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 could cause the official statistics for the national income per head of a developing country to overstate the true level of economic well-bei...
The table shows some United Nations population statistics for 2010 and estimates for 2050. [Table 26.1]
In 2015, the World Bank agreed to give a loan of $650 m to Angola to help stabilise the economy. The Bank said Angola needed to have a fiscal polic...
A country with demand-pull inflation decides to fix its exchange rates against other currencies above the purchasing power parities. What is likely...
In the short run, which policy measure would tend to reduce a country's balance of payments deficit but increase its inflation rate?
In an economy with unemployed resources the government increases its expenditure. When would this be least likely to increase national income by th...
When will an economic activity create an external cost?
A government is planning to intervene in a free market to fix output at the level that maximises the economic welfare of society. [Diagram]
In a two-person economy, X has an income of $100, whereas Y has an income of $50. According to the Pareto criterion, which income change would cons...
The diagram shows three budget lines, QR, QT and SR. QR is a consumer's initial budget line. [Diagram]
When a firm increases all its inputs by 100%, its output increases by 50%.
The demand curve for a good has unit price elasticity throughout its length. Which statement about marginal revenue is correct?
What is true about the average fixed costs of a firm?
In the diagram MC = marginal cost; AC = average cost; MR = marginal revenue; AR = average revenue. [Diagram]
The diagram shows a firm's total revenue curve. [Diagram]
The diagram shows two indifference curves for a consumer. [Diagram]
Firms in a market advertise their products with different brand names. Some make more profit than others in the short run but all make normal profi...
Which feature of an oligopoly can be explained by the kinked demand curve model?
The table shows percentage (%) market share of smartphone operating systems (OS) for Great Britain (GB) and the United States (US) in January 2012 ...
The diagram shows a Lorenz curve, with two areas, X and Y, identified. [Diagram]
The government of a country wants to achieve a more equitable distribution of income. Which combination of measures is likely to be most effective ...
A shopkeeper earns $75 per week, but he would be willing to carry on working in his shop for up to $25 per week less. Therefore, $50 is his level of
The diagram shows the supply and demand for labour in an industry. [Diagram]
Immigrants are awarded entry points according to their ability to fulfil criteria set by the Canadian Government. A new Express Entry system for th...
It has been observed that increased growth in consumer spending results in an increase in investment by firms. Which principle of macroeconomic the...
What is the value of the multiplier in an economy with no government where the marginal propensity to save is 1/8 and the marginal propensity to im...
The table refers to an open economy with a government sector. In which situation is the economy in disequilibrium?
How do commercial banks create money?
What are the variables identified on the axes of a Kuznets curve diagram?
A developing country experiences economic growth. The economic growth is most likely to lead to economic development when it
Between 2014 and 2015 the Polish economy expanded at a rate of 3.3%.
The graphs indicate economic performance in a country between 2011 and 2014. [Diagram]
What will result in the short run from rising unemployment in an economy?
In 2015 a political party proposed a policy of quantitative easing (the creation of money by the central bank). When would such a policy be least l...
In 1979 in the UK the marginal rate of income tax imposed on the highest earners was 83% which increased to 98% if income was received from interes...
Which factor has been least associated with the rapid growth of many economies recently?
Changes in the world oil market and their effects Founded in 1960, the Organisation of Petroleum Exporting Countries (OPEC), consisted of five cou...
Compare the derivation of a demand curve for a product using the marginal utility theory with the derivation using indifference curve theory.
Explain the reasons why people demand money according to the liquidity preference theory. Consider which reason is the most important.
Economic theory produces a precise equilibrium outcome, often in an idealised market situation, but in reality things are much less certain. Discus...
Explain why some countries are referred to as developing. Suggest why the expected increase in population in developing economies is thought to be ...
Governments have a range of macroeconomic aims apart from economic growth.
'Lack of efficiency in the use of resources is not due to the market's inability to function. It is due to government intervention in a system that...
Monetary policy and economic growth Between 2009 and 2014, the central bank of the United Kingdom (UK) used policy measures of quantitative easing ...
Choice is an essential part of economics. Sometimes consumers change their choices either when shops have special offers on previously very expensi...
Explain the difference between price leadership and price discrimination.
Explain why people demand money according to the liquidity preference theory.
Economic models have little practical relevance. Discuss whether this is true of the analysis of how a fall in interest rates might affect an econo...
Developed countries sometimes prevent investment in rural areas while developing countries often encourage rural development. Consider why this mig...
The driving force of some governments is to bring the benefits of competition to formerly monopolised markets.