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 measure to correct a balance of payments current account deficit would be classified as an expenditure-dampening policy?
To overcome the problem of scarcity, countries with few natural resources need to concentrate on the quality of human resources. Which set of polic...
A government decides to subsidise farms producing milk in its country. Which question about this decision is a normative question rather than a pos...
Economy X uses its resources in the labour-intensive production of wheat and wooden furniture as shown by the production possibility curve FW. With...
What is most likely to severely affect the ability of money to act as a medium of exchange?
What would not affect the position of the demand curve for wigs?
In the diagram D₁D₁ is a straight line demand curve and D2D2 is a rectangular hyperbola curve. [Figure showing demand curves D1D1 and D2D2 intersec...
Over a four year period, as the price of new houses increases, the price elasticity of supply for new houses falls, as shown. All new houses were s...
Prices of gold, silver and copper fell considerably in 2011 and again in 2015. The fall in 2011 was said to be because miners increased production....
Consumer X is the largest of five consumers and buys 50% of sales. The table shows the quantity of the good demanded by consumer X and the market s...
What is meant by consumer surplus?
The diagram shows the demand and supply curves of a commodity before and after a specific tax is removed. [Figure showing two supply curves S and o...
The diagram shows the market for heating oil. [Figure showing supply curve S and demand curve D intersecting] If the government introduces a produc...
The diagrams show UK Government total spending and welfare spending in £ billions between 2005 and 2014. [Figure showing two bar charts: 'total spe...
Health services in an economy are provided by private clinics that charge high fees. The government decides health services should be provided for ...
In its recent budget a government reduced total expenditure while increasing the amount spent on training to increase the productivity of the workf...
The table shows the retail prices index for four countries for years 2 and 3. (Year 1 index = 100 for all countries.) [Table showing country (A, B...
What does the current account of the balance of payments include?
Assume the Chinese monetary authorities are committed to maintaining the exchange rate of China's currency, the Yuan, against the US$ between P₁ an...
In the UK in July 2014, £1 = US $1.71. By the end of August 2014, £1 = US $1.65. What is most likely to explain this?
Which formula is used to calculate a country's terms of trade?
Country X forms a customs union with country Y. X then ceases to produce its own cars and instead imports cars from Y. Country Y diverts some of it...
The table shows the ability of two countries to produce two commodities when they use all of their resources for that product. [Table showing coun...
In 2014, Poland was the world's largest exporter of apples. 55% of the crop went to Russia. Then Russia banned the imports. What would not have pre...
Monetary policy can be used to increase the level of business activity. Which action illustrates this?
Argentina announces lifting of currency controls Fig. 1 Argentina's foreign exchange reserves (monthly) [Figure 1.0] Source: CEIC Argentina's new g...
Section A Answer this question. Japan's Economic Difficulties Table 1: Japan Consumer Prices Index, June 2013-December 2015 Consumer Prices Index...
The world market for rice Table 1: The World Price of Rice (World average price index, 2004 = 100) Year | Rice Price Index ---- | --- 2011 | 242 20...
Explain the factors that determine whether the price elasticity of demand for a good is likely to be relatively inelastic.
Explain how a production possibility curve with increasing opportunity costs illustrates the consequences of a government's choice to produce more ...
Show how exchange rates are determined in a freely floating system. Explain how a high rate of inflation in an economy can lead to depreciation in ...
Which is the most likely reason for the privatisation of state-owned industries?
A town council estimated the costs and benefits of operating a bus service in 2015 and 2016. These are shown in the table. 2015 $000 2016 $000 pri...
At major sporting events, unofficial markets occur where tickets originally sold by the event organiser are resold at prices higher than the origin...
Which statement describes the operation of the law of variable proportions?
The diagram shows two indifference curves and two budget lines relating to two goods X and Y. [Diagram] The consumer's initial position is at point...
Firms can grow internally or externally. What is a characteristic of external growth?
The diagram shows a firm's cost and revenue curves. [Diagram] The firm embarks on a successful $100 million advertising campaign. How will this aff...
What would encourage an increase in the number of small firms?
The diagram shows a firm's cost and revenue curves. [Diagram] The firm changes its objective from sales revenue maximisation to profit maximisation...
The firms in an industry decide to collude informally and follow a price leader. What will reduce the likelihood that the collusion will succeed?
The theory of contestable markets can be applied to
According to the law of diminishing returns, what happens as more of a variable factor is combined with a fixed factor?
Firm X is considering whether to co-operate with its rival so that their joint profit is 4000 a month (2000 each). It calculated that, if it did no...
Governments intent on improving living standards for individuals with low incomes sometimes impose rent controls (maximum prices) on houses rented ...
In certain countries benefits are provided to individuals on low income. As their income rises the benefits are reduced and income tax has to be pa...
What would help a trade union to negotiate an increase in the wage rates of its members without causing a reduction in the numbers employed?
An increase in the world price of oil increases the demand for deep sea divers from D₁ to D2 as shown. [Diagram] What is the change in the economic...
The table gives unemployment rates (%) for four countries in 1993 and 2002. UK Japan France Italy 1993 10.5 2.5 11.4 10.1 2002 5.0 5.4 8.8 8.5 Wh...
The diagram shows the saving and investment curves of a closed economy with no government. [Diagram] The potential level of output is OYp. Which di...