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.
An economy is currently in the position PY shown on the diagram. Which short-run effects is government spending on education likely to have on unem...
The diagram shows the AD/AS curves for an economy. Which policy would reduce the price level from P₁ to P2 as shown?
Trade tensions between China and the United States At a World Economic Forum meeting in Switzerland in 2017, the Chinese President re-affirmed his ...
Explain, with the help of diagrams, how (i) constant and (ii) increasing opportunity costs determine the shape of an economy's production possibili...
Explain, with the help of a diagram, the disadvantages to consumers of introducing a maximum price in a market for an essential food item.
Explain, with the help of a diagram(s), how changes in aggregate demand and aggregate supply can cause inflation in an economy.
Egypt's economic difficulties Table 1.1: Egypt, selected economic indicators, 2014–2019 | | Consumer Price Index (base year 2000) | Current accoun...
Section B Answer one question. (a) Explain how economists use the concept of elasticity to distinguish between inferior goods and necessary goods ...
Section B Answer one question. (a) Distinguish between regressive and progressive taxes and explain whether you would use an income tax or a speci...
Section B Answer one question. (a) Explain, using examples, what is meant by ‘protectionism' and show with the help of a diagram how export subsid...
Section A Answer this question. Difficult times for OPEC and Nigeria The Organisation of Petroleum Exporting Countries (OPEC) has 13 members and pr...
When can an economy be said to be economically inefficient? A when it is possible to make some people better off without making other people worse ...
The diagram shows cost and benefit curves for a good in a free market. [Figure]. Which combination is correct? actual output social optimal level o...
A food processing firm discharges waste water into the lake next to its factory. What would reduce the difference between the private cost and the ...
The diagram shows attainable indifference curves, I₁ and I2, for good X and good Y. [Figure]. Which point represents the highest level of satisfact...
The table shows the substitution effect and income effect for a Giffen good and an inferior good as the price of the good changes. Which combinatio...
In many developed economies, large and small firms often exist side by side in the same industry. What is most likely to explain the survival of th...
The diagram shows short-run (SRAC) and long-run (LRAC) cost curves for a firm. [Figure]. Which statement is correct? A When each of the three SRAC ...
What is most likely to rise as a firm expands? A energy costs per unit of output B the cost of components C the cost of monitoring workers D the ra...
In the long run, what is a feature of monopolistic competition, but not of perfect competition? A a small number of buyers B product differentiatio...
A small European airline currently produces at point X on its long-run average cost curve. It wants a bigger share of the European airline market a...
A firm sells its product to consumers in two separate markets, M and N. Under which conditions will a policy of price discrimination between the tw...
A community relies on a private company to supply electricity using a coal-fired power station. The power station causes air pollution which impose...
Some workers in a low-paid job decide to work longer hours to increase their disposable income. However, this decision reduces state-provided benef...
Which policy is likely to be the least effective means of producing a more equal distribution of income amongst households? A the imposition of min...
The table shows the main characteristics of employment in two occupations. occupation X occupation Y average annual wage $100000 $60000 number of ...
The table shows a firm that has four possible methods of production to make its desired output. Each method has a different cost and causes a diffe...
How can GDP at market prices be calculated if GDP at factor cost is known? A add taxes, add subsidies B add taxes, subtract subsidies C subtract ta...
Which characteristics of the population, the size of the informal economy and the rate of inflation would mean that Gross Domestic Product (GDP) is...
The table gives the percentage of employment in the primary, secondary and tertiary sectors in four countries. Which country is most likely to be a...
The diagram shows unemployed persons (in millions) for the years 2000 to 2016 for the European Union. [Figure]. During which period was the highest...
A large coal mine is forced to close because of falling demand for coal as consumers switch to less-polluting fuels. The government organises retra...
Economists have proposed that the best policy to promote development is 'trade not aid'. What is implied by this proposal? A Developing countries s...
The table shows the values of selected macroeconomic variables over a period. year 1 year 2 (m) (m) investment 200 220 saving 180 190 exports 100 ...
What is most likely to increase if an economy enters a negative output gap? A business confidence B economic growth rate C inflation rate D unemplo...
Under which conditions will a Keynesian expansionary fiscal policy be most likely to take an economy out of a recession without too much inflation?...
What would cause an increase in the transactions demand for money? A a fall in the price of bonds B an increase in nominal national income C an inc...
What may lead to a reduction in bank lending in a country? A an increase in commercial banks' balances with the central bank B an increase in the l...
The table gives details of the inflation and unemployment rates for different countries in 2008 and 2011. inflation rate (% per annum) unemploymen...
The government decides to raise the rate of Value Added Tax (General Sales Tax). What does this suggest is the government's main macroeconomic obje...
Which statement is correct? A In a command economy firms compete and profit maximise allocating resources efficiently. B In a command economy resou...
The diagram shows the market for a product, the production of which has both external costs and external benefits.
The government is considering building flood defences along a river. It has calculated the costs and benefits as follows. costs benefits $m $m pr...
The graph shows the total utility (TU) obtained by a consumer from eating biscuits over a period of one hour.
The diagram shows budget lines for normal goods X and Y.
A consumer spends all of their income on two goods, Y and X, and is at position E. The price of X falls and the price of Y remains constant. The gr...
What defines average variable cost? A total cost divided by the quantity of the variable factor employed B total variable cost divided by the quant...
What cannot be changed in the short run? A the level of stock held by firms B the level of technology available C the market price of goods D the o...
The market structure of an industry changed from being an oligopoly to monopolistic competition. What is most likely to have increased?
A firm has total production cost of $200000. Its average fixed cost is $120 and its average variable cost is $80.