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.
What is the real exchange rate?
An appreciation of country X's currency leads to an increase in its foreign currency earnings from tourism. What can be concluded from this about t...
In the diagram, curves D₁ and S relate to the demand for and supply of £ sterling in the foreign exchange market. [Figure 29.1] What may cause the ...
A government uses monetary policy to manage its economy. Which sequence correctly describes the most likely consequence of an increase in the count...
In 2007 there was a worldwide shortage of oil. The diagram shows the consumption and production of oil (billion tonnes) in 2007 for selected countr...
What is necessary for effective specialisation?
The change from WX to YZ in a country's production possibility curve is shown. [Figure X.X] What could have caused this shift?
Recently, thousands of ancient Roman coins were discovered buried in a field in the UK. Funds were raised by a museum to buy them. What function of...
What describes a market supply curve?
The demand curve for new cars in a country shifted to the left. Which change could have caused such a shift?
The table gives estimates of the price elasticities and cross elasticities of demand for bus and rail travel. [Figure X.X] What would be the change...
It has been estimated that bread has an income elasticity of –0.04. What can be concluded about bread from this information?
Sx, Sy and Sz are the supply curves of goods X, Y and Z. [Figure X.X] If the price of all three goods rises from $5 to $10, what are their price el...
A US study, published in July 2014, warned teenagers to reduce the amount of fizzy drink they consume. One can of fizzy drink contains an adult's e...
In the diagram, the supply curve shows the number of spaces in a car park and the demand curves show the demand for spaces on four different days (...
The diagram shows the demand curve and supply curve for a good on which the government imposes a specific tax. [Figure X.X] What will be the result...
The diagram shows a consumer's demand curve for a product. [Figure X.X] How does consumer surplus change as the price of the product rises in $5 st...
The diagram shows demand and supply curves for a good. S₁ is the original supply curve, S2 is supply after a tax is added. [Figure X.X] How much ta...
In the diagram, DD is the demand curve for an agricultural commodity, S₁ is the supply curve in period 1 and S2 is the supply curve in period 2. Th...
A government decides to privatise a nationalised company by transferring ownership directly to its managers and workers. What is its most likely mo...
In 2012, high street shops reported a fall in sales as domestic demand in an economy fell. However, the impact on the overall economy was not as un...
An economy is initially in equilibrium at point X in the diagram. [Figure X.X] The government then introduces a supply-side policy measure which ca...
A country experienced an annual deflation rate of 2% for four successive years. Which statement is correct for the four-year period?
In July 2013, orders for durable US manufactured goods from computers to aircraft fell 7.3%, the biggest fall for a year. What might explain this c...
The following exchange rates were recorded in the foreign exchange market. £1 = €1.208 $1 = €0.727 €1 = $1.375 Within which range of values should ...
Between 2005 and 2010, a country's import prices rose by 25% and its terms of trade rose to 120 (2005 = 100). Which change has there been in the co...
The diagram shows production possibility curves for two countries, X and Y. [Figure X.X] What can be deduced from the diagram?
What is not associated with greater economic integration between countries?
Which statement is not a valid justification for an import tariff?
An increase in interest rates is an example of which type of policy?
Which policy, adopted by a government with the intention of reducing the rate of inflation, might cause a greater deficit on the balance of payments?
Scarcity means that goods need to be rationed between competing consumers. Which basis for rationing is the most likely to result in the most equal...
In which aspect is the planned economy likely to offer more than the market economy?
Line XX is the production possibility curve (PPC) of a worker picking peas and beans in a 10 hour working day. [Figure 3.1] What would cause the wo...
Four students are given the following list of assets. • a three bedroom house • banknotes and coins in a purse • money in a bank savings account • ...
How would an economist establish the market demand curve for a private good?
D₁ and S₁ are the initial demand and supply curves for a normal product. They then change to D₂ and S₂. [Figure 6.1] Which pair of changes would re...
The table gives a set of price and cross-price elasticities for four commodities, W, X, Y and Z. [Figure 7.1] Which pairs of commodities are comple...
The price elasticity of demand for a product is constant and equal to unity. Which curve in the diagram shows the relationship between total expend...
A bottle making business announced it had introduced a new production system. As a result the quantity produced per week could be increased or redu...
The supply function for a good can be written as Q = 2P + 10, where Q is the quantity supplied in kilos and P is the price per kilo in dollars. The...
A local government is deciding whether to increase parking charges and provide more lanes for bus use only. One official said that the increase in ...
What would prevent the operation of the market mechanism's rationing function?
The diagram shows the demand and supply curves for a good during a certain period. The market price is shown by P and the quantity traded by point ...
A specific tax is placed on the sale of bottles of lemonade. In the diagram, SS is the supply curve before imposition of the tax and S₁S₁ is the su...
A market is in equilibrium at point X. The government then subsidises both consumers and producers by direct payments. What will be the new equilib...
Which is a transfer payment?
What is an example of direct public provision of goods and services?
What would supporters of a nationalised public transport service expect to be the most likely outcome from the privatisation of train and bus servi...
The diagram shows a shift in the aggregate demand curve of an economy from AD₁ to AD₂. [Figure 19.1] What could have caused this shift?