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.
In the diagram, MN is the production possibility curve of a country that has a comparative advantage in the production of good Y. [Figure showing a...
What is the difference between a customs union and a free trade area?
Which statement about trade protection is correct?
What is an example of expansionary monetary policy?
China had a US$155 billion current account surplus in 2012. Which combination of policies might the Chinese Government use to reduce the surplus?
In an economy, prices are rising. The government wishes to limit further increases in prices. Which policies would it be likely to use?
Russia's economic problems are getting worse Russia's currency, the rouble (RUB), has been falling rapidly in value. Content removed due to copyrig...
Section A Answer this question. Thai Economy's Prospects Improve Table 1.1: Total expenditure in Thailand, by category, 2014 | Category of Spending...
Section B Answer one question. You may answer with reference to your own economy or other economies that you have studied where relevant to the que...
The Trans-Pacific Partnership (TPP) – good or bad? In February 2016, the controversial TPP trade deal was finally signed at a ceremony in Auckland,...
In March 2016, the United Kingdom government announced that it will introduce a ‘sugar tax' on the producers of fizzy soft drinks in order to reduc...
In 2015, it was reported that the global demand for chocolate was projected to increase but it was unlikely that the global supply of cocoa beans, ...
4 (a) Explain the main causes of changes in the general price level in your country, or any other country with which you are familiar. (b) Discuss ...
A government makes a study of the costs and benefits of allowing a leisure company to develop a holiday resort in an area of natural beauty. When s...
What is an example of market failure? A atmospheric pollution in cities due to emissions from cars B free entry for children to an art gallery C hi...
The diagram shows a firm's long-run cost and revenue curves. [Figure 3.1] At which level of output is the firm both allocatively and productively e...
When does the slope of a budget line always change? A A person buys more of one of the two goods. B A person's income changes. C One of the two goo...
The points in the diagram represent different combinations of good X and good Y. [Figure 5.1] An individual prefers more of both goods to fewer, bu...
The diagram shows a firm's total cost curve. [Figure 6.1] At which level of output will the firm's marginal cost be equal to its average cost? A A ...
What is necessary for a firm to practise price discrimination? A There are many buyers in the market. B There are many firms in the market. C The m...
A mobile (cell) telephone manufacturing company takes over an electronic chip design company. This is an example of which type of growth? A horizon...
An imperfectly competitive firm was making supernormal profits. The following year it made normal profit with no change in output. How could this s...
What is implied by an observation that an industry is contestable? A Barriers to entry make little difference to a firm's monopoly power. B Firms i...
What is likely to facilitate the growth of large firms in an economy? A an industry structure which approximates to perfect competition B dividend ...
A firm changes its objective from maximising profit to producing at the allocatively efficient output. In which market structure must the firm oper...
Which government policy is intended to correct 'market failure'? A guaranteed minimum prices for farmers producing certain agricultural products B ...
The chart shows changes in employment by sector for a country between 2010 and 2016. [Figure 14.1] Which statement about the period 2010 to 2016 mu...
An engineer is paid $100000 a year. The next best paid job she could get is as a teacher at $60000 a year. What are her transfer earnings and her e...
What will necessarily cause the supply curve of labour in a particular industry to shift to the right? A a fall in wages paid in similar occupation...
A café owner near a beach employed five staff and paid them each $10 an hour. During the holiday season two extra staff were needed. To get extra s...
The diagram shows an economy's production possibility curve. [Figure 18.1] What causes a movement from point X to point Y? A a positive output gap ...
In an economy real national output increases more rapidly than the increase in employment. What could account for this? A a decrease in the general...
The table shows what has happened to three economic indicators between two years in a country. population inflation rate income distribution A con...
What is assumed in the explanation of cyclical unemployment? A Employers employ more labour if aggregate demand decreases. B Exchange rates ensure ...
What identifies net injections into a country's circular flow of income? I > S X < M G < T A ✓ X ✓ key B ✓ X X ✓ = yes C X ✓ ✓ x = no D X ✓ X
According to JM Keynes, sometimes monetary policy is ineffective. The supply of money (MS) is assumed to be controlled by the central bank. The dem...
The US economy, which relies heavily on international trade to obtain raw materials and to sell products, is in equilibrium at point X. If the valu...
From any additional national income, 20% is spent on imports, 25% is paid in taxes, 5% is saved and the rest is spent on domestically produced good...
In a Keynesian model, why would a $100 million increase in government expenditure on goods and services have a greater impact on aggregate demand t...
Equilibrium income in the economy is the level of national income at which A the economy is producing at full employment national income. B the inf...
What is not an automatic stabiliser? A income tax B profits tax C state retirement pension D unemployment benefit
Which policy is most likely to allow a developed economy to meet all its macroeconomic objectives? A lowering interest rates to raise actual growth...
A government is increasing the role of market forces in its economy. However, it imposed temporary maximum price controls. Why might a government, ...
How is social cost calculated? A external cost minus external benefit B external cost minus private cost C external cost plus private cost D social...
Which government policy is not aimed at correcting inefficiency in resource allocation? A marginal cost pricing in state owned industries B permits...
The table shows some of the costs and benefits, in $ millions, associated with a road building project. Both a government department and a profit-m...
In the diagram, Q₁ is the quantity produced of a good as the result of market forces. [Figure 4.1] Which concept is present at output Q₁? A a gover...
What would not affect the budget line of an individual consumer? A the individual's preference for various goods B the level of income tax C the mo...
The diagram shows the demand curve for a product. [Figure 6.1] What is maximised at X? A marginal revenue B total revenue C marginal utility D tota...
The diagram shows a firm's cost and revenue curves. [Figure 7.1] Which features are associated with the diagram? A economies of scale and allocativ...