Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
Analyse and discuss whether the economic theory of wages can explain why there are inequalities in wage rates in a country.
'There have been many attempts to measure changes in living standards both within and between countries. Although some have been more useful than o...
The diagram shows a production possibility curve. What can be deduced from the shape of this curve?
Below are two statements. 1 A rise in the price of rice is the best way to give farmers in South-East Asia higher living standards. 2 A rise in the...
What is a characteristic of money but not a function of money?
In the UK, attempts to encourage people to change from road to rail travel by the introduction of a system of road pricing were forecast to have li...
The diagram shows the market supply and demand for a good. Which area represents producer surplus?
Vanilla is an important ingredient in the production of ice cream. Between 2011 and 2018 the price of vanilla increased from about US$100 per kg to...
A government reduces income tax but at the same time raises the rate of sales tax (VAT). What are the likely effects on the demand and supply of a ...
An increase in the popularity of air conditioning units has resulted in their price increasing by 20%. In response to this the quantity supplied in...
Which change does not have an immediate effect on the position of the demand curve for a product?
A firm estimates that the price elasticity of supply of its product is 0.4. Should the firm be concerned by this figure?
A government decides to privatise a state-owned company. What should the government do to try to ensure that this will result in an improvement in ...
The graph shows an individual's income before and after the deduction of income tax. What is the marginal percentage rate of tax between $0 and $10...
In year 1, in the market for a good represented in the diagram, the initial demand and supply conditions are shown by D₁ and S₁, and the government...
What is necessary for an action to be classed as a transfer payment?
The market for good X is in equilibrium. The government introduces a subsidy to the producers of good X. Under which conditions will the total expe...
Under which combination of circumstances will a policy of increasing the money supply be most effective at moving an economy out of recession?
In which economic context is the term 'protectionism' usually applied?
The table shows an approximate summary of the current account of the balance of payments for Thailand. What is the current account balance, in mill...
The diagram shows the production possibility curves for two economies using all resources. Country X can produce 10 million cars or 20 million bicy...
A country has a balance of payments deficit. It devalues its currency. Which combination leads to a reduction in its balance of payments deficit in...
The diagram shows aggregate demand curves AD₁ and AD2 and an aggregate supply curve AS1. What could cause the shift in the aggregate demand curve f...
The government of an open economy with an overvalued currency decides to abandon its fixed exchange rate in favour of a floating exchange rate. Whi...
Devaluation always has the effect of
A government uses monetary policy and fiscal policy to solve a problem of deflation. Which policy combination is likely to be the most successful?
A government reduces its expenditure on workplace training, increases the level of indirect taxes, and reduces the rate of interest it pays on gove...
What represents the total of aggregate demand in a closed economy?
What is a function of money?
What is classified as a public good by economists?
Which statement about the factors of production is correct?
Which supply curve shows that the price elasticity of supply of the good is always equal to 1?
What could cause a shift in the supply curve of good X and a movement along its supply curve?
The market for mobile phones is initially in equilibrium at X. The government then imposes a sales tax. What is the government's total tax revenue ...
What is an example of the rationing function of the price mechanism?
In 2016 car drivers bought more fuel because the price of oil from which it was made had fallen. Which diagram represents this change in the market...
The diagram shows the demand and supply curves for bread in a developed economy. Bread is a substitute for pasta and rice. What would cause the dem...
The table shows the quantity demanded of three goods when the price of good X changes. Which relationships between X, Y and Z can be deduced from t...
The diagram shows three supply curves. What can be concluded about the price elasticity of supply of the curves?
The diagram shows the market for smartphones in India. Rising incomes in India have seen a demand for this normal good shift from D₁ to D2. Which a...
A nationalised industry is privatised. Assuming there is no change in the output of the industry in the short run, what are the direct effects of t...
What is a distinguishing feature of a progressive income tax?
Why might a government nationalise a private firm?
The diagram shows a firm's supply of and demand for apples. If a minimum price is increased from P₁ to P2 what will happen to the amount of apples ...
In an attempt to reduce crime, a government introduces a subsidy on the production of burglar alarms, but sales rise very little. Which possible ch...
Compared with Pakistan, Germany has a higher output of pharmaceuticals per unit of resources used. What could explain this?
Why is it that a country's balance of payments must always balance?