of five consumers and buys 50% of sales. The table shows the quantity of the good demanded by consumer X and the market s...
What is meant by consumer surplus?
The diagram shows the demand and supply curves of a commodity before and after a specific tax is removed. [Figure showing two supply curves S and o...
The diagram shows the market for heating oil. [Figure showing supply curve S and demand curve D intersecting] If the government introduces a produc...
The diagrams show UK Government total spending and welfare spending in £ billions between 2005 and 2014. [Figure showing two bar charts: 'total spe...
Health services in an economy are provided by private clinics that charge high fees. The government decides health services should be provided for ...
In its recent budget a government reduced total expenditure while increasing the amount spent on training to increase the productivity of the workf...
The table shows the retail prices index for four countries for years 2 and 3. (Year 1 index = 100 for all countries.) [Table showing country (A, B...
What does the current account of the balance of payments include?
Assume the Chinese monetary authorities are committed to maintaining the exchange rate of China's currency, the Yuan, against the US$ between P₁ an...
In the UK in July 2014, £1 = US $1.71. By the end of August 2014, £1 = US $1.65. What is most likely to explain this?
Which formula is used to calculate a country's terms of trade?
Country X forms a customs union with country Y. X then ceases to produce its own cars and instead imports cars from Y. Country Y diverts some of it...