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 the values of selected macroeconomic variables over a two-year period. year 1 (m) year 2 (m) investment 250 350 saving 280 340 gov...
What will cause a fall in the quantity of money demanded?
What is not included in the measurement of national income?
Which row correctly identifies net injections into a country's circular flow of income?
Rapid economic growth is claimed by some to harm the environment. Which outcome would not harm the environment?
A country has labour shortages in some areas and high unemployment in others. Which government policy would help remove this imbalance?
Which is likely to hinder a supply-side stimulus to the economy?
What is most likely to influence subsequent increases in national income as a result of a government policy of reduced interest rates?
What might influence the ability of a government to use income taxation to redistribute income from richer to poorer groups?
In an economy no one can be made better off without making someone else worse off. What can be deduced from this? A Individuals are the best judges...
In 2015, a large mining company said it would reduce the number of staff by 6000 and sell its less profitable mines in an attempt to become more ef...
The production of a firm which operates in an imperfectly competitive market gives rise to external production costs. Which statement about this fi...
In the UK in 2015 there were two methods of charging for water supply. 1 a fixed charge giving the consumer the right to consume water at zero pric...
The diagram shows the cost curves for a firm. price MC ATC AFC Q1 Q2 output What does the firm experience as it increases output from Q₁ to Q2? A d...
Firms X and Y merge in a horizontal integration. What must be true about the industry and the stage of production in which X and Y operate? indust...
In the diagram the curve TC shows the relationship between a firm's total costs and its level of output. total cost TC R P O Q output At output OQ ...
Which diagram shows the total revenue function for a firm in perfect competition? A TR revenue Ο output B revenue TR Ο output C TR revenue Ο output...
Many public utilities can be described as 'natural' monopolies. Which statement best describes the situation leading to a 'natural' monopoly? A The...
Increased advertising by a firm in an imperfectly competitive industry leads to an increase in demand for the industry's product but a fall in the ...
An industry consists of a dominant firm, which acts as a price leader, and a large number of small firms. Which statement about the profit-maximisi...
There are two firms in an industry. Firm X faces a choice. It can either act independently or work with its rival. If it acts independently its pro...
What explains the kinked demand curve model of price rigidity in oligopoly? A collusion between all firms in the industry in the setting of prices ...
Which policy is not designed to correct a market failure? A government provision of health care B removing import quotas C price controls on large ...
A tax system allows people to earn a certain sum of income free of income tax. On income above this level, tax is levied at a constant rate. Which ...
What is the best example of nudge theory as applied to the prevention of tax evasion? A employing an extensive administration to ensure detection o...
In many countries it has been observed that, when high marginal rates of income tax imposed on richer groups are reduced, the tax revenue raised in...
The diagram represents the market for labour. wage W N D S₁ 1 S2 number of workers What would be the effect on transfer earnings and economic rent ...
How might real GNP per head be adjusted to make it a more reliable indicator when comparing standards of living in different countries? A adjustmen...
Which combination of circumstances is most likely to lead to an increase in a country's budget deficit? total GDP | unemployment | discretionary g...
To combat a rising crime rate, the government decides to recruit additional police officers who are paid a wage equal to that which they previously...
What could not exist in a closed, mixed economy? A a balance of trade deficit B a budget deficit C household debt D national debt
What does the accelerator principle state? A Consumption is a function of the rate of change of income. B Income is a function of the rate of chang...
What would not be classified as structural unemployment? A a car worker who is replaced by a robot on the production line B a coal miner whose mine...
What represents a leakage from the circular flow of income in an economy? A a balance of trade surplus B a government budget surplus C reduction in...
What will cause a downward shift in the aggregate demand curve of an economy? A an increase in firms' stocks of raw materials B a decrease in the e...
Which policy is most likely to raise the level of total demand in an economy? A an increase in direct taxation matched by a reduction in indirect t...
The government cuts taxes and increases its spending in order to create jobs during a recession. When will a resulting budget deficit be least like...
In 2011, the global money supply, narrowly defined, rose 11% and broadly defined money increased roughly 8%, as central banks continued efforts to ...
Which policy measure would be most likely to reduce a developing economy's birth rate and its household saving ratio? A an increase in student tuit...
Why do governments often subsidise the cost of entrance to museums?
The table shows the marginal costs of production and marginal benefits of consumption.
A cost-benefit analysis concludes that a nuclear power station project might be socially worthwhile, although it will take 10 years to bring into o...
The diagram shows a budget line indicating combinations of good Y and good X that a consumer could buy with a given income. The combinations shown ...
The table shows some of the assumptions of perfect competition and monopolistic competition.
What is a feature of a natural monopoly?
A firm is already the monopoly producer of product X.
What makes collusion between firms in an oligopolistic industry more difficult?
What is the defining characteristic of an oligopolistic industry?
A perfectly competitive firm is currently producing at a level of output where its marginal cost is above both its average total cost and the marke...
In which industrial sector is a small firm most likely to survive?