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 does the accelerator principle explain? A how changes in consumption lead to changes in income B how changes in income lead to changes in cons...
What belief do Keynesians and Monetarists share? A Expectations rapidly adapt to changing circumstances. B Fiscal policy is the most effective econ...
Which statement is most likely to be made by an economist from the Keynesian school? A Any deviation from full employment will only be temporary. B...
In pursuit of well-being It has been said that the mark of success of a government is raising the quality of life or the well-being of the people i...
Discuss whether competitive markets in the private sector are the best way to achieve an efficient allocation of resources.
Explain what is meant by a 'consumer's equilibrium position' in indifference curve theory and how it can be used to form a demand curve.
'A firm is fully aware of market conditions and its best rational interest would be achieved by pursuing the clearly defined objective of maximisin...
After negotiation, the workers in an industry obtained from employers higher wage rates. The employers' spokesperson said 'the cost of the deal wou...
Explain what economists mean by an inflationary gap and discuss why this is considered to be an economic problem. Use a diagram(s) to support your ...
'Developing countries have low levels of productivity and a high dependency ratio.' Explain the meaning of these two characteristics and consider w...
The impact of economic concentration By locating closely together manufacturers can often gain economic benefits. The makers of industrial machines...
Use indifference curve analysis to explain the derivation of an individual demand curve for a normal good.
Explain how the fixed and variable costs of a perfectly competitive firm affect its survival in the short and long run.
'Government intervention in the microeconomy always improves efficiency.' Discuss the validity of this claim.
In January 2018 tax reductions were introduced in the US, and the Federal Reserve Bank (the US central bank) announced it would raise interest rate...
Compare the characteristics of developed and developing countries.
Explain the Keynesian theory of the determination of the rate of interest.
In pursuit of well-being It has been said that the mark of success of a government is raising the quality of life or the well-being of the people ...
A tourist visits the coast for a holiday. On her first day, she visits the local tourist office for information, goes for a swim in the sea, spends...
Which aspect of a planned economy might be viewed unfavourably by a consumer but favourably by a producer?
If the rate of inflation rises from 2% to 20%, which function of money is likely to be most affected?
Which statement would be classified by an economist as a positive statement?
Which statement about price elasticity of supply is correct?
The price elasticity of demand for a firm’s product is equal to one for all price changes. What would be the result of this?
What leads to a downward shift of a normal supply curve?
A market is in equilibrium with 100 units of the product sold at a price of US10 each. The price elasticity of supply for the product is +2.0 and t...
The diagram shows the market for meat in equilibrium at X. The cost of producing meat rises and there is a trend for consumers to change from meat ...
Goods X and Y are complements. What will be the effect on the equilibrium price and quantity of good X of an increase in the supply of good Y?
A private company achieves a producer surplus at the market equilibrium price. What might reduce the size of the private company’s producer surplus?
Knowledge of which combination of demand elasticities would be relevant to a firm trying to increase its revenue?
What will definitely stop, following the nationalisation of an industry?
The diagram shows the effect of the government introducing a subsidy on a product. [Figure 15.1] What are the effects of the subsidy on government ...
In the diagram, S₁ and D₁ are the initial supply and demand curves of a product. [Figure 16.1] What would be the new supply curve following the rem...
The table shows sources of government revenue in a fiscal year for an economy. What is the total amount, in $ billions, of tax revenue raised by in...
Education from 4 to 16 years of age in most developed economies is provided at zero price, financed from taxation. Why should the government do this?
What will cause a movement along an aggregate supply curve?
A government devalues its fixed exchange rate. What is most likely to be its aim?
As part of its trade policy, a government subsidises the cost of machinery used to manufacture goods for export. How will this affect the balance o...
What is correct about the causes of inflation?
The figures shown are from New Zealand’s balance of payments for 2017 according to data published by Stats NZ in September 2018. What was the value...
Two statements are shown. 1 A country can produce a good at a lower opportunity cost than another country. 2 A country can produce a greater quanti...
The diagram shows the effect of the introduction of a tariff on good X by country Y. [Figure 25.1] What is the revenue, in US$ million, received by...
Between 2011 and 2013, retailers reported that expenditure on domestically-produced and imported goods had reduced. This was because consumers did ...
Increased international competition leads to a worsening in a country’s current account balance. In the absence of any offsetting factors, how is t...
Why are higher interest rates together with increased taxation on expenditure likely to cause domestic deflation?
Which policy aimed at correcting a balance of trade deficit is an expenditure-reducing policy?
Which policy will not cause a reduction in the rate of inflation?
Which list has the most words that are more likely to relate to a positive statement than to a normative statement?
What is the main characteristic of a planned economy?
An economy produces combinations of computers and food as shown on the diagram of a production possibility curve (PPC).