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.
Explain what economists mean by a 'deflationary gap' and discuss why this could be considered problematic for an economy. Use a diagram to illustra...
Explain the quantity theory of money. Consider its relevance to economic policies that might be used to control inflation.
Economic development can only be achieved by economic growth and this depends solely on higher levels of government investment. To what extent woul...
A production possibility curve for a country is shown. What would cause the shift from PP to P₁P₁?
A government wants to move its economy away from central planning towards a market economy. Which policy would be consistent with this aim?
What would be a determinant of a country's production possibility curve boundary?
What justifies government intervention in the provision of a merit good such as education?
The diagram shows the supply of limestone from quarry X and quarry Y at two prices. What is the measure of the responsiveness of supply as the pric...
What is a perfectly contestable market?
The diagram shows the demand for and supply of cream. The original equilibrium is point X. Strawberries and cream are complementary goods. If the p...
Hunters in Mozambique want to extract wild honey from beehives. They find the beehives by following birds known as honeyguide birds who want the be...
What follows if the income elasticity of demand for a good has a value of –0.2?
The diagram shows the relationship between price (P) and demand (D) for a normal good G. What would cause a shift to D₁?
What is most likely to cause an increase in the consumer surplus in the market for a normal good?
The cross elasticity of demand between two products, X and Y, is negative. What would be the immediate effect of a rise in the price of product Y?
Which combination of events is most likely to leave the demand curve for a normal good in the same position?
Which of the following is a transfer payment?
Too much sugar causes an increase in a consumer's weight. A government has introduced a 'sugar tax' on the consumption of soft drinks that have a h...
A government intends to introduce a minimum price for rice, a maximum price for heating oil and a tax on chewing gum. Who, in each market, is meant...
A Southern African government was concerned about the market influence of a large producer and was keen to take control of the company. What might ...
A country has a fixed exchange rate. Which combination of problems would be most likely to cause the country's government to reduce taxation and lo...
How can a change in consumption that increases unemployment be illustrated on an aggregate demand and aggregate supply diagram?
What is not an item in a country's current account of its balance of payments?
A country decides to remove all its tariffs and engage in free international trade. What will be the final decision the country has to make before ...
What is assumed to be constant when drawing an aggregate demand curve?
The diagram shows the imposition of an import tariff. Sw is world supply. Sw + tax is world supply after the tariff is imposed. Which statement is ...
An economy is experiencing a period of deflation. What must be happening?
A British citizen buys a house in the US which he rents to American citizens in order to receive an income for himself. Where will the initial purc...
Under a system of floating exchange rates, what determines the foreign exchange value of a currency?
A country with a balance of trade deficit raises interest rates. How may this help to reduce the deficit in the short run?
An economy is currently in the position PY shown on the diagram. Which short-run effects is government spending on education likely to have on unem...
The diagram shows the AD/AS curves for an economy. Which policy would reduce the price level from P₁ to P2 as shown?
Trade tensions between China and the United States At a World Economic Forum meeting in Switzerland in 2017, the Chinese President re-affirmed his ...
Explain, with the help of diagrams, how (i) constant and (ii) increasing opportunity costs determine the shape of an economy's production possibili...
Explain, with the help of a diagram, the disadvantages to consumers of introducing a maximum price in a market for an essential food item.
Explain, with the help of a diagram(s), how changes in aggregate demand and aggregate supply can cause inflation in an economy.
Egypt's economic difficulties Table 1.1: Egypt, selected economic indicators, 2014–2019 | | Consumer Price Index (base year 2000) | Current accoun...
Section B Answer one question. (a) Explain how economists use the concept of elasticity to distinguish between inferior goods and necessary goods ...
Section B Answer one question. (a) Distinguish between regressive and progressive taxes and explain whether you would use an income tax or a speci...
Section B Answer one question. (a) Explain, using examples, what is meant by ‘protectionism' and show with the help of a diagram how export subsid...
Section A Answer this question. Difficult times for OPEC and Nigeria The Organisation of Petroleum Exporting Countries (OPEC) has 13 members and pr...
When can an economy be said to be economically inefficient? A when it is possible to make some people better off without making other people worse ...
The diagram shows cost and benefit curves for a good in a free market. [Figure]. Which combination is correct? actual output social optimal level o...
A food processing firm discharges waste water into the lake next to its factory. What would reduce the difference between the private cost and the ...
The diagram shows attainable indifference curves, I₁ and I2, for good X and good Y. [Figure]. Which point represents the highest level of satisfact...
The table shows the substitution effect and income effect for a Giffen good and an inferior good as the price of the good changes. Which combinatio...
In many developed economies, large and small firms often exist side by side in the same industry. What is most likely to explain the survival of th...
The diagram shows short-run (SRAC) and long-run (LRAC) cost curves for a firm. [Figure]. Which statement is correct? A When each of the three SRAC ...
What is most likely to rise as a firm expands? A energy costs per unit of output B the cost of components C the cost of monitoring workers D the ra...
In the long run, what is a feature of monopolistic competition, but not of perfect competition? A a small number of buyers B product differentiatio...