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 likely to follow if a central bank sets negative interest rates? A an increase in government revenue B an increase in the rate of inflation...
The Consumer Prices Index (CPI) fell by 3% in a year. Unemployment was regarded as unacceptably high. Which combination of policies would a governm...
Other things being equal, what is most likely to result from an increase in a country's interest rates? A a capital inflow B a depreciation of the ...
What is an example of external benefits?
The diagram shows the marginal private benefit (MPB), the marginal private cost (MPC) and the marginal social cost (MSC) for firms in an industry. ...
What is not held constant when calculating the income effect of a change in the price of a good?
The diagram shows a consumer's initial budget line is GH and a set of indifference curves IC₁, IC2 and IC3 for goods R and S. The original equilibr...
Firms X, Y and Z are profit maximising private firms. X operates in a perfectly competitive industry, Y in a monopolistically competitive industry...
What are the correct formulae for calculating average cost (AC) and average revenue (AR)? AC AR key MC = marginal cost MR = marg...
A Hawker Centre where there are many outdoor stalls is a popular and cheap place to eat in Singapore. They sell a large variety of food but many se...
What is an example of horizontal integration?
The diagram shows a firm that is a sales revenue maximiser. [Figure 10.1]
What is an essential feature of the principal-agent problem?
Which characteristic of an industry works towards reducing the barriers to entry for new firms?
The government wishes to increase the use of a service with positive externalities. Which policy measure is most likely to produce the desired out...
The government imposes a maximum wage limit on recording artists. What must result in the short-run if the measure is effective?
The diagram shows the market for labour in an industry in the short-run. [Figure 15.1]
A country introduces a national minimum wage (NMW) of 10 per hour. In which industry is the NMW likely to cause the most unemployment? equilibriu...
Economics textbooks state that for a firm in imperfect competition labour is a derived demand. How is the demand curve for labour derived?
The diagram shows changes in the numbers employed in four different industries in a city between 2012 and 2017. [Figure 18.1]
What is likely to make the national income of a country less reliable as an indicator of the standard of living?
What is not included as a weighted indicator of poverty in the Multidimensional Poverty Index (MPI)?
What term is given to short-term unemployment when people are changing jobs?
Why might GDP remain unchanged despite a rise in labour productivity?
When is an increase in national income most likely to induce an increase in investment spending?
In a four sector economy in equilibrium, these values exist. $m investment 15 exports 40 government expenditure 50 savings 15 imports 45 taxes X ...
In a closed economy with no government C = 40 + 0.7 Y and I = 50, where C is consumption, Y is income and I is investment. What is the equilibrium...
An increase in the money supply leaves the price level unchanged. What could explain this?
The table shows the elasticity of demand for money and the elasticity of demand for investment with respect to a change in the interest rate for fo...
When making comparisons of living standards between different countries, what is not a reason why they may be misleading?
The table shows the annual rate of inflation (consumer prices) and the annual rate of unemployment for five countries in a recent year. rate of in...
An economy has a balance of payments trade surplus and a high level of inflation. What is most likely to be an appropriate action for the governme...
European countries have some of the highest GDP per capita levels in the world. They also have some of the highest life expectancy figures at birth...
A dictionary defines efficiency as ‘the power to produce the result intended’. Explain what is intended by achieving economic efficiency and why it...
Explain the difference between perfect competition and monopoly and, with the help of diagrams, distinguish between normal profit and supernormal p...
Trade unions, minimum wage legislation and large powerful businesses invalidate the conclusions of the traditional economic theory of wage determin...
Distinguish between structural and frictional unemployment. Consider which would be likely to have the greater negative effect on an economy.
Consider the extent to which the commercial banks can influence the money supply.
‘Both developed and developing economies can experience high levels of unemployment, high rates of inflation and large current account deficits. Th...
Infrastructure is restricting Indonesia's economic development One feature of Indonesia's economy that has been hampering its economic and social d...
Explain, with the aid of a diagram, diminishing marginal utility and its link to indifference curves.
A businessman claimed it was difficult to make decisions as his business was subject to uncertainty and interdependence. Discuss the methods used b...
Explain how a firm derives its demand curve for labour and consider how the structure of the product market in which the firm operates affects the ...
Explain the difference between actual growth and potential growth.
In 2016, governments in some countries were concerned about inflation, whilst the governments of other countries were concerned about recession.
A free market economy operates to the benefit of both consumer and producer to achieve the most efficient outcome, and therefore there is no role f...
Inequalities of wealth In 2015, the vast and growing gap between rich and poor was revealed in a report from the charity Oxfam. Oxfam said that bet...
Explain why the concept of the margin is significant in the economic theory of consumer behaviour.
In recent years the prices of many electronic products have fallen as sales have increased. Research to improve the products is expensive but there...
Economic theory is often very precise in its explanation but not very useful in its application to reality.