Cambridge & Pearson Edexcel Past Paper Questions
Browse 35,704 questions from Cambridge O-Level & A-Level and Pearson Edexcel IGCSE & IAL exams. Click any question to practice.
The diagram shows a production possibility curve for an economy that is producing at point P. [Diagram] Which quantity of X is given up to produce ...
Despite much opposition, the local government in a popular tourist resort built a leisure centre and swimming pool which is open to everyone. Many ...
On a demand and supply diagram, other things remaining the same, a fall in the price of a commodity will normally shift
In 2014, in an attempt to find new uses for seven sites previously used to bury rubbish, the Hong Kong government announced it would allow private ...
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?
Which change will lower the price elasticity of supply of a product?
The diagram shows the market for coffee. The initial equilibrium position is X. The price of tea, a substitute, falls and an indirect tax is impose...
The diagram shows the market for new houses. [Diagram] What would cause the change in the market equilibrium position from X to Y?
Jam and honey are substitutes. Honey and beeswax are in joint supply. Other things being equal, what will be the result of an increase in the price...
For price to act as a rationing mechanism for a final product, the effect of a rising price must be to
A well-known clothes retailer decides to have a summer sale in its shops. As a result the number of people who use the shops increases. [Diagram] W...
In 2014 some supermarkets reduced the price they were willing to pay farmers for milk to below what was then the market equilibrium price. They pas...
The initial market for a product is represented by the demand and supply curves D₁ and S₁ respectively. A subsidy is then introduced, represented b...
What is the most likely purpose of a government making transfer payments, such as social security benefits, to unemployed workers?
In the diagram, D is the demand curve of an agricultural commodity and S is the initial supply curve. The government promises to maintain farmers' ...
Which circumstance is not likely to represent a strong case for an industry to be nationalised?
How does a rise in the price of factors of production affect the aggregate supply (AS) curve?
In the diagram, AD₁ is an economy's initial aggregate demand curve. [Diagram] What could cause the curve to shift to AD2?
Relative weights are used in calculating the index of retail prices to reflect the different
The table contains some figures from the 2014 balance of payments account of the United States (US). [Table] What cannot be concluded about US trad...
A country has a fixed exchange rate. What is likely to result in a deterioration in its balance of payments?
At present, one unit of a country's currency exchanges for US1.2. The country aims to set its exchange rate equal to US1.0. Which combination of go...
The table gives the Terms of Trade Index in 2010 and 2013 for Japan and Venezuela. [Table] Which combination of statements is a correct interpretat...
The US President signed a trade agreement which allowed more duty-free access to the US market for Latin American and Caribbean countries. Who migh...
Which statement is not a valid reason why a country may impose protectionist measures?
A government wants to operate a tighter monetary policy. What would it increase?
A country has a large current account deficit. Its government decides to devalue its currency. In which circumstance would such a measure reduce th...
The diagram shows four possible aggregate supply curves and an equilibrium point X. A government employs deflationary fiscal policy in order to red...
Concern in Vietnam over trade with China Table 1: The Value of Vietnam's Trade in Goods with Selected Trading Partners: January–July 2014 | | Unit...
Explain the difference between public goods and private goods. Consider why profit can be made through the supply of one type of good, but not the ...
Explain the factors that are likely to make the supply of a product relatively price inelastic.
Explain what is used as money in a modern economy. Consider how an increase in the money supply can cause inflation.
What might help achieve allocative efficiency?
In 2015, a company electrified the main railway line between two cities in order to decrease the journey time. The work was noisy, expensive and to...
Which measure is specifically designed to reduce divergences between private and social costs?
Which is an internal economy of scale?
The diagram shows the position of a profit-maximising firm in a perfectly competitive industry. [Figure showing price/cost vs output, MC, AC, AR=MR...
When a firm doubles its variable inputs, its fixed inputs are unchanged and output less than doubles. What does this illustrate?
Which practices would be classified as price discrimination?
To maximise total revenue, up to which point should a monopolist increase output?
A firm is operating in perfect competition. What will be the effect on the firm's revenue if it increases its output by 5%?
A firm successfully engages in a policy of predatory pricing. What will happen to the prices charged by the firm in the short run and in the long run?
What will act as a barrier to collusion between firms?
The diagram represents different combinations of good X and good Y. [Figure showing good Y vs good X, with points U, T, V, W] A consumer prefers mo...
A consumer demands two goods, X and Y. The indifference curve diagram shows the effect of a change in the price of one of these goods on the consum...
What could prevent a market failure?
The diagram shows the Gini coefficient for four countries between 1975 and 2010. [Figure of Gini coefficient for Brazil, Mexico, India and China 19...
Extra fishing boats start to operate from a local harbour which depends on fishing for its main income. Which action by the local authority is an e...
What is the main disadvantage of government regulation aimed at restricting the profits earned in a monopolistic industry?
What is an advantage of a 'creation of property rights' solution to externalities resulting from river pollution?