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 year ending July 2016, airline fuel prices fell by 20.4% while the price of passenger aircraft increased by around 1.1%. Assuming no other c...
Which feature of production would make it more likely that an industry is a contestable market? A advertising has established consumer loyalty B al...
What is an example of backward vertical integration? A a bakery buying a wheat farm B a car manufacturer buying a car showroom C a vineyard buying ...
The diagram shows a firm in imperfect competition. It changed its aim from profit maximising to sales revenue maximising. [Figure 11.1] Which type ...
An airline sells seats at $100 each three months before a flight, at $150 each one month before the flight and at $200 each the day before the flig...
What would not be an indication of a divergence between the interests of the managers and the shareholders of a company? A an emphasis on sales max...
The total cost to a school of employing ten cleaners is $60 per hour. The school estimates that the hourly marginal cost of employing an eleventh c...
What would cause a rise in the productivity of labour? A an increase in indirect taxes B an increase in the quality of capital C a rise in consumer...
In the diagram D₁ and S are the initial demand and supply curves for building workers. [Figure 16.1] If the demand for building workers increases t...
Under which circumstances will a subsidy from the government be most beneficial if there are externalities from producing good X? externality caus...
Which tax would help a government achieve a more equal distribution of income after tax? A a constant rate sales tax applicable to all goods and se...
A country has a population of 100 million. There are 5 million people unemployed and the country has an unemployment rate of 10%. What is the size ...
Which type of unemployment is correctly linked to the description of its cause? type of unemployment | description of the cause ------------------...
Growth rates can be calculated using changes in the value of GDP from year to year. Why is real GDP per head considered to be a better indicator th...
What would not exist in a free market, open economy? A autonomous investment B household saving C import spending D indirect taxation
The information in the table is taken from a country's national income accounts. income | US $ (millions) -------------------|--------...
What is a part of Keynesian economic analysis? A a liquidity trap below which interest rates are ineffective B an equilibrium price that always cle...
What will definitely increase a country's Gross National Product? A an increase in income taxes B an increase in the marginal propensity to import ...
According to the accelerator theory, what determines this year's net investment? A last year's consumption B last year's output C the change in las...
Which diagram shows an economy experiencing an increase in actual output but a decline in potential output? [Figure 27.1]
What is likely to follow if a central bank sets negative interest rates? A an increase in government revenue B an increase in the rate of inflation...
The Consumer Prices Index (CPI) fell by 3% in a year. Unemployment was regarded as unacceptably high. Which combination of policies would a governm...
Other things being equal, what is most likely to result from an increase in a country's interest rates? A a capital inflow B a depreciation of the ...
What is an example of external benefits?
The diagram shows the marginal private benefit (MPB), the marginal private cost (MPC) and the marginal social cost (MSC) for firms in an industry. ...
What is not held constant when calculating the income effect of a change in the price of a good?
The diagram shows a consumer's initial budget line is GH and a set of indifference curves IC₁, IC2 and IC3 for goods R and S. The original equilibr...
Firms X, Y and Z are profit maximising private firms. X operates in a perfectly competitive industry, Y in a monopolistically competitive industry...
What are the correct formulae for calculating average cost (AC) and average revenue (AR)? AC AR key MC = marginal cost MR = marg...
A Hawker Centre where there are many outdoor stalls is a popular and cheap place to eat in Singapore. They sell a large variety of food but many se...
What is an example of horizontal integration?
The diagram shows a firm that is a sales revenue maximiser. [Figure 10.1]
What is an essential feature of the principal-agent problem?
Which characteristic of an industry works towards reducing the barriers to entry for new firms?
The government wishes to increase the use of a service with positive externalities. Which policy measure is most likely to produce the desired out...
The government imposes a maximum wage limit on recording artists. What must result in the short-run if the measure is effective?
The diagram shows the market for labour in an industry in the short-run. [Figure 15.1]
A country introduces a national minimum wage (NMW) of 10 per hour. In which industry is the NMW likely to cause the most unemployment? equilibriu...
Economics textbooks state that for a firm in imperfect competition labour is a derived demand. How is the demand curve for labour derived?
The diagram shows changes in the numbers employed in four different industries in a city between 2012 and 2017. [Figure 18.1]
What is likely to make the national income of a country less reliable as an indicator of the standard of living?
What is not included as a weighted indicator of poverty in the Multidimensional Poverty Index (MPI)?
What term is given to short-term unemployment when people are changing jobs?
Why might GDP remain unchanged despite a rise in labour productivity?
When is an increase in national income most likely to induce an increase in investment spending?
In a four sector economy in equilibrium, these values exist. $m investment 15 exports 40 government expenditure 50 savings 15 imports 45 taxes X ...
In a closed economy with no government C = 40 + 0.7 Y and I = 50, where C is consumption, Y is income and I is investment. What is the equilibrium...
An increase in the money supply leaves the price level unchanged. What could explain this?
The table shows the elasticity of demand for money and the elasticity of demand for investment with respect to a change in the interest rate for fo...
When making comparisons of living standards between different countries, what is not a reason why they may be misleading?