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.
Which policy is not designed to correct a market failure?
A chemical firm produces toxic fumes that impose costs on society. The diagram shows the free market equilibrium of the firm's product at P1Q1. The...
The level of benefit paid to an individual receiving a means-tested benefit depends on the individual's
The diagram shows two Lorenz curves.
A firm is operating in a perfectly competitive market.
Labour from developing countries often migrates to developed countries and finds jobs.
The African Union consists of 55 developing countries. They agree to adopt a free-trade model to boost trade between member countries.
Young workers find it especially difficult to get a job during an economic recession. A government introduces a transfer payment for those seeking ...
The diagram shows the annual percentage (%) change in employment and output in the UK private sector between 2000 and 2012.
The table shows the levels of consumption expenditure and savings for given family incomes.
During a year, a country's national income in money terms increased by 3%, prices increased by 4% and total population increased by 1%.
What does the accelerator principle explain?
An individual's demand curve for an active money balance will move to the left if there is an increase in the
A country's central bank buys government securities from the private sector.
What belief do Keynesians and Monetarists share?
Which statement is most likely to be made by an economist from the Keynesian school?
The US government has been using a policy of quantitative easing to increase economic growth.
In 2018 the US imposed a tariff on steel imports.
What is an example of a negative externality? A Lower profit due to increased competition from new firms entering the market. B Reduced government ...
The diagram shows a firm operating in monopolistic competition. [Figure 2.1]
The amount of training undertaken in a mixed economy is not socially optimal. What could explain this? A Experienced educators are a scarce resourc...
Four bus companies control more than two-thirds of the market in a country. Critics claim that these companies fix prices on some routes to maximis...
On a diagram the slope of a consumer's budget line becomes steeper. What can definitely be concluded from this? A The consumer's income has fallen....
The diagram shows two indifference curves and two budget lines for goods X and Y. [Figure 6.1] The consumer's initial position is at point F. The c...
The table shows the total costs at different levels of output for a firm producing chairs. | output (chairs) | total cost ($) | |---|---| | 0 | 50 ...
At which level of output will a firm achieve the aim of sales maximisation? A where AC = AR B where AC = MC C where MC = AR D where MR = zero
In market economies firms can operate under monopolistic competition.
When will the 'principal-agent' problem occur? A when managers are not allowed to become shareholders B when members of a cartel collude to gain hi...
The table provides data on the number and value of mergers in Europe and North America between 2014 and 2017. | year | Europe | North America | |--...
Charities distribute plastic bags to households that householders can fill with clothes they no longer want. The charities then collect them and se...
What could prevent a market failure? A barriers to entry B building regulations C growth of firms D persuasive advertising
When will a society have achieved an equitable distribution of income? A when all individuals have equal job opportunities B when all workers are p...
'The addition to revenue which results from employing one additional unit of a factor of production, while the quantities of all other factors of p...
The alternative to work is to have leisure time. The diagram shows a worker's decision of how many hours of labour to supply. [Figure 17.1]
By moving from rural areas to large urban areas to work, how might economic migrants create benefits in both areas in developing countries? A by im...
Which change is most likely to increase both economic growth and economic development in the long run? A a decrease in the saving ratio B an increa...
The table gives population data from the United Nations. | | low-income countries | lower-middle-income countries | upper-middle-income countries |...
The diagram shows selected US labour statistics from 2001 to 2013. [Figure 21.1]
What indicates that a developing country is becoming less dependent on foreign aid? A It gains foreign currency by exporting a range of raw materia...
How must GDP at market prices (producer prices) be adjusted to find GDP at factor cost? A by adding exports and deducting imports B by adding net p...
The diagram shows the equilibrium levels of national income in a closed economy with no government, at two levels of investment, I₁ and I₂. [Figure...
An upward shift of the curve relating consumption to national income could be caused by A a reduction in taxation. B an increase in investment. C a...
The table gives population data from the United Nations. | | income level | price level | interest rate | |---|---|---|---| | A | fall | fall | ris...
In 1936 Keynes explained how economic policy can be used to increase aggregate demand and prevent an economic depression.
A central bank increases the money supply in an attempt to stimulate investment and growth when the economy is in recession.
Which statement describes what the Phillips curve shows? A An inverse relationship exists between inflation and unemployment. B As employment incre...
To stimulate economic growth the government increases the size of its budget deficit and funds this by increasing the money supply.
Which diagram shows a monopolistically competitive firm in long-run equilibrium? A revenue MC AC /cost MR AR Ο Qe output C revenue /cost MC revenue...
When will a cartel find it most difficult to fix the market price of its product? proportion of firms in the industry that are members of the carte...
Which policy is not designed to correct a market failure? A government provision of healthcare B price controls on large firms C regulations to lim...