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.
The table shows the annual rate of inflation (consumer prices) and the annual rate of unemployment for five countries in a recent year. rate of in...
An economy has a balance of payments trade surplus and a high level of inflation. What is most likely to be an appropriate action for the governme...
European countries have some of the highest GDP per capita levels in the world. They also have some of the highest life expectancy figures at birth...
A dictionary defines efficiency as ‘the power to produce the result intended’. Explain what is intended by achieving economic efficiency and why it...
Explain the difference between perfect competition and monopoly and, with the help of diagrams, distinguish between normal profit and supernormal p...
Trade unions, minimum wage legislation and large powerful businesses invalidate the conclusions of the traditional economic theory of wage determin...
Distinguish between structural and frictional unemployment. Consider which would be likely to have the greater negative effect on an economy.
Consider the extent to which the commercial banks can influence the money supply.
‘Both developed and developing economies can experience high levels of unemployment, high rates of inflation and large current account deficits. Th...
Infrastructure is restricting Indonesia's economic development One feature of Indonesia's economy that has been hampering its economic and social d...
Explain, with the aid of a diagram, diminishing marginal utility and its link to indifference curves.
A businessman claimed it was difficult to make decisions as his business was subject to uncertainty and interdependence. Discuss the methods used b...
Explain how a firm derives its demand curve for labour and consider how the structure of the product market in which the firm operates affects the ...
Explain the difference between actual growth and potential growth.
In 2016, governments in some countries were concerned about inflation, whilst the governments of other countries were concerned about recession.
A free market economy operates to the benefit of both consumer and producer to achieve the most efficient outcome, and therefore there is no role f...
Inequalities of wealth In 2015, the vast and growing gap between rich and poor was revealed in a report from the charity Oxfam. Oxfam said that bet...
Explain why the concept of the margin is significant in the economic theory of consumer behaviour.
In recent years the prices of many electronic products have fallen as sales have increased. Research to improve the products is expensive but there...
Economic theory is often very precise in its explanation but not very useful in its application to reality.
Explain what economists mean by a 'deflationary gap' and discuss why this could be considered problematic for an economy. Use a diagram to illustra...
Explain the quantity theory of money. Consider its relevance to economic policies that might be used to control inflation.
Economic development can only be achieved by economic growth and this depends solely on higher levels of government investment. To what extent woul...
A production possibility curve for a country is shown. What would cause the shift from PP to P₁P₁?
A government wants to move its economy away from central planning towards a market economy. Which policy would be consistent with this aim?
What would be a determinant of a country's production possibility curve boundary?
What justifies government intervention in the provision of a merit good such as education?
The diagram shows the supply of limestone from quarry X and quarry Y at two prices. What is the measure of the responsiveness of supply as the pric...
What is a perfectly contestable market?
The diagram shows the demand for and supply of cream. The original equilibrium is point X. Strawberries and cream are complementary goods. If the p...
Hunters in Mozambique want to extract wild honey from beehives. They find the beehives by following birds known as honeyguide birds who want the be...
What follows if the income elasticity of demand for a good has a value of –0.2?
The diagram shows the relationship between price (P) and demand (D) for a normal good G. What would cause a shift to D₁?
What is most likely to cause an increase in the consumer surplus in the market for a normal good?
The cross elasticity of demand between two products, X and Y, is negative. What would be the immediate effect of a rise in the price of product Y?
Which combination of events is most likely to leave the demand curve for a normal good in the same position?
Which of the following is a transfer payment?
Too much sugar causes an increase in a consumer's weight. A government has introduced a 'sugar tax' on the consumption of soft drinks that have a h...
A government intends to introduce a minimum price for rice, a maximum price for heating oil and a tax on chewing gum. Who, in each market, is meant...
A Southern African government was concerned about the market influence of a large producer and was keen to take control of the company. What might ...
A country has a fixed exchange rate. Which combination of problems would be most likely to cause the country's government to reduce taxation and lo...
How can a change in consumption that increases unemployment be illustrated on an aggregate demand and aggregate supply diagram?
What is not an item in a country's current account of its balance of payments?
A country decides to remove all its tariffs and engage in free international trade. What will be the final decision the country has to make before ...
What is assumed to be constant when drawing an aggregate demand curve?
The diagram shows the imposition of an import tariff. Sw is world supply. Sw + tax is world supply after the tariff is imposed. Which statement is ...
An economy is experiencing a period of deflation. What must be happening?
A British citizen buys a house in the US which he rents to American citizens in order to receive an income for himself. Where will the initial purc...
Under a system of floating exchange rates, what determines the foreign exchange value of a currency?
A country with a balance of trade deficit raises interest rates. How may this help to reduce the deficit in the short run?