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.
Butter and buttermilk are goods in joint supply. Supply curves in both markets slope upwards to the right. Health concerns cause people to reduce t...
The diagram shows the demand and supply of a good. [Figure: standard supply and demand diagram with areas X and Y]
Why do some local governments subsidise the provision of bicycles to encourage their use?
The table shows Gini coefficients for both income and wealth in two countries. [Figure: table with Gini coefficients]
The table shows selected information from a country's national accounts. [Figure: table of national accounts data]
The graphs show the changes in the exchange rates of the pound sterling (£) against the US dollar (US$) and the euro (€) between the years 2001 and...
Which statement about the circular flow of income is correct?
The graph shows a country's average annual inflation rate over a five-year period. [Figure: line graph of average annual inflation rate]
In an economy, wages and prices are both rising but wages are rising faster. Which features are likely to exist in this economy?
The diagram shows the aggregate demand (AD) and long-run aggregate supply (LRAS) curves for a country. X is the original equilibrium position. In o...
What is most likely to cause a rise in a country's exchange rate?
Which change affecting the foreign exchange market for the US$ would be most likely to result in a shift to the right of the demand curve and a mov...
What can be best understood from a knowledge of a country's terms of trade?
A company produces goods for export only. Which change could cause a rise in the price of its goods while the quantity sold is unchanged?
Under which current conditions will supply-side policy measures be most likely to achieve a country's key macroeconomic goals?
Why might a government prefer to use floating exchange rates?
What is least likely to rise as a result of the use of expansionary fiscal policy?
The table shows GDP indices for a country over a three-year period. [Figure: table with GDP indices]. Inflation and economic growth are two macroec...
A government raises interest rates to improve the current account of the balance of payments. What might reduce the effectiveness of this policy?
Why does a production possibility curve exist for every economy?
Which statement is a normative statement?
Which combination best describes the basic economic problem?
What is the main reason an economy is unlikely to rely completely on market forces to allocate resources?
What is the opportunity cost to a person of spending $20 on a new pair of sports shoes?
What is the definition of effective demand?
The price elasticity of demand for good X is −2.4, its income elasticity of demand is -0.4 and the cross elasticity of demand for good X with respe...
The diagram shows two straight line demand curves, X and Y. [Figure 8.1] What is correct about curves X and Y?
The price elasticity of the supply of yoghurt is estimated to be +1.5. If the demand for yoghurt rises and price rises by 20%, how much more will b...
Butter is a normal good. It is in joint demand with bread and in joint supply with buttermilk. The demand for butter increases because of a rise in...
The diagram shows a competitive market in equilibrium with price P and quantity Q sold. [Figure 11.1] Which area represents the producer surplus?
A policy that aims to reduce the degree of inequality of income will also reduce the level of employment in a country. What is most likely to be su...
What explains the underconsumption of merit goods?
A country uses an income tax under which the first $10000 of income is tax-free, the next $20000 is taxed at 20% and any income over $30000 is taxe...
The table shows real GDP expressed as an index number in each quarter of 2021. [Figure 15.1] What can be concluded from the table?
What is least likely to cause a simultaneous increase in demand-pull and cost-push inflation?
According to the circular flow of income, what would be the immediate result of an increase in the value of a country's exports?
To calculate the unemployment rate, the number unemployed is related to
Aggregate demand in an economy may decrease as a result of an increase in
A government has a balanced budget. It decides to increase its spending by 10%. Which increase in government revenue would produce a budget surplus?
An economy has an unemployment rate of 8%, an increase of 2% from the previous year. At the same time, the current account deficit rose from 3% of ...
The diagram shows aggregate demand (AD) curves for an economy. [Figure 22.1] Which combination is most likely to have caused the shift from AD₁ to ...
What can be considered an expansionary supply-side policy?
The table indicates the factor inputs required to produce wheat and cars in countries X and Y. [Figure 24.1] What makes it possible for both countr...
A government decides to allow the country's currency to depreciate to remove the deficit on its current account of the balance of payments. What is...
When must the terms of trade of a country change?
The table shows an extract from a country's balance of payments. [Figure 27.1] What is the current account balance?
The table shows the goods balance and services balance for a country in selected years. [Figure 28.1] Between which years did the overall goods and...
The diagram shows the market for both domestic and imported computers for an economy. The world price is p₁. [Figure 29.1] Which government policy ...
What is not a likely cause of a deficit in the current account of the balance of payments?
Which statement about a market economy is not correct?