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.
What is a characteristic of monopolistic competition? A abnormal profits in the long run B advertising supporting product differentiation C all fir...
The diagram shows the marginal cost (MC), average variable cost (AVC) and average total cost (ATC) curves of a profit maximising firm in a perfectl...
The table shows the average incomes of the richest 20% of households and the poorest 20% of households in the UK (2015–2016), and the effects of go...
Assuming there are no externalities, where would a nationalised firm set output to maximise social welfare?
What is the specific advantage of pollution permits, when compared with an alternative policy of taxes levied on the quantity of pollutants emitted...
Which diagram correctly shows the relationship between the average product (AP) and the marginal product (MP) of labour, given that the quantities ...
The diagram shows the short-run relationship between the total output of a firm and the quantity of labour.
Company X reduces its number of workers from 250 to 200 and as a result its output decreases from 5000 to 4800 units per day. Company Y increases i...
What is not included in the measurement of national income? A age-related pensions B dividends obtained from foreign investments C housing authorit...
The graphs show the Human Development Index and its component parts for Zimbabwe.
What makes it possible for the increase in real national output to exceed the increase in labour productivity? A an increase in employment B an inc...
The table shows the annual percentage (%) change in China's GDP and the contribution of some of its component parts between 2006 and 2012. 2006 20...
What is a cause of seasonal unemployment? A a general decrease in the demand for goods and services B a lack of necessary skills in the workforce C...
Which row correctly identifies leakages from a country's circular flow of income? private sector public sector trade sector (S > I) (T > G) (X >...
In a closed economy with no government expenditure and no taxation, the initial income is $5000 million. All savings are carried out by consumers, ...
The diagram shows a liquidity preference curve (LP) representing the demand to hold money in relation to the rate of interest and the money supply ...
An increase in which of the following will cause a decrease in investment spending? A business confidence B company profits C interest rates D nati...
The graph shows a shift in the liquidity preference curves for an economy from LP₁ to LP₂.
What is most likely to increase in the short run following a rise in an economy's rate of inflation caused by a demand-side shock? A the current ac...
Which combination of policies is most likely to increase output? fiscal policy monetary policy A decrease budget deficit decrease interest rates B...
The diagram shows cost and benefit curves for a good in a free market. [Figure 2] Which combination is correct? actual output social optima...
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. Which point represents the highest level of satisfaction curre...
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 t...
The diagram shows short-run (SRAC) and long-run (LRAC) cost curves for a firm. [Figure 8] Which statement is correct? A When each of the three SR...
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 r...
The table shows the main characteristics of employment in two occupations. occupation X occupation Y average annua...
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 t...
Economists have proposed that the best policy to promote development is 'trade not aid'. What is implied by this proposal? A Developing countries...
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 10...
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 ...
The government decides to raise the rate of Value Added Tax (General Sales Tax). What does this suggest is the government's main macroeconomic obj...
Loyalty and consumer behaviour Consumer loyalty can be thought of either in relation to card schemes which offer discounts based on the amount spe...
Explain the meaning of and whether there is a link
Explain what is meant by 'the principal-agent problem' and analyse why it is likely to be found in some market structures and not others.
'A rise in wages and salaries will increase the costs of production, decrease profits, cause inflation and is detrimental.' Discuss whether the eco...
Distinguish between the internal value of money and the external value of money and consider whether there is a link between these two values.
'The failure of the policy of quantitative easing (QE) to solve problems associated with an economic recession illustrates the weakness of monetary...
Assess the impact of foreign direct investment (FDI) on developing economies.
Amar Singh explained why he sells 'exotic' produce, such as broccoli and iceberg lettuce, at his vegetable stall in Mumbai. “I have to keep the cus...
Explain what is meant by 'market failure' and consider how far government intervention can reduce market failure.
A recent newspaper article commented on the fact that a pharmaceutical company charged customers in the United States (US) US800 per treatment whil...
Analyse how an individual consumer's demand curve for a product is derived and consider how this may be linked to its market demand.
Cyclical and structural unemployment are the most common types of unemployment. Explain the causes of these types of unemployment and assess the ef...
The US Federal Reserve (the country's central bank) has pursued a policy of quantitative easing (QE) for several years. Explain how quantitative ea...
Explain what is meant by actual economic growth and potential economic growth.
Consumer loyalty can be thought of either in relation to card schemes which offer discounts based on the amount spent with a specific retailer, emo...
Explain the meaning of and whether there is a link (i) between externalities and public goods (ii) between transfer payments and the poverty trap.
Which statement is the most valid reason for government intervention in a free market economy?
What would not be considered a barter transaction?