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 is used to measure the deflationary gap? A the increase in injections needed to reach full employment B the public sector borrowing requiremen...
The following data describes an economy's consumption function. income (m) consumption (m) 100 90 140 122 180 154 220 186 What can be deduced about...
In which circumstance will there be an immediate increase in the domestic money supply? A A consumer takes advantage of an overdraft facility to bu...
The turning point on the Kuznets Curve for income inequality has been estimated to be in the region of US $10500. For a country that has a GDP per ...
Which macroeconomic policy aims are most likely to complement one another? A high growth and low inflation B high growth and low unemployment C low...
All else remaining unchanged, what would result in an outflow of capital funds from a country? A a fall in the country's rate of inflation B an exp...
Problems in the steel industry By 2016, China's steel industry had expanded rapidly and accounted for just over half of world production but China'...
The UK Government has established a behavioural insight team known as the 'nudge unit,' which attempts to change consumer behaviour by persuasion.
Explain what is meant by equity, allocative efficiency and Pareto optimality. Consider whether they are linked.
In 2016, a country's largest yacht builder said it would have to make 350 people redundant. The company, which builds luxury yachts, said demand ha...
Distinguish between the transactions demand for money and the speculative demand for money. Consider which is likely to be more important for a con...
Explain the difference between autonomous investment and induced investment. Consider whether there is a link between these two types of investment.
Some developing countries pursue export-led growth and argue that the overall growth of the economy can be generated not only by increasing the amo...
Which outcome depends upon the division of labour?
'An increase in consumption by one person leaves the benefits available to others undiminished'. Which good does this statement define?
The diagram shows a production possibility curve for a farmer. The original position is X. If the farmer switches some of his land from producing p...
A student buys a flute for $80 but then is unable to learn to play it. It has a resale value of $50, while the shop retail price of the same type o...
The diagram shows a supply curve for beef. What explains why the supply curve for beef slopes upwards?
A theatre increases the price of its tickets from $10 to $15. As a result, its total receipts decrease from $10000 to $6000. Within what range does...
A taxi firm raises fares at its busiest times by as much as five times the normal fare. Taxi drivers and customers are notified of the changes by m...
The table shows Shanaz's and Sunil's price elasticity of demand for restaurant meals and theatre tickets. There is a rise in the price of restauran...
The diagram shows the demand curve for a normal product. Which two points indicates a move from a price inelastic point to a less inelastic point?
In the diagram, the supply of a product increases while the demand curve does not shift. Which row correctly identifies the resulting impact on con...
The diagram shows the market demand and supply for a good. Which statement is not valid?
For which supply curve is the value of price elasticity of supply not the same at all points on the curve?
Producer surplus is the difference between
A government wishes to raise the incomes of farmers without raising the price of food to consumers. Which policy should it use?
The diagram shows the demand and supply of rice. Supply increases from S₁ to S2. What is the change in sales revenue received by the rice farmer?
Money is paid by the government to an unemployed worker in the form of a benefit. Why is this called a transfer payment?
What describes a regressive tax?
A government is concerned that foreign-owned companies are responsible for a high proportion of the economy's output. Therefore it nationalises tim...
What will definitely lead to an improvement in the terms of trade?
In the diagram Sd is the domestic supply of a product, Sw is the world supply and Dd is the domestic demand for the product. After operating a free...
The diagram shows the value of the Nigerian naira against the US dollar between June 2015 and June 2016. Which term is used for the change in the v...
Countries M and N produce the world supply of machines and textiles. The table shows what each country produces when it divides its resources equal...
The diagram shows an aggregate supply curve, and aggregate demand curves. What would cause a decrease in aggregate demand from AD₁ to AD2?
Two countries trade with one another without any forms of protection. They also impose a common external tariff on the imports from all other count...
The terms of trade of a developing country fell from 90 in 2010 to 80 in 2015. Assuming the index of its import prices remained constant at 110 bet...
Which type of import control allows a country to develop a potential comparative advantage in a particular good?
The diagram shows aggregate demand (AD) and aggregate supply (AS) in an economy. The initial equilibrium is at point E. What causes shifts in the a...
Which action might be part of an expansionary economic policy?
A government is faced with rising inflation. It wishes to reduce inflationary pressure while avoiding a fall in output. Which action is most likely...
Why may a government seek to reduce a current account surplus on the balance of payments?
Poland: a growing economy Extract 1: Poland's successful transition from a planned economy Since 1995, Poland has grown faster than all other larg...
Section B Answer one question.
A project has a social cost of $100 million, a private cost of $40 million and an external benefit of $20 million. Its net social value is zero.
The diagram shows the cost and revenue curves for a firm. [Diagram showing price and quantity axes; MC, AC, MR, AR curves; price levels A, B, C, D ...
A government is considering improving the rail links in its country. It also has to choose one of four high-speed routes. The benefits and costs o...
The table shows the total utility gained by a consumer as they consume more apples. apples consumed total utility 0 0 1 10 2 18 3 24 4 28 5...
In the indifference curve diagram point M is the consumer's initial equilibrium, JK and JL are budget lines and MN is the substitution effect of a ...