Cambridge Past Paper Questions
Browse 23,045questions from 25 years of O-Level & A-Level exams. Click any question to practice.
Which argument for protection would be most relevant if the government of country X decided to exercise voluntary export restraint in its trade wit...
The average price of a country’s exports increased by 5% and the average price of its imports increased by 10%. What can definitely be concluded fr...
There is an increase in indirect taxes. What will be the impact on demand-pull inflation and on cost-push inflation?
The table shows the number of biscuits and cakes that can be produced by four workers in an hour. Who has the greatest comparative advantage in pro...
Which condition is necessary for a country’s balance of payments on its current account to improve if it reduced its exchange rate?
The diagram shows the effect of the United States (US) imposing a tariff on the import of steel in 2018. Which statement about the impact of the ta...
In 2012, the Indian Government stated that it aimed to reduce its budget deficit to 5.1% of GDP. Which policy is most likely to help this aim in th...
What would make a policy of raising interest rates less likely to be effective in reducing inflation?
Country X is an open economy with a floating exchange rate. It changes to a fixed exchange rate. Which combination of policy changes would be most ...
In a planned economy, what will determine the allocation of scarce resources?
A key concept in classifying goods is whether a good is rival or non-rival. Which good is rival in consumption?
What is a normative statement?
The diagram shows an economy's production possibility curve (PPC). The economy has moved from X to Y. What can be deduced from the diagram?
An indirect tax is imposed on a product, causing total expenditure by consumers to increase. Which row identifies this situation?
The price elasticity of the supply of yoghurt is +1.5. If the demand for yoghurt rises and price rises by 20%, how much more will be supplied to th...
The diagram shows the market demand for and supply of a good. Which statement is not valid?
The diagram shows two linear supply curves labelled S₁ and S2, where S2 is a 45° line. Which statement about the price elasticity of supply is corr...
A country has health care provided by the free market. This is replaced by the government provision of Sg free health care. What is the change in c...
What is an example of a product in joint demand with a smartphone?
A product has a high price elasticity of supply. What might explain this?
What is likely to affect the position of the demand curve for tickets to pop concerts but not the position of the supply curve?
The table shows Lee's and Yim's price elasticity of demand for restaurant meals and cinema tickets. There is a rise in the price of both products. ...
A government fixes a maximum price for a product in order to increase its consumption. What would be the likely outcome of such a policy?
What is a transfer payment?
What best illustrates the process of privatisation?
An increase in what will shift the aggregate demand curve in an economy to the right?
Which effect of inflation is described as redistributive?
In which situation will a country's terms of trade improve?
Country X joins a customs union with country Y and will remove the tariff on its imports of good M from country Y. Under which conditions will trad...
What is likely to happen if there is a fall in the international value of a country's currency?
From the same quantity of factors of production, country X and country Y each produce the following units of output. Which statement is correct?
Following a 10% depreciation in the $ value of the £ sterling, a UK exporter leaves the $ price of the goods it sells in the US market unchanged. O...
The diagram shows the effect of introducing a tariff on a product. What determines the producer surplus that the tariff generates for domestic prod...
Which government policy is most likely to cause expenditure switching that will benefit a country's current account?
Which type of economic policy is likely to be considered the most effective by a government that has greater income equality as its primary aim?
PPC is the production possibility curve in country T. Which changes take place in country T's opportunity costs of producing X as it increases prod...
What is considered the essential requirement for all entrepreneurs?
A new section of a road is provided toll-free by the government. What best describes this good?
Eastern European nations have changed from planned to market economies. Which policy was least likely to have been adopted?
Rice and pasta are both basic foods in a country. How would a health scare concerning rice affect the market for pasta?
Some goods are over-consumed in a market economy. What is likely to be the cause of this?
A family is willing to pay a maximum of $600, $500 and $400 for air tickets for the mother, father and daughter to attend a wedding in another city...
After a 10% decrease in a consumer's income, the consumer's demand for a good rises from 100 to 105. What is the value of the consumer's income ela...
In 2010, poor harvests reduced fruit crops and furniture producers gave big discounts on furniture products. How might these changes have affected ...
In the diagram, D and S represent the demand for and supply of smartphones. Many components used in the production of smartphones are imported. The...
The diagrams show the demand for and the supply of houses. In the short run, the stock of houses for sale, S₁, is fixed. A government decides to al...
The equation for the quantity demanded, QD, for a product is QD = 400-20P where P = price in $. The quantity supplied, QS, is given by QS = 100 + 4...
What is the most likely cause of the continuous increase in prices of famous paintings by now dead artists?
What is most likely to be regressive?
The government imposes a specific indirect tax of $1 on each unit of a good sold. How does the imposition of the tax shift the demand or supply cur...