Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
Kelp (or seaweed) farming is the practice of cultivating and harvesting seaweed. Farmers gather the kelp from natural beds in the sea. This farming...
Evaluate the effectiveness of SH's marketing strategy between 2017 and 2025.
Advise Sarah on whether PEST analysis is the most useful approach for SH in developing a new business strategy.
Firms can grow internally or externally. What is a characteristic of external growth?
The diagram shows a firm's cost and revenue curves. [Diagram] The firm embarks on a successful $100 million advertising campaign. How will this aff...
What would encourage an increase in the number of small firms?
The diagram shows a firm's cost and revenue curves. [Diagram] The firm changes its objective from sales revenue maximisation to profit maximisation...
The firms in an industry decide to collude informally and follow a price leader. What will reduce the likelihood that the collusion will succeed?
The theory of contestable markets can be applied to
According to the law of diminishing returns, what happens as more of a variable factor is combined with a fixed factor?
Firm X is considering whether to co-operate with its rival so that their joint profit is $4000 a month ($2000 each). It calculated that, if it did ...
Governments intent on improving living standards for individuals with low incomes sometimes impose rent controls (maximum prices) on houses rented ...
In certain countries benefits are provided to individuals on low income. As their income rises the benefits are reduced and income tax has to be pa...
What would help a trade union to negotiate an increase in the wage rates of its members without causing a reduction in the numbers employed?
An increase in the world price of oil increases the demand for deep sea divers from D₁ to D2 as shown. [Diagram] What is the change in the economic...
The table gives unemployment rates (%) for four countries in 1993 and 2002. UK Japan France Italy 1993 10.5 2.5 11.4 10.1 2002 5.0 5.4 8.8 8.5 Wh...
The diagram shows the saving and investment curves of a closed economy with no government. [Diagram] The potential level of output is OYp. Which di...
The table shows the values of selected macroeconomic variables over a two-year period. year 1 ($m) year 2 ($m) investment 250 350 saving 280 340 g...
What will cause a fall in the quantity of money demanded?
What is not included in the measurement of national income?
Which row correctly identifies net injections into a country's circular flow of income?
Rapid economic growth is claimed by some to harm the environment. Which outcome would not harm the environment?
A country has labour shortages in some areas and high unemployment in others. Which government policy would help remove this imbalance?
Which is likely to hinder a supply-side stimulus to the economy?
What is most likely to influence subsequent increases in national income as a result of a government policy of reduced interest rates?
What might influence the ability of a government to use income taxation to redistribute income from richer to poorer groups?
In an economy no one can be made better off without making someone else worse off. What can be deduced from this? A Individuals are the best judges...
In 2015, a large mining company said it would reduce the number of staff by 6000 and sell its less profitable mines in an attempt to become more ef...
The production of a firm which operates in an imperfectly competitive market gives rise to external production costs. Which statement about this fi...
In the UK in 2015 there were two methods of charging for water supply. 1 a fixed charge giving the consumer the right to consume water at zero pric...
The diagram shows the cost curves for a firm. price MC ATC AFC Q1 Q2 output What does the firm experience as it increases output from Q₁ to Q2? A d...
Firms X and Y merge in a horizontal integration. What must be true about the industry and the stage of production in which X and Y operate? indust...
In the diagram the curve TC shows the relationship between a firm's total costs and its level of output. total cost TC R P O Q output At output OQ ...
Which diagram shows the total revenue function for a firm in perfect competition? A TR revenue Ο output B revenue TR Ο output C TR revenue Ο output...
Many public utilities can be described as 'natural' monopolies. Which statement best describes the situation leading to a 'natural' monopoly? A The...
Increased advertising by a firm in an imperfectly competitive industry leads to an increase in demand for the industry's product but a fall in the ...
An industry consists of a dominant firm, which acts as a price leader, and a large number of small firms. Which statement about the profit-maximisi...
There are two firms in an industry. Firm X faces a choice. It can either act independently or work with its rival. If it acts independently its pro...
What explains the kinked demand curve model of price rigidity in oligopoly? A collusion between all firms in the industry in the setting of prices ...
Which policy is not designed to correct a market failure? A government provision of health care B removing import quotas C price controls on large ...
A tax system allows people to earn a certain sum of income free of income tax. On income above this level, tax is levied at a constant rate. Which ...
What is the best example of nudge theory as applied to the prevention of tax evasion? A employing an extensive administration to ensure detection o...
In many countries it has been observed that, when high marginal rates of income tax imposed on richer groups are reduced, the tax revenue raised in...
The diagram represents the market for labour. wage W N D S₁ 1 S2 number of workers What would be the effect on transfer earnings and economic rent ...
How might real GNP per head be adjusted to make it a more reliable indicator when comparing standards of living in different countries? A adjustmen...
Which combination of circumstances is most likely to lead to an increase in a country's budget deficit? total GDP | unemployment | discretionary g...
To combat a rising crime rate, the government decides to recruit additional police officers who are paid a wage equal to that which they previously...
What could not exist in a closed, mixed economy? A a balance of trade deficit B a budget deficit C household debt D national debt
What does the accelerator principle state? A Consumption is a function of the rate of change of income. B Income is a function of the rate of chang...
What would not be classified as structural unemployment? A a car worker who is replaced by a robot on the production line B a coal miner whose mine...