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.
The world consists of two countries, M and N. The graphs show their production possibilities for wheat and rice. [Figure 26.1] Countries M and N op...
The diagram shows the current equilibrium of an economy. The government introduces a contractionary monetary policy. [Figure 27.1] What is the most...
A government wishes to reduce the deficit on the secondary income section of its current account. Which policy would be most effective?
Supply-side policies can be used to correct cost-push inflation. Which policy would best achieve this aim in the long run?
Economic growth leads to increased levels of income and consumption per capita for the adult population. Which circumstances are needed for this to...
What is the best definition of a positive economic statement?
The diagram is from a chapter on 'The Fundamental Economic Problem' in an Economics textbook. It should contain the terms opportunity cost, scarcit...
What is a statement of the non-rivalrous nature of public goods?
A country increases its spending on education and training. It pays for this by reducing unemployment benefit payments and increasing taxes on impo...
The diagram shows an outward shift of the production possibility curve from PPC₁ to PPC₂. [Figure 5.1] What could have caused this shift?
D₁ and S₁ are the initial demand and supply curves in the market for new cars with an equilibrium at X. [Figure 6.1] What will cause the demand cur...
When can a product be said to have a negative income elasticity of demand?
The diagram shows the short-run supply curve (SSR) and long-run supply curve (SLR) for a bakery. The price of a loaf of bread increases from $2.00 ...
An increase in which variable will always lead to an increase in the consumer surplus?
Farmers want to extract wild honey from beehives. They find the beehives by following birds known as honeyguide birds who want the beeswax that is ...
An indirect tax is imposed on good X. Which situation is most likely to result in producers bearing a higher burden of the tax?
What would not be included in the calculation of an individual's wealth?
Why might governments provide free education for children aged 4 to 16 years old?
The diagram shows the demand and supply for rice. The market for rice is initially in equilibrium at a price of P₁. The government introduces a max...
Price stability can be said to occur if the measured value of the consumer prices index (CPI) is unchanged during the year. Which statement is corr...
Based on the circular flow of income, which condition is necessary for an open economy to be in equilibrium?
The aggregate demand curve is typically downward sloping. What is one possible explanation for this?
What is most likely to cause an unemployed worker to be classified as frictionally unemployed?
The table shows figures estimated at the end of a train drivers' strike. [Figure 20.1] What was the reduction in the recorded level of national inc...
What is likely to be an expansionary monetary policy?
A government increases direct taxation to reduce its budget deficit. How is this likely to affect the government's ability to achieve its macroecon...
An income tax has a tax-free allowance of $10000 and a single rate of 25%. What type of tax is this?
Which supply-side policy will encourage new entrepreneurs?
The diagram shows aggregate demand (AD) and aggregate supply (AS) curves. The initial equilibrium is at X. A government decides to invest in an inc...
What is most likely to lead to a persistent surplus in a country's current account of its balance of payments?
Which formula is used to calculate the terms of trade?
A country is experiencing a deficit on the current account of its balance of payments. Which policy decision could reduce the deficit?
The Euro (€) is the main currency of the European Union. The diagram shows the exchange rate between the Euro and the US dollar. [Figure 30.1] What...
The diagram illustrates the production possibility curves for an economy in Year 1 (X1 Y1) and Year 2 (X2 Y2). [Figure]
What does the concept of ceteris paribus allow economists to do?
The diagram shows a person's marginal costs and marginal benefits of making trips to the cinema. [Figure]
A change in market conditions causes a reduction in supply. This results in a higher price for the product, which has a downward-sloping demand cur...
A government wishes to impose a tax on a good so that the consumer and not the producer pays most of the tax increase. Which type of elasticity wou...
The table shows the price elasticity of demand for four goods and services. [Table] If the price of each item increased by 1%, for which items woul...
Two goods, X and Y, are complementary goods. Column 1 of the table below shows the original market situation at time period 1 and column 2 shows th...
The table shows the maximum price a consumer would be willing to pay for successive cans of fruit juice. [Table] The price of a can of fruit juice ...
What is generally considered to be one of the advantages of using the price mechanism as a rationing device?
What would cause a failure of the market mechanism's rationing function?
What can be provided only as a public good?
The diagram shows the market for wheat. [Figure] What quantity of wheat must the government buy if it wishes to raise the market price from P₁ to P₂?
The government places a maximum price P₁ on an agricultural product. The supply and demand conditions for this product are shown. [Figure] What wil...
A country has the correct climate for growing tea, which is produced very cheaply and exported. Fruit is also grown, but this costs more as the cli...
A government has been protecting its domestic car industry with a quota on imported cars. It then removes the quota and replaces it with a subsidy ...
What will cause an improvement in a country's terms of trade?
The table shows the balances for four items in a country's current account on the balance of payments for two years. [Table] What can be concluded ...