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.
In 2012, high street shops reported a fall in sales as domestic demand in an economy fell. However, the impact on the overall economy was not as un...
An economy is initially in equilibrium at point X in the diagram. [Figure X.X] The government then introduces a supply-side policy measure which ca...
A country experienced an annual deflation rate of 2% for four successive years. Which statement is correct for the four-year period?
In July 2013, orders for durable US manufactured goods from computers to aircraft fell 7.3%, the biggest fall for a year. What might explain this c...
The following exchange rates were recorded in the foreign exchange market. £1 = €1.208 $1 = €0.727 €1 = $1.375 Within which range of values should ...
Between 2005 and 2010, a country's import prices rose by 25% and its terms of trade rose to 120 (2005 = 100). Which change has there been in the co...
The diagram shows production possibility curves for two countries, X and Y. [Figure X.X] What can be deduced from the diagram?
What is not associated with greater economic integration between countries?
Which statement is not a valid justification for an import tariff?
An increase in interest rates is an example of which type of policy?
Which policy, adopted by a government with the intention of reducing the rate of inflation, might cause a greater deficit on the balance of payments?
Scarcity means that goods need to be rationed between competing consumers. Which basis for rationing is the most likely to result in the most equal...
In which aspect is the planned economy likely to offer more than the market economy?
Line XX is the production possibility curve (PPC) of a worker picking peas and beans in a 10 hour working day. [Figure 3.1] What would cause the wo...
Four students are given the following list of assets. • a three bedroom house • banknotes and coins in a purse • money in a bank savings account • ...
How would an economist establish the market demand curve for a private good?
D₁ and S₁ are the initial demand and supply curves for a normal product. They then change to D₂ and S₂. [Figure 6.1] Which pair of changes would re...
The table gives a set of price and cross-price elasticities for four commodities, W, X, Y and Z. [Figure 7.1] Which pairs of commodities are comple...
The price elasticity of demand for a product is constant and equal to unity. Which curve in the diagram shows the relationship between total expend...
A bottle making business announced it had introduced a new production system. As a result the quantity produced per week could be increased or redu...
The supply function for a good can be written as Q = 2P + 10, where Q is the quantity supplied in kilos and P is the price per kilo in dollars. The...
A local government is deciding whether to increase parking charges and provide more lanes for bus use only. One official said that the increase in ...
What would prevent the operation of the market mechanism's rationing function?
The diagram shows the demand and supply curves for a good during a certain period. The market price is shown by P and the quantity traded by point ...
A specific tax is placed on the sale of bottles of lemonade. In the diagram, SS is the supply curve before imposition of the tax and S₁S₁ is the su...
A market is in equilibrium at point X. The government then subsidises both consumers and producers by direct payments. What will be the new equilib...
Which is a transfer payment?
What is an example of direct public provision of goods and services?
What would supporters of a nationalised public transport service expect to be the most likely outcome from the privatisation of train and bus servi...
The diagram shows a shift in the aggregate demand curve of an economy from AD₁ to AD₂. [Figure 19.1] What could have caused this shift?
Which statement about changing price levels is correct?
Which combination of events is most likely to cause inflation? [Figure 21.1]
The table gives information about the trade between Singapore and New Zealand during 2001, the first year after they signed a free trade agreement....
Country X conducts 60% of its trade with country Y and 40% of its trade with country Z. The initial value of the trade weighted exchange rate index...
In the diagram D₁ and S₁ are the initial supply and demand curves of the pound sterling (£) on the foreign exchange markets. [Figure 24.1] What wil...
The table shows the ability of two countries, P and Q, to produce two goods, Y and Z. [Figure 26.1] Which statement is correct?
Which government policy could be considered as a protectionist policy?
The government of a country plans to raise income tax rates. The initial equilibrium for the country is represented by point X on the diagram. [Fig...
What is an example of an expenditure-dampening policy?
An economy is currently operating close to its full employment level of national income. Which combination of macro-economic policies would be most...
Fall in price of oil but Colombia can look forward to growth Fig. 1: Colombia's growth and the oil price Fig. 2: Colombian peso against the US doll...
The miraculous story of Iceland Fig. 1: Indices of the national output of Iceland and the Republic of Ireland (Rol) 2007–2014 (2007 = 100) [Figure ...
Zambia bears the brunt of China's economic slowdown [Figure 1: Zambian kwacha and copper price] Zambia was one of Africa's main beneficiaries when ...
Use the concept of income elasticity of demand to explain how a rise in incomes would affect the demand for an inferior good and for a necessary good.
Explain the role of profit in an economy where the price mechanism operates to allocate resources.
Explain how the functions of money are affected when there is a high rate of inflation in an economy.
What would be an example of a market failure? A higher prices for hotel rooms at holiday periods B noise pollution experienced near major airports ...
What is a necessary condition for the achievement of productive efficiency? A the removal of all externalities B the elimination of all divergences...
The table shows the expected costs and benefits from four government projects. The government can afford only one project. Which project should the...
Which statement about indifference curves is correct? A The indifference curves for inferior goods can show higher satisfaction on lower curves. B ...