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.
To increase production, a firm in industry X needs to install capital equipment, while a firm in industry Y needs to research and introduce a new t...
The production possibility curve shows the maximum potential output of apples and pears for an economy using current resources. [Figure showing a ...
The price of a good rises by 5% and the quantity of it demanded rises by 3%. At the same time, the incomes of consumers of the good rise by 4%. Th...
When is division of labour likely to be most effective?
What will influence the value of the price elasticity of supply of a good?
The diagram represents the market for a good. [Figure showing a demand and supply curve with points P, S1, X, Y, D1, Z, O and quantity] Which sta...
The diagram shows the impact on equilibrium due to an increase in the costs of production. The original price is $72. The price elasticity of deman...
What is likely to have a greater effect on an individual demand curve than on a market demand curve?
The quantity demanded of a product is given by QD = 400 – 10P, when P is the price in dollars. Supply of the product is fixed at 100 units. If the...
A decrease in the quantity demanded of a product results in a proportionate decrease in sales revenues. What is true about its price elasticity of...
A government may use a range of methods to intervene in a market to affect both demand and supply. What is a method which will shift the demand cu...
To help achieve price stability, the government in country F operates a buffer stock scheme, with a minimum price of P₁ and a maximum price of P₂. ...
Why is it more difficult to quantify the wealth of an individual rather than their income?
The table shows the Gini coefficient for income in three countries. 2018 2019 2020 Costa Rica 0.479 0.478 0.497 New Zealand 0.330 0.326 0.320 Swed...
Governments may have price stability as a macroeconomic objective. What is meant by price stability?
In country S, frictional unemployment has decreased, but in country T, structural unemployment has increased. What would be possible explanations ...
The diagram shows aggregate demand (AD) and long-run aggregate supply (LRAS) with X as the initial equilibrium. [Figure showing LRAS, LRAS1, AD, A...
The money income of a country rises by 10% whereas its population falls by 10% during a year. What is likely to happen to the national income per ...
High economic growth is often accompanied by a worsening of the current account of the balance of payments. Which reason for this trend is not valid?
A government cuts income tax. Why might this be seen as an example of a supply-side policy?
Which combination of fiscal policy measures will reduce both the inflation rate and income inequality? direct taxes indirect taxes subsidies on fo...
A country's central bank decides to reduce the level of credit regulation. What is this an example of?
A government decides to use supply-side policy to increase long-run aggregate supply (LRAS). What is the most likely reason why this policy tool w...
What defines a progressive tax?
Country X trades with country Y. What are the terms of trade for country X?
When is a country's exchange rate most likely to fall?
A country experiences a rising trade deficit and a current account surplus at the same time. Which combination of events might explain this? Even...
The diagram shows the production possibilities for barley and wheat in countries Q and R. [Figure showing two PPCs for country Q and country R, wi...
The diagram shows the impact of a government introducing an export subsidy for its domestic producers of oil. [Figure showing domestic supply, dom...
The diagrams show the change in a country's production possibility curve between Year 1 and Year 2. What can be deduced from the diagrams?
Which statement about trade unions is normative?
A worker can make 10 hats or 5 pairs of shoes in a day. In the market three hats can be sold at the same price as two pairs of shoes. The worker sh...
The table shows the market supply for a raw material and the individual demand firms, X, Y and Z, which are its only buyers. What is the equilibriu...
In 2008 the demand curve for new cars in the European Union shifted to the left. Which change could have caused such a shift?
Worldwide, the film industry has increased its expenditure to over $1 billion each year on successful anti-piracy measures which it finances by cha...
The demand for a commodity has unitary price elasticity. Which diagram shows the relationship between total expenditure on the commodity and its pr...
The table gives information about the market for two models of car. If the prices of the cars remain unchanged, but the price of petrol increases b...
In 2008 a disease killed a significant number of sheep used to produce wool. How would the short-run effect be shown on a demand and supply diagram...
The government imposes a maximum price of P2 on a product. [Figure shows a standard demand and supply diagram with price P1 and quantity Q1 at equi...
The diagram shows a demand curve for journeys on a toll road. If there is a reduction in the toll from $5 to $3, what is the resulting increase in ...
What does not happen when price acts as a means to allocate resources?
James grows fruit trees in his garden. They attract butterflies and bees. What is not an externality of this?
The table shows some of the costs when a firm produces a good. What is the additional cost to a firm of producing the 24th unit?
What makes it particularly difficult to take decisions using cost-benefit analysis?
Which good is excludable but non-rival?
The diagram shows the demand and supply curves of a good. The government sets a maximum price of OJ for the good. How will this affect the consumer...
The diagram shows production possibility curves for two countries, X and Y. What can be deduced from the diagram?
The statements that follow relate to possible gains from an increase in free trade. Which gain is least certain to result?
A group of countries decides to change from being a customs union to being an economic union. What additional feature will this give the group?
The table shows the balance in $ million for four items in a country's current account for two years. What can be concluded about the changes betwe...