Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
Discuss how economic theory analyses wage rate determination. Consider if the theory can be used to explain the fact that the highest pay is often ...
The Kuznets curve was based upon empirical evidence and it supports the hypothesis that as an economy develops, market forces first increase income...
What is correct about scarcity?
Which labels might be used on a production possibility curve diagram?
A good’s defining quality is that its consumption by one person prevents its consumption by someone else. How is this good classified?
Which is a normative economic statement?
The price of a ticket for an international athletics tournament was $50. All tickets were sold. Which area on the diagram represents consumer surpl...
Market demand curves normally slope downwards. They may also shift from D₁ to either D2 or D3. What would cause a movement along D₁ for good X and ...
What is not a function of the price mechanism?
A government introduces a maximum price above the market price. What will be the effect on consumer and producer surplus?
The diagram shows the market for air travel in Asia. The initial market equilibrium is at X. What will be the new equilibrium if the price of aviat...
A government increased a specific tax on shoes. The resulting increase in the price of shoes was paid mainly by the consumer and not by the produce...
The diagram shows supply and demand for a good. The original equilibrium is X. What will be the new equilibrium if subsidies are given to firms for...
The diagram shows the market for a normal good. What is likely to cause both demand and supply curves to shift to the right? [Figure 12]
The diagrams relate to the markets for four different products. In which market would a 10% decrease in demand and simultaneously a 10% increase in...
The diagram shows three possible tax schemes. What can be concluded about these tax schemes? [Figure 15]
The diagram shows an initial market equilibrium for an agricultural product of $6 and 800 units. How much will the government have to spend to incr...
The table identifies items of government annual spending. What is the total government expenditure on transfer payments?
A subsidy is given to the producers of a good with perfectly elastic demand. What will be the outcome?
'Primary income' and 'secondary income' are components of the current account of the balance of payments. What do these represent?
The diagram shows the original aggregate demand curve, AD1, and original aggregate supply curve, AS1. The original equilibrium is at X. What would ...
What is not an example of protectionism?
The table shows the annual percentage increases in a country’s consumer prices index (CPI). Which statement is correct?
The table indicates the factor inputs required to produce wheat and cars in countries X and Y. What makes it possible for both countries to benefit...
In February 2016 the Organisation for Economic Cooperation and Development (OECD) urged major economies such as the US and Japan to increase govern...
A foreign government pays a UK university to educate its students. How would this be recorded on the balance of payments current account of the UK?
The tables show changes over a period in the average prices of a country’s exports and imports. They are expressed as index numbers, with year 0 as...
Which aim would be consistent with a government’s decision to buy its own currency in foreign exchange markets?
Which policy would assist in reducing a deficit within the balance of payments?
An economy’s current account on the balance of payments is in surplus. The exchange rate is revalued by the government. Assume the Marshall-Lerner ...
India has a vast informal economy, where products and labour are exchanged for cash without official records, so that the authorities cannot easily...
Ethiopia to develop through infrastructure investment Extract 1: Ethiopia economic overview With 99.4 million people, Ethiopia has the second larg...
BRIC is a term referring to the economies of Brazil, Russia, India and China. It originated from Jim O'Neill of Goldman Sachs who predicted that th...
It has been reported that the world demand for chocolate is increasing at a time when the supply of cocoa beans, the raw ingredient required to pro...
In March 2017, the Indian government announced a new five year programme of investment in the country's nationalised railway system.
Which situation would indicate the presence of an externality? A Producers' actions cause a shortage of a particular good. B Private motorists cont...
Building a hospital has a social cost of $200 million. The social benefit is $240 million; external benefit is $150 million. What can be concluded ...
A firm produces good X and good Y when the marginal product of both labour and capital is diminishing. The table shows the marginal products at a g...
What is equal at all points along an indifference curve for an individual consumer? A marginal expenditure B marginal utility C total expenditure D...
The diagram shows the total utility of a good for an individual consumer. Marginal utility gives a guide to the price a consumer is willing to pay....