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.
Which statement about a rise in the general price level in a country is correct?
A country's terms of trade changed from 100 to 95. What is most likely to have caused this change?
A country replaces a floating exchange rate system with a managed floating exchange rate system. Which statement is correct?
What will be the immediate effect of a devaluation of an economy's foreign exchange rate?
A country has a deficit on the current account of its balance of payments. What might help the country to reduce its deficit?
The diagram shows the effect of removing a tariff on imports of good X into country Y. [diagram] What is the volume, in million units, of the extra...
Which item should be recorded in the financial account of a country's balance of payments?
The table shows a country's consumer prices index (CPI) for March and April 2018. CPI March 2018 151.3 April 2018 148.6 Which statement correctly d...
The diagram shows the rate of inflation over time in four countries. Which country has a rising real value of money over time? [diagram]
The table shows the consumer prices index (CPI) for an economy expressed as an index number. year CPI 2016 100 2017 103 2018 101 2019 97 Which acti...
Other things being equal, what is most likely to be reduced by falling labour productivity?
A government spends money building more schools. How might this be classified? fiscal policy supply-side policy monetary policy
A production possibility curve shows the combinations of outputs an economy can produce using all available resources. At which points on the diagr...
What is a normative economic action based on?
Which function of money overcomes the double coincidence of wants problem that exists in a barter system?
The production possibility curves (PPCs) show the abilities of four economies to produce wheat and rice. Which PPC has the lowest opportunity cost ...
The diagram shows a supply curve for chicken. What explains why the supply curve for chicken slopes upwards? [Figure 5]
The diagram shows the demand and supply curves for cars in India. The initial equilibrium is at X. What will be the new equilibrium if there is a s...
Demand curves are drawn ceteris paribus. Which 'other things' are not required to remain the same when an individual's demand curve for ice cream i...
What is the measure of cross-elasticity of demand for good X in terms of good Y?
When will the price mechanism be least likely to reallocate resources to meet a change in consumer preferences?
A firm estimates that the price elasticity of supply of its product is +1.5. What does this indicate?
The diagrams show the effect of a change in the market for good X on the market for good Y. What is the most likely relationship between the two go...
To improve its financial position, a government decided to reduce expenditure on investment in the public sector. There was not a fall in economic ...
What are the effects of a government imposing a maximum price below the equilibrium price? [Figure 15]
The National Library Board of Singapore is a public sector organisation that finances and manages the state libraries. What is the most likely reas...
Three types of tax are listed. • a sales tax (VAT) on fuel • a specific tax of 10% on cigarettes • the percentage of income tax on individual earni...
The bus fare in a rural area is $5 per journey. The government decides to improve local transport by giving bus firms a subsidy of $2 per journey. ...
The diagram shows the annual consumer prices index for Japan over the years 1990–2010 inclusive. In which period did Japan experience both inflatio...
A government removes its quota on imported laptops. Assuming a normal demand curve and upward-sloping supply curve for laptops, what are the likely...
The terms of trade index for Mauritius fell from 111.2 in the first quarter of 2018 to 106.1 in the second quarter. Which combination could have pr...
From the initial position of equilibrium shown, there is an increase in government expenditure on goods and services and simultaneously an increase...
The diagram shows a shift in an economy's aggregate demand curve from AD₁ to AD₂. What could not be a cause of the shift? [Figure 23]
Which item is not included in the current account on the balance of payments statement?
The prices of a country's exports rise by 5% while the prices of its imports fall by 5%. What will definitely improve in the country as a result of...
What is not a form of protectionism?
Two countries, X and Y, produce food and drink. The table shows how many hours it takes them to produce one unit of each. What will be the result i...
'Reducing the exchange rate helps to decrease a country's balance of payments deficit because it makes imports more expensive and exports cheaper.'...
An increase in which variable is a contractionary monetary policy?
What are government monetary policies that would be the most effective in a global recession?
A good is most suitable to be provided by the market if it is
What is the definition of long run?
The table states the consequences of two macroeconomic policies. What correctly identifies whether the statements are normative or positive? [Figur...
The diagram shows the production possibility curve for wheat and corn. [Figure: Production Possibility Curve]
A supply curve is represented by the equation quantity supplied = 10 + 5P where P = the price of the product. Which price rise would cause the quan...
Which diagram illustrates unitary elasticity of supply? [Figure: Four diagrams A, B, C, D, showing different supply curves]
In which case is the price system not a possible method of allocating resources?
A sports stadium has two prices of seats. The cheaper seats are $10 and the more expensive seats are $20. When the prices of all seats are increase...
Which statement correctly describes the shape of the demand curve for a normal good?
Why does the basic economic problem of scarcity apply to both the rich and the poor?