Cambridge & Pearson Edexcel Past Paper Questions
Browse 35,704 questions from Cambridge O-Level & A-Level and Pearson Edexcel IGCSE & IAL exams. Click any question to practice.
When the price of a good falls the effect on the quantity demanded is the result of an income effect and a substitution effect. Which statement abo...
Where is the long-run equilibrium output of a perfectly competitive firm?
A firm estimates that, all else remaining unchanged, an increase in its output will result in an equal proportionate increase in its revenue. What ...
The diagram shows a firm's cost and revenue curves. [Figure 8.1] The firm changes its objective from profit maximisation to sales revenue maximisat...
What could be a reason for the existence of small firms in various industries?
A firm in monopolistic competition that is producing at its profit maximising output is making a loss in the short run. For it to continue in produ...
The diagram shows the demand curve for a firm's product. [Figure 11.1] Which diagram shows the shape of the firm's total revenue (TR) curve? [Figur...
The diagram shows a firm in monopoly producing OQ units. [Figure 12.1]
Which feature of oligopoly is being assumed when the demand curve for an individual firm is as shown? [Figure 13.1]
Which statement is most likely to explain why a government decides to increase the highest rates of tax on personal income?
The Lorenz curves in the diagram show different distributions of income and of wealth. [Figure 15.1] Income in a country is more equally distribute...
A government wishes to discourage tax avoidance. Which policy to achieve this would be an example of the behavioural approach of nudge theory?
The diagram shows the supply and demand situation in a particular labour market. [Figure 17.1] When the market is in equilibrium, which areas measu...
In 2015 a company drilling for oil wished to reduce its workforce because of a fall in the price of oil. The workers' trade union opposed the propo...
Which policy is specifically designed to reduce the level of structural unemployment?
What is typically associated with a relatively low level of income per capita in a country?
During a certain period, a country with a constant population expands its output per head. It also experiences a significant increase in river and ...
The graphs below show percentage changes in money GDP and consumer prices in a country between 2008 and 2010. [Figure 22.1]
Why do some economists suggest there may be positive benefits from frictional unemployment?
The table shows the levels of consumption expenditure for given family incomes. [Table 24.1]
Which could cause the official statistics for the national income per head of a developing country to overstate the true level of economic well-bei...
The table shows some United Nations population statistics for 2010 and estimates for 2050. [Table 26.1]
In 2015, the World Bank agreed to give a loan of $650 m to Angola to help stabilise the economy. The Bank said Angola needed to have a fiscal polic...
A country with demand-pull inflation decides to fix its exchange rates against other currencies above the purchasing power parities. What is likely...
In the short run, which policy measure would tend to reduce a country's balance of payments deficit but increase its inflation rate?
In an economy with unemployed resources the government increases its expenditure. When would this be least likely to increase national income by th...
When will an economic activity create an external cost?
A government is planning to intervene in a free market to fix output at the level that maximises the economic welfare of society. [Diagram]
In a two-person economy, X has an income of $100, whereas Y has an income of $50. According to the Pareto criterion, which income change would cons...
The diagram shows three budget lines, QR, QT and SR. QR is a consumer's initial budget line. [Diagram]
When a firm increases all its inputs by 100%, its output increases by 50%.
The demand curve for a good has unit price elasticity throughout its length. Which statement about marginal revenue is correct?
What is true about the average fixed costs of a firm?
In the diagram MC = marginal cost; AC = average cost; MR = marginal revenue; AR = average revenue. [Diagram]
The diagram shows a firm's total revenue curve. [Diagram]
The diagram shows two indifference curves for a consumer. [Diagram]
Firms in a market advertise their products with different brand names. Some make more profit than others in the short run but all make normal profi...
Which feature of an oligopoly can be explained by the kinked demand curve model?
The table shows percentage (%) market share of smartphone operating systems (OS) for Great Britain (GB) and the United States (US) in January 2012 ...
The diagram shows a Lorenz curve, with two areas, X and Y, identified. [Diagram]
The government of a country wants to achieve a more equitable distribution of income. Which combination of measures is likely to be most effective ...
A shopkeeper earns $75 per week, but he would be willing to carry on working in his shop for up to $25 per week less. Therefore, $50 is his level of
The diagram shows the supply and demand for labour in an industry. [Diagram]
Immigrants are awarded entry points according to their ability to fulfil criteria set by the Canadian Government. A new Express Entry system for th...
It has been observed that increased growth in consumer spending results in an increase in investment by firms. Which principle of macroeconomic the...
What is the value of the multiplier in an economy with no government where the marginal propensity to save is 1/8 and the marginal propensity to im...
The table refers to an open economy with a government sector. In which situation is the economy in disequilibrium?
How do commercial banks create money?
What are the variables identified on the axes of a Kuznets curve diagram?
A developing country experiences economic growth. The economic growth is most likely to lead to economic development when it