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.
A government is concerned that foreign-owned companies are responsible for a high proportion of the economy's output. Therefore it nationalises tim...
What will definitely lead to an improvement in the terms of trade?
In the diagram Sd is the domestic supply of a product, Sw is the world supply and Dd is the domestic demand for the product. After operating a free...
The diagram shows the value of the Nigerian naira against the US dollar between June 2015 and June 2016. Which term is used for the change in the v...
Countries M and N produce the world supply of machines and textiles. The table shows what each country produces when it divides its resources equal...
The diagram shows an aggregate supply curve, and aggregate demand curves. What would cause a decrease in aggregate demand from AD₁ to AD2?
Two countries trade with one another without any forms of protection. They also impose a common external tariff on the imports from all other count...
The terms of trade of a developing country fell from 90 in 2010 to 80 in 2015. Assuming the index of its import prices remained constant at 110 bet...
Which type of import control allows a country to develop a potential comparative advantage in a particular good?
The diagram shows aggregate demand (AD) and aggregate supply (AS) in an economy. The initial equilibrium is at point E. What causes shifts in the a...
Which action might be part of an expansionary economic policy?
A government is faced with rising inflation. It wishes to reduce inflationary pressure while avoiding a fall in output. Which action is most likely...
Why may a government seek to reduce a current account surplus on the balance of payments?
Poland: a growing economy Extract 1: Poland's successful transition from a planned economy Since 1995, Poland has grown faster than all other larg...
Section B Answer one question.
A project has a social cost of $100 million, a private cost of $40 million and an external benefit of $20 million. Its net social value is zero.
The diagram shows the cost and revenue curves for a firm. [Diagram showing price and quantity axes; MC, AC, MR, AR curves; price levels A, B, C, D ...
A government is considering improving the rail links in its country. It also has to choose one of four high-speed routes. The benefits and costs o...
The table shows the total utility gained by a consumer as they consume more apples. apples consumed total utility 0 0 1 10 2 18 3 24 4 28 5...
In the indifference curve diagram point M is the consumer's initial equilibrium, JK and JL are budget lines and MN is the substitution effect of a ...
Selina has an income of $100 and buys food and drink. The price of a unit of food is $2 while the price of a unit of drink is $1.
The diagram shows a profit-maximising monopolist. [Diagram showing cost, revenue axes; MC, AC, MR, AR curves; output and cost/revenue levels R, S, ...
The goal of firm X is to make a minimum acceptable level of profit.
A monopoly firm makes only normal profit in the long run.
The diagram shows the average fixed cost (AFC), average variable cost (AVC) and average total cost (ATC) curves faced by three firms X, Y and Z. Dₓ...
When a firm increases all its inputs fourfold, its output increases threefold.
What represents the transfer earnings of the factor enterprise?
A country has a negative income tax. The curve NT in the diagram shows the country's initial tax schedule. [Diagram showing tax and income axes; l...
In which labour market diagram is the economic rent of workers greatest? [Four diagrams (A, B, C, D) showing wage and labour axes; supply (S_L) and...
Which statement about government intervention is correct?
The government introduces a minimum wage above the equilibrium market wage rate.
The diagram shows the market for a good that creates a negative externality in production and no positive externalities. The current level of consu...
The diagram shows a production possibility frontier, PPF₁. The economy is initially at point X. [Diagram showing capital goods and consumer goods a...
The information in the table is taken from a country's national income accounts. $ million consumer expenditure 250 investment expenditure 100 ...
Which source of income is not included in measuring real GDP?
Which adjustments to real GNP per head might make it a more reliable indicator when comparing standards of living in different countries?
What does the Kuznets curve represent?
In an open economy with a government sector, the marginal propensity to import is 0.3, the marginal propensity to tax is 0.3 and the marginal prope...
The information in the table is taken from a country's national income accounts. $ million national income 600 consumer spending 400 investment...
The central bank of a country creates cash to purchase government bonds from the commercial banks.
Which row shows characteristics of a fast-growing emerging economy? GDP per head birth rate household saving ratio A falling falling rising B ...
Which policy is likely to increase unemployment?
A government in a developed economy wishes to reduce cyclical unemployment.
An economy adopts an expansionary monetary policy to boost employment. A result of this policy is that the consumer price index rises at an acceler...
In country X the government aims to protect jobs.
Downturn in the growth of the world's leading economies In February 2016 there were dramatic changes in both financial and commodity markets across...
'Governments should use whatever methods they can to regulate monopolies because they are inefficient.' Consider whether monopolies are always inef...
Explain why indifference curves are usually drawn convex to the origin, are downward sloping and do not cross each other.
Analyse whether there is a link between the marginal cost of a firm and (i) its variable cost; (ii) the supply curve of the industry to which the f...
According to economic theory, what is the significance for a firm in a perfectly competitive labour market of a worker's marginal product and avera...