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.
Between 2014 and 2015 the Polish economy expanded at a rate of 3.3%.
The graphs indicate economic performance in a country between 2011 and 2014. [Diagram]
What will result in the short run from rising unemployment in an economy?
In 2015 a political party proposed a policy of quantitative easing (the creation of money by the central bank). When would such a policy be least l...
In 1979 in the UK the marginal rate of income tax imposed on the highest earners was 83% which increased to 98% if income was received from interes...
Which factor has been least associated with the rapid growth of many economies recently?
Changes in the world oil market and their effects Founded in 1960, the Organisation of Petroleum Exporting Countries (OPEC), consisted of five cou...
Compare the derivation of a demand curve for a product using the marginal utility theory with the derivation using indifference curve theory.
Explain the reasons why people demand money according to the liquidity preference theory. Consider which reason is the most important.
Economic theory produces a precise equilibrium outcome, often in an idealised market situation, but in reality things are much less certain. Discus...
Explain why some countries are referred to as developing. Suggest why the expected increase in population in developing economies is thought to be ...
Governments have a range of macroeconomic aims apart from economic growth.
'Lack of efficiency in the use of resources is not due to the market's inability to function. It is due to government intervention in a system that...
Monetary policy and economic growth Between 2009 and 2014, the central bank of the United Kingdom (UK) used policy measures of quantitative easing ...
Choice is an essential part of economics. Sometimes consumers change their choices either when shops have special offers on previously very expensi...
Explain the difference between price leadership and price discrimination.
Explain why people demand money according to the liquidity preference theory.
Economic models have little practical relevance. Discuss whether this is true of the analysis of how a fall in interest rates might affect an econo...
Developed countries sometimes prevent investment in rural areas while developing countries often encourage rural development. Consider why this mig...
The driving force of some governments is to bring the benefits of competition to formerly monopolised markets.
In the United Kingdom (UK) in the last three months of 2014 the employment rate was at a record high (73.2%) and total pay had its highest increase...
Firms should be allowed to produce in the manner they wish and consumers allowed to buy what they believe they want. Discuss whether this is the b...
Explain how utility theory can be used to determine the downward slope of a demand curve.
Why is it important for a firm seeking to maximise profits to distinguish between the concepts of diminishing returns and economies of scale?
Analyse the difference shown by marginal revenue productivity theory between wage determination in perfect and imperfect labour markets. Discuss th...
All countries hope to cause their economies to expand and develop through economic growth.
Estimates in 2015 put the GDP of New Zealand at US191 billion, Peru at US190 billion and Romania at US$189 billion. Are these figures a sufficient ...
The statements refer to the proposal to build another runway at London's Heathrow airport. Which statement is normative?
YX is an economy's production possibility curve (PPC). The equation of the curve is qY = 1000 – 2qX. [Figure showing a downward sloping straight li...
A farmer picks 10kg of strawberries in each hour. The farmer is twice as productive at picking raspberries. Which diagram shows the farmer's daily ...
Governments provide public goods. What is an example of a public good?
India is one of the largest producers of tractors in the world. S₁ and D₁ are the original supply and demand curves for Indian tractors. [Figure sh...
The diagram shows the demand curve for a product. [Figure showing a downward sloping straight-line demand curve labelled D, with price on the y-axi...
The cross-elasticity of demand between two goods will be higher
The price elasticity of supply of a good is +2. The quantity supplied originally was 200 units. The price increases by 30%. What will be the quanti...
The diagram shows S₁ and D₁, the original supply and demand curves for fast food in an economy. Point X is the original equilibrium. Fast food is a...
When will the price mechanism not function as a system for allocating goods?
During a certain period, 10000 units of a normal good are sold at a price of US20. During a later period, 12000 units are sold at a price of US22. ...
A free market is in disequilibrium with a shortage of a product. As the market moves towards equilibrium, what will happen to the price, the quanti...
In the diagram, D and S represent the domestic demand and supply curves for a product. Sw represents world supply of the product at a world price o...
A government wishes to impose a tax on a good so that the producer and not the consumer pays most of the tax. Which type of elasticity would it be ...
The diagram shows the effect on the supply curve of a product when the government provides a subsidy. [Figure showing two upward sloping supply cur...
What is not an example of a transfer payment?
In 2016-2017 a government spent $135 billion on the health service. The diagram shows the provision of healthcare in that country. [Figure showing ...
A government privatises the telecommunications industry. What is least likely to increase?
The diagram shows short-run aggregate supply and demand in an economy, where the initial equilibrium is at S. [Figure showing multiple aggregate de...
The diagrams show the inflation rate over time in four countries. Which country experiences a falling cost of living throughout the period?
A government statistical office measured changes in income from employment, pensions and benefits, then subtracted income tax and welfare contribut...
The table shows all of the items on the current account of a country's balance of payments. $ million exports of goods 143 imports of goods 156 exp...
Country P exports goods and imports goods. Export prices and import prices are set to an index of 100 in year 1. The table shows corresponding pric...