Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
The diagrams show different budget lines and consumer equilibrium choices. The consumer is in equilibrium at Q1XQ1Y. Which diagram shows the effect...
What is a characteristic of a highly contestable industry? A a reduction in abnormal profits B a substantial volume of advertising by existing firm...
The diagram shows cost and revenue curves for a firm. [Figure 8.1] The firm may seek to either maximise profit or maximise revenue. What is the cor...
The list provides characteristics of the market in which firm X operates. • Firms in the market spend a lot of money on advertising. • Firms in the...
Which statement about the 'kinked demand curve' model of oligopoly is incorrect? A The kink in the demand curve of each firm is based on expectatio...
As firm X grows in size, it specialises in a narrower range of products. Which economies of scale will the firm be less able to benefit from? A fin...
What would economists agree should be the aim of any healthcare system? A to meet all the healthcare demands of the population B to provide every p...
A producer of a good causes pollution. When will a specific tax on the production of the good be most effective in reducing output? A when there is...
Governments often aim to reduce income inequalities. The diagram shows the effects of using taxation and benefits to try to achieve this aim. [Figu...
Which government policy would not be classified as regulation? A bans on heroin and cocaine consumption B compulsory wearing of seatbelts in cars a...
The diagram shows the initial position of a labour market. [Figure 16.1] The government increases the number of statutory paid holidays to which wo...
The diagram represents the demand and supply of labour in a competitive industry. [Figure 17.1] What is true about unit of labour L when they are p...
Which combination of characteristics is usually associated with a developing country? A high death rate and low levels of productivity B high gross...
What is the best description of sustainable economic development? A a long term increase in the actual output of an economy B a long term increase ...
The table gives the percentage (%) rates of youth unemployment and total unemployment in France and the UK in 2001 and 2005. France UK youth unempl...
Which change in the labour market could cause inflation if the government adopted an expansionary fiscal policy? A a decrease in the economy's nati...
Which assumption is not made in the Keynesian model of national income and employment determination? A An increase in aggregate demand can increase...
An economist once said "if you pay people not to work and tax them when they do, don't be surprised if you get unemployment”. What is this an examp...
The table provides data for the external debt as a percentage of Gross National Income (GNI) for four countries in 2010 and 2015. external debt as ...
The following statistics are for Pakistan and refer to 2016. % GDP growth 5.7 population growth 2.0 rate of inflation 3.8 What was the approximate ...
In a 4-sector economy, consisting of households, firms, government and foreign trade, the level of national income is in equilibrium where C + I + ...
According to Keynesian theory, what will cause the rate of interest to rise? A a decrease in liquidity preference B a decrease in the level of nati...
A government finances its public sector borrowing by selling securities to the non-bank private sector. What will follow? A The budget deficit will...
When would a central bank be able to exert the closest control over the money supply of the country? A If it intervened in the foreign exchange mar...
A fall in domestic investment leads to an increase in unemployment. Which other problem might also be observed at the same time? A an increase in i...
Some multinational oil companies extracting oil in developing countries are now required to repair the damage they do to the environment. Which bes...
In an economy, no one can be made better off without making someone else worse off. What does not necessarily follow from this?
A government decided to approve a road building scheme because it was socially beneficial. In making its decision it calculated private costs at $8...
What is it called when a consumer's marginal utility is greater than the price paid for the good?
A consumer has $3 to spend each day on chocolate bars or toffee bars, which all cost $1 each. The table below shows the units of additional satisfa...
The curve JK in the diagram is a consumer's initial budget line. [Figure 6.1] Which combination could cause the budget line to shift to GH?
The diagram shows a consumer's indifference curves (IC) for goods F and G together with the consumer's budget lines. [Figure 7.1] What could explai...
A firm has the choice between five levels of output. The table shows the total cost and total revenue of producing at each output level. The firm c...
In which type of market structure are commercial banks usually found?
What is a condition for operating a successful cartel?
Which assumption is essential for a market to be contestable?
What is generally associated with the principal-agent problem?
The table shows the output of chairs at a factory when different numbers of workers are employed. number of workers 0 1 2 3 4 5 number of chairs pr...
The chart gives information about the average daily wage rate for all industries in India. [Figure 14.1] What could have caused this trend in wage ...
A country has a negative income tax regime. The curve NT in the diagram shows the country's initial tax schedule. [Figure 15.1] A change in the tax...
There is a fixed supply of skilled workers in an industry. Firms can no longer find enough workers to meet their demand for labour. What could be a...
A government is worried about the increasing monopsony power of employers in the wage bargaining process. Which policy combination is most likely t...
What is not a source of market failure?
A government regards fresh fruit and vegetables as merit goods, and subsidises agriculture to boost their production. What could be a government fa...
Which type of unemployment is associated with a deficiency in aggregate demand?
In the diagram, OP is the equilibrium level of income and OQ the full employment level of income in a closed economy. [Figure 21.1] What is the def...
What represents an injection into a country's circular flow of income?
What will be the most likely consequence of an increase in the dependency ratio?
The diagram shows a production possibility curve PPC1. The economy is initially at point X. [Figure 25.1] If the economy achieves actual economic g...
It has been estimated by the United Nations that the total external debt of developing countries has been increasing by about $425 billion each yea...