Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
The diagram shows a profit-maximising firm's cost and revenue curves. [Figure: Diagram showing cost, revenue on y-axis, output on x-axis, with curv...
What must be different between the consumers of a product to enable profitable price discrimination by the producer? A levels of income B price ela...
An example of forward vertical integration for a computer manufacturer would be a merger with A another computer manufacturer. B a computer retaile...
The diagram shows the short-run cost curves and the long-run average cost curve for a firm. [Figure: Diagram showing cost on y-axis, output on x-ax...
A cartel has been successful in regulating output. However, recently it has shown signs of breaking up. Which feature of the market could have caus...
What would be most likely to allow the survival of small firms in an economy? A an increase in the cost of borrowing from commercial banks B an inc...
A private company operates a coal mine which employs 400 workers. The mining operations have polluted the environment and created external costs. I...
What is an advantage of using tradable pollution permits to control pollution? A Tradable permits are restricted to the firms to which they are iss...
Where might government intervention to raise the wages of a group of workers be justified in order to prevent their exploitation? A in an industry ...
There is a decrease in the supply of female labour. What will be the likely effect on male and female wages? male wages | female wages ---|--- A | ...
Which criteria are used in official labour market surveys to determine whether a person should be classified as being unemployed? eligible for rece...
To increase the number of cleaners at a local school from 10 to 11, the employer has to raise the hourly rate of pay from $3.00 to $3.25. What is t...
What would result in a reduction in labour costs per unit of output? A an increase in average earnings which is less than the increase in employmen...
Out of any addition to national income, 25% is spent on imports, 15% is paid in taxes, 10% is saved and the rest is spent on domestically produced ...
Which economic indicator uses the following three components to obtain a value between 0 (low) and 1 (high)? • GNI per capita • life expectancy • e...
What is not a possible benefit to a developing country of a multinational company investing in a new factory in that country? A acquiring improved ...
Which policy is best to reduce cyclical unemployment? A increase corporation tax B increase the exchange rate C reduce the budget surplus D reduce ...
A government decided to increase its expenditure on a major infrastructure project by building new roads. What would decrease the multiplier effect...
A country is in recession with unused resources. The government reduces interest rates. What do Keynesian economists believe the short-run outcome ...
The diagram shows the investment schedule of an economy. [Figure: Diagram showing rate of interest (%) on y-axis, investment on x-axis, with two do...
When will an inflationary gap exist in an economy? A when aggregate demand is greater than full employment income B when leakages exceed injections...
What is the basic assumption underlying the accelerator theory? A Investment depends on the level of business confidence. B Investment depends on t...
The table shows data on the unemployment and inflation rates for four countries in 2010 and 2014. country | unemployment rate (% of workforce) 2010...
What is most likely to be an appropriate government action to reduce both a balance of payments current account surplus and the rate of inflation? ...
In which situation are there definitely positive externalities?
A cost-benefit analysis is carried out on the construction of a hydroelectric power station. Which combination of circumstances would be most likel...
What does not pose a threat to the achievement of allocative efficiency?
The diagram shows budget lines and an indifference curve. The consumer's initial position is T. The price of good X then falls. Which combination o...
The diagram shows various combinations of apples and rice which are potentially available to a consumer. If standard indifference curves were added...
The schedule shows the short-run marginal cost of producing good X. units of X 1 2 3 4 5 marginal cost ($) 45 40 30 20 20 Given that the total fixe...
What must be found in two markets for price discrimination to be profitable?
A firm maximises its profits by maximising its total revenue. What does this imply?
Technological change reduces the minimum efficient scale of production in an industry. What is likely to result?
The diagram shows the costs and revenue for a firm in imperfect competition. Which level of output would produce only a normal profit? [Figure 10.1]
What would be a reason why small firms do not survive?
What is the implication of a dominant oligopoly following a limit pricing policy?
Transport economists estimate the price elasticity of demand for private car use is very low. What would be the most effective way of reducing road...
What would help to explain why there was a reduction in wage inequality in a country during the post-2008 economic recession?
How is marginal revenue product calculated?
A firm currently employs 30 workers at a daily wage of $50 each. The marginal cost of employing one extra worker is $112 per day. By how much will ...
In the diagram, HN is the initial supply of labour curve faced by a firm, and RM is its initial marginal cost of labour curve. What will be the fir...
Output per worker in an industry increases more slowly than the industry's total output. What could explain this?
On a diagram showing a production possibility curve, what definitely represents long-run economic growth?
When is economic growth most likely to promote economic development?
Which items in the table are classified as foreign aid? foreign direct official portfolio investment development investment assistance flows A no n...
Country X's living standards were compared with country Y's living standards using real GNP per head converted into US dollars. Country X was ranke...
In 2007 Turkey had a population of 73 m. Its labour force was 36m, of which 12m were trained for the primary sector and 24m were trained for the se...
An economy's manufacturing share of real GDP fell from 30% in 1970 to 12% in 2016. What type of unemployment would result from this?
In an open economy, when autonomous investment increases by 100, equilibrium national income increases by 300. Which conclusion can be drawn?
The diagram outlines the monetary transmission mechanism following an expansionary central bank intervention (quantitative easing). Key actions hav...