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 table shows three different prices and quantities supplied per week of two products, X and Y. price of X () 10 15 20 quantity supplied of X 8...
In 2016 car drivers bought more fuel (gas) because the price of oil from which it was made had fallen. Which diagram represents this change in the ...
The market demand for a product is made up of the demand from three firms, X, Y and Z. The table shows the demand from each firm and the market sup...
The diagram represents the market for diamonds. [Figure 10.1] What could have caused price to change from P₁ to P₂?
Good X has a substitute, good Y, and a complement, good Z. The price of good Y decreases and the price of good Z increases. Why might the equilibri...
At first, a television service is available at no charge. The television company then charges viewers $6 per hour to watch its programmes. The dema...
The diagram shows the European airline market. [Figure 13.1] New entrants have come into the market, shifting supply from S₁ to S₂. Which area repr...
Which benefit is most likely to result from a rise in the minimum price of labour (wage rate)?
The diagram shows the equilibrium price and quantity of good X. [Figure 15.1] The initial market equilibrium is shown by point E. What might cause ...
The table shows the demand and supply schedules for a product before and after the government pays a subsidy of $4 per unit to the producers. pric...
Which statement about transfer payments is correct?
What is the major problem associated with a government directly providing the correct amount of a public good?
An aggregate demand curve slopes downwards from left to right. One reason for this is that a reduction in the average price level will lead to
In the diagram an economy is initially in equilibrium at point X. The government increases spending on education. This coincides with an increase i...
During one year the national output of a country valued in terms of money prices increased by 8% while the index of the prices of all goods and ser...
The table shows the CPI rate of inflation (%) in the United States from 2006 to 2013. 2006 2007 2008 2009 2010 2011 2012 2013 2.5% 4.1% 0.1% 2.7% ...
In 2014 Australia and China negotiated a trade agreement. This removed Chinese tariffs on 95% of Australian exports in exchange for greater access ...
Turkey can produce a good but also imports some of the good from Egypt. The Turkish currency depreciates against the Egyptian currency. How is this...
The table shows the terms of trade for Saudi Arabia. date terms of trade 2000 100 2010 105 2015 137 What can be concluded from the table for Saud...
What is present in a customs union but not in a free trade area?
Which argument in favour of protectionism is not generally regarded as economically valid?
Which action is classified as a fiscal policy measure?
A country has a deficit on the current account of the balance of payments. Which policy would be expected to increase the deficit?
Which type of policy would have the most immediate effect in dealing with a deflationary economic downturn?
Venezuela's worsening economic crisis Table 1.1: Venezuela – Economic Indicators 2014-2017 | | 2014 | 2015 | 2016 (estimated) | 2017 (estimated) |...
Answer one question. Explain how governments face increasing opportunity cost in their decision-making. Use a production possibility curve diagram ...
In cost-benefit analysis the term net social benefit refers to A private benefit plus social benefit. B social benefit minus private benefit. C soc...
A government school is built by private builders in a residential neighbourhood. The builders ignore the effects of noise and disturbance. Why does...
In all market structures, what must firms equate to ensure allocative efficiency? A average cost and average revenue B average cost and marginal re...
In the diagram a consumer's budget line shifts from JK to GH. [Figure 4.1] Which statement must be correct? A There has been an increase in the con...
The table shows substitution and income effects for a normal good and for an inferior good as the price of the good changes. Which combination is c...
A government imposes a $10 tax on each unit produced of a product. How will this affect the firm? A Its average cost will rise by less than $10. B ...
According to oligopoly theory, what is not likely to characterise the behaviour of firms in the industry? A matching any price cuts made by their r...
The diagram shows the cost and revenue curves of a monopolist whose only cost of production is a fixed cost. What will be the monopolist's profit m...
Company R manufactures steel. Company S produces ships. Company T operates oil tankers. Company V operates cruise liners. Which statement is correc...
A monopolist chooses an output that maximises profits and makes normal profits. What must be correct at the output chosen? A Average cost equals av...
A firm operates in an imperfectly competitive market. The prices of its products are determined by the maximum price each consumer is willing to pa...
What is an argument for government policy which allows companies to take over other companies? A It allows firms to borrow from the banking system....
A government imposes a maximum price for electricity. Which statement justifying this measure might be considered valid on economic grounds? A It w...
The diagram shows the change in a market when a government places a production quota Qt on the quantity of a good that has previously traded at qua...
Which policy by a government would increase the negative externalities that result from cigarette smoking? A a ban on cigarette advertising B a ban...
A teacher currently earns $30000 but would be willing to continue to do the job provided she earned at least $25000. She prefers to stay in her tea...
What will increase the power of a trade union, allowing it to increase wages without reducing the employment of its members in a particular industr...
The table shows the number of workers employed by four firms in the same industry, the average number of hours worked each day and the total output...
Which stage of the business (trade) cycle is most likely to be characterised by an increasing negative output gap? A boom B recession C recovery D ...
Which characteristics are typical features of the least developed countries? dominant sector of industry export earnings terms of trade over time A...
What is central to economic growth but not necessarily to economic development? A an expansion of the range of economic choices available to indivi...
What would be the essential element in listing countries in order of their standards of living during a particular year? A a deduction for profits ...
A government wished to increase demand in an economy in an attempt to reduce unemployment. Which policy is most likely to achieve this? A establish...
What would be an increase in leakages or withdrawals from the circular flow of income? A increase in government spending on anti-smoking campaigns ...