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.
In the UK in 2015 the average wage was £26500 a year. At the same time, certain footballers were earning more than £150000 a week. Which aspect of ...
What is the most effective policy a government could introduce to reduce frictional unemployment?
Which combination is usually found in the least developed countries?
The diagram shows selected US labour statistics from 2001 to 2014. [Figure of US labour statistics from 2001 to 2014 including net new jobs and emp...
Under conditions of full employment, the Quantity Theory of Money suggests that (other things being equal) the effect of an increase in the velocit...
In a closed economy with neither government expenditure nor taxation, the initial income is $2000 million. All savings are carried out by consumers...
Which combination of factors is most likely to result in economic growth?
A country's real national income per head increases. What could explain why this might be accompanied by a fall in households' standard of living?
A director becomes redundant as the result of a company merger. His salary was $80 000. He is entitled to an annual private pension of $30 000. In ...
Which cause of economic growth would involve the least cost for present and future generations of a country's population?
What would encourage industrial expansion in a region of high unemployment?
A government currently has a balanced budget. It is considering the possible variations in tax revenue and government expenditure shown. options ta...
The power of Finance Ministers to make a difference to an economy is exaggerated. Political parties would argue that Finance Ministers have the abi...
Answer two questions. Explain what is meant in economic theory by consumer equilibrium.
Which statement about economics is not correct?
A farmer is able to grow three crops, X, Y and Z, on his land. The farmer decides to grow at most two crops in any year. The table shows six possib...
The diagram shows a production possibility curve for an economy that produces capital goods and consumer goods. [Figure 3.1] Why is the production ...
The Bureau of Alcohol, Tobacco, Firearms and Explosives is a branch of the United States Government which regulates markets. What does its name imp...
What is treated as a variable in constructing a market demand curve?
The diagram shows how the quantity demanded of four goods changes as income changes. Which good has an income elasticity of demand which is always +1?
The table shows three different prices and quantities supplied per week of two products, X and Y. price of X () 10 15 20 quantity supplied of X 8...
In 2016 car drivers bought more fuel (gas) because the price of oil from which it was made had fallen. Which diagram represents this change in the ...
The market demand for a product is made up of the demand from three firms, X, Y and Z. The table shows the demand from each firm and the market sup...
The diagram represents the market for diamonds. [Figure 10.1] What could have caused price to change from P₁ to P₂?
Good X has a substitute, good Y, and a complement, good Z. The price of good Y decreases and the price of good Z increases. Why might the equilibri...
At first, a television service is available at no charge. The television company then charges viewers $6 per hour to watch its programmes. The dema...
The diagram shows the European airline market. [Figure 13.1] New entrants have come into the market, shifting supply from S₁ to S₂. Which area repr...
Which benefit is most likely to result from a rise in the minimum price of labour (wage rate)?
The diagram shows the equilibrium price and quantity of good X. [Figure 15.1] The initial market equilibrium is shown by point E. What might cause ...
The table shows the demand and supply schedules for a product before and after the government pays a subsidy of $4 per unit to the producers. pric...
Which statement about transfer payments is correct?
What is the major problem associated with a government directly providing the correct amount of a public good?
An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to
In the diagram an economy is initially in equilibrium at point X. The government increases spending on education. This coincides with an increase i...
During one year the national output of a country valued in terms of money prices increased by 8% while the index of the prices of all goods and ser...
The table shows the CPI rate of inflation (%) in the United States from 2006 to 2013. 2006 2007 2008 2009 2010 2011 2012 2013 2.5% 4.1% 0.1% 2.7% ...
In 2014 Australia and China negotiated a trade agreement. This removed Chinese tariffs on 95% of Australian exports in exchange for greater access ...
Turkey can produce a good but also imports some of the good from Egypt. The Turkish currency depreciates against the Egyptian currency. How is this...
The table shows the terms of trade for Saudi Arabia. date terms of trade 2000 100 2010 105 2015 137 What can be concluded from the table for Saud...
What is present in a customs union but not in a free trade area?
Which argument in favour of protectionism is not generally regarded as economically valid?
Which action is classified as a fiscal policy measure?
A country has a deficit on the current account of the balance of payments. Which policy would be expected to increase the deficit?
Which type of policy would have the most immediate effect in dealing with a deflationary economic downturn?
Venezuela's worsening economic crisis Table 1.1: Venezuela – Economic Indicators 2014-2017 | | 2014 | 2015 | 2016 (estimated) | 2017 (estimated) |...
Answer one question. Explain how governments face increasing opportunity cost in their decision-making. Use a production possibility curve diagram ...
In cost-benefit analysis the term net social benefit refers to A private benefit plus social benefit. B social benefit minus private benefit. C soc...
A government school is built by private builders in a residential neighbourhood. The builders ignore the effects of noise and disturbance. Why does...
In all market structures, what must firms equate to ensure allocative efficiency? A average cost and average revenue B average cost and marginal re...
In the diagram a consumer's budget line shifts from JK to GH. [Figure 4.1] Which statement must be correct? A There has been an increase in the con...