Cambridge Past Paper Questions

The following are four conditions sometimes attached to IMF loans to developing countries. Which condition would conflict with the 'infant industry...

In which exchange rate regime would the central bank of a country be best able to pursue an independent monetary policy to control the rate of infl...

What is measured on the vertical axis of the Phillips curve?

Workers in poor countries are often less productive than workers using the same technology in rich countries. What would be most likely to remedy t...

What is not an example of an externality? A A new firm is established in an area and pays its workers higher wage rates than other firms. B The flo...

The diagram shows the long-run equilibrium positions for two firms, X and Y. price firm X LRMC LRAC Px AR=MR Ο qx quantity Py firm Y LRMC LRAC MR ...

The production of a good creates a constant marginal external cost at all levels of output. What value of price elasticity of demand for the good w...

What arises in situations where there are costs or benefits associated with a transaction that are not fully reflected in market prices? A allocati...

To maximise the satisfaction she derives from a given level of expenditure on two goods, X and Y, how should a consumer allocate her expenditure be...

The diagram shows the indifference curves (IC) for a consumer for goods X and Y together with the consumer's budget lines (BL). good X IC IC₁ BL BL...

The price of brand X is $2 and the price of brand Y is $1. The consumer has $20 income to spend on these brands. Which combinations of the two bran...

The diagram shows an industry's demand and supply curves. The industry increases supply from S₁ to S2. price V W X y S 1 S2 quantity Which area sho...

Which diagram accurately represents the revenue curves of a producer in imperfect competition? cost, revenue cost, revenue A cost, revenue TR B TR ...

The diagram shows the cost and revenue curves of a firm in a contestable market. cost, revenue P 1 P P2 P 3 P4 P 5 MR AC MC AR Ο Q1 Q5 Q2 Q3 Q4 qua...

The table shows details of mergers (purchases and sales) involving UK companies in 2015 and 2016. transactions abroad transactions in the UK by UK ...

What would explain an increase in the size of an industry and a fall in the average output of the firms in an industry? A an advance in communicati...

Which characteristic would make it easier for firms in an industry to collude? A a large number of firms B homogenous products C low barriers to en...

A fashion model is paid $500000 a year. If the next best paid job he could get is as a teacher at $100000 a year, what are his transfer earnings an...

Wages in industry X are significantly higher than in industry Y. What could explain this difference? A Workers in industry Y are highly mobile. B T...

Good X is a popular product that creates a negative externality when it is consumed. Good Y is a more expensive substitute for X with fewer negativ...

Which changes in direct and indirect tax are likely to increase the inequality in the distribution of income in a developed economy? direct taxes i...

A city has a problem with litter on its streets. The city council is considering several measures to reduce the litter. Which measure to reduce lit...

The government wants to regulate the consumption of a demerit good in order to increase society's net welfare. In which situation will society's ne...

In 2015 New Zealand had a real Gross Domestic Product per capita of $34 762. Why might this figure not be a good indicator of living standards? A F...

'The United Nations Development Programme states that economic growth and development will not reduce poverty, improve equality, generate jobs and ...

The table shows information about employment in a country. year numbers employed 2012 10 m 2017 11 m unemployment rate (%) 2 10 What can be conclud...

Which type of unemployment results from industrial reorganisation due to technological change? A cyclical unemployment B frictional unemployment C ...

During a year, a country's national income in money terms increased by 5%, prices increased by 4% and the total population increased by 2%. What wa...

Commercial banks in a country hold $50 million in cash but have created $600 million deposits. The central bank raises the cash deposit ratio to 10...

According to Keynesian theory, in which circumstance would there always be an increase in the demand for money? real income price level interest ra...

A country decides to abolish its tariff on imports of copper from Zambia. Under which circumstances would this benefit Zambia? A The income elastic...

A small island economy imports most of its raw materials and demand for its exports is price-elastic. What would be the most likely effect of an ap...

What will be most likely to rise if unemployment is increasing in an economy? A the human capital of unemployed workers B the living standards of a...

The table gives some economic indicators for four countries. Which country is closest to achieving the principal aims of government economic policy...

Growth and the uncertain economic system Competition and a market economy support industrialisation and create higher living standards. The collap...

'Competition is an essential element of an efficient market economy. If there is a monopoly then there is no competition. Monopolies exist in all e...

'The Human Development Index (HDI) is a more useful indicator of changes in living standards than changes in Gross Domestic Product (GDP) but it st...

The Economic Outlook for Japan In 2017, the forecast of the Bank of Japan (the country's central bank) was that Japan's economy was likely to enjoy...

'Free markets make the most efficient use of resources and are the foundation of a successful economy.' To what extent do you agree with this?

Evaluate how the relative size of injections into and leakages from the circular flow of income can affect the ability of a government to achieve i...

Discuss whether countries at different stages of development should use different methods of measuring living standards.

Production, living standards and market failure Today, the average person lives better than they did fifty years ago. Two reasons are given for thi...