Cambridge & Pearson Edexcel Past Paper Questions

A factory introduces an automated production line to take advantage of division of labour. What is most likely to increase?

Which statement is normative?

A manufacturer progressively reduces the price of his product. The table shows the outcome of this policy. price () | total revenue 000s () ---|-...

The diagram shows a consumer's demand curve for a product. [Figure 7.1] How does consumer surplus change as the price of the product rises?

Following the introduction of a 10% increase in charges for car parking in a city centre, the demand for bus journeys per day into the city rose fr...

An economy is suffering from a housing shortage. The demand for housing continues to rise as real incomes increase and more construction firms ente...

A good has a price elasticity of supply of 2.0. The current quantity supplied is 300 units per week at a market price of $20 per unit. The firm rai...

What is a major function of the price mechanism?

The diagram shows the supply curve of a product. [Figure 12.1] The government imposes a specific indirect tax of $5 on the product. How will the p...

In the market for a good the quantity supplied (Qₛ) and the quantity demanded (Qᴅ) are given by Qₛ = P – 30 and Qᴅ = 240 – 2P where P = price in do...

Privatisation can be achieved by the sale of shares to the general public (public offers, PO) or by the direct sale to a private company (private s...

The diagram shows the market demand and supply curves for rice. [Figure 15.1] What would happen if a government imposed a maximum price of $10?

A government decides to replace a private company with its own company to collect household waste. Why could such action be justified?

Which measure would not be part of a government subsidy to protect domestic producers from competition?

A country's railways are currently run by private firms. It has been suggested that the government should nationalise the railways. What might be ...

What is likely to cause a decrease in aggregate demand?

A country maintains its foreign exchange rate against the United States dollar, within a narrow but changing band. What is this type of exchange r...

Which components are included in the financial account of the balance of payments? the balancing item | foreign direct investment | interest, prof...

Which argument is an importer most likely to use to gain the support of consumers for free trade?

According to US Consumer Prices Index (CPI) statistics, an identical good that cost $100 in 1913 would cost $2359.60 in 2013. What was the approxi...

The diagram shows an economy at full employment equilibrium. [Figure 24.1] Which short-run measures should the government take to maintain the econ...

Why does the value of a country's terms of trade have no monetary units?

The statements that follow relate to possible gains from an increase in free trade. Which gain is least certain to result in the short run?

Which combination correctly classifies an expansionary fiscal measure and its impact on a budget deficit? fiscal policy | budget deficit ---|--- A...

In 2018 the United States (US) government introduced tariffs on a wide range of imports from China. Which type of policy was the US government ado...

During the Great Depression the US government believed that deflation was caused by a collapse in the prices of stock and other assets, reducing th...

Nigeria discovered oil 50 years ago and is now the world's sixth biggest oil exporter. The recent increase in global oil prices has had a very larg...

Explain, with the aid of a production possibility curve (PPC) diagram, why scarcity makes choice inevitable for firms and how each choice has an op...

There is increasing concern about the impact of foreign holidays on the environment of the host country.

Explain, with the aid of a diagram, one demand factor and one supply factor that can cause the depreciation of a foreign exchange rate.

Argentina raises interest rates to 40 per cent [Figure 1.1] On 4 May 2018, Argentina's central bank raised interest rates to 40%. The day before th...

Use a production possibility curve diagram(s) to distinguish between the growth of an economy and a reduction in the number of unused resources in ...

In summer 2018, many countries suffered a water shortage because of a long spell of very dry weather.

Explain, using examples, the difference between private goods and public goods and why public goods will not be supplied by private enterprise.

The growing problem of plastic waste It has been estimated that, globally, consumers buy a staggering one million plastic bottles every minute and ...

The price elasticity of supply for a new smartphone is estimated at 0.8 in the short run and 1.5 in the long run.

The annual rate of inflation in an economy increased sharply and unexpectedly.

Explain why the theory of comparative advantage may not give a true account of the benefits of free trade.

A medical team in a refugee camp provides vaccinations for children to prevent an outbreak of an infectious disease.

The diagram shows the average cost curves for a firm.

An economist undertakes a cost-benefit analysis of the pollution resulting from a manufacturing process.

An individual consumes goods X and Y. The marginal utility of good X is positive and falling. The consumer is at the point where the ratio of the m...

To analyse a consumer's preferences, an indifference curve represents possible combinations of goods X and Y. The diagram shows a consumer's indiff...

In the short run, a firm produces an extra unit of output.

The diagram shows the cost curves of a firm operating in a perfectly competitive market.

The table shows a firm's total and marginal costs.

An electronics firm, which began as a semiconductor firm making simple memory chips, has used continuous research and investment to emerge as an in...

Which diagram shows a monopolistically competitive firm in long-run equilibrium?

When will a cartel find it most difficult to fix the market price of its product?

The diagram shows the cost and revenue curves of a monopoly.