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.
A small European airline currently produces at point X on its long-run average cost curve. It wants a bigger share of the European airline market a...
A firm sells its product to consumers in two separate markets, M and N. Under which conditions will a policy of price discrimination between the tw...
A community relies on a private company to supply electricity using a coal-fired power station. The power station causes air pollution which impose...
Some workers in a low-paid job decide to work longer hours to increase their disposable income. However, this decision reduces state-provided benef...
Which policy is likely to be the least effective means of producing a more equal distribution of income amongst households? A the imposition of min...
The table shows the main characteristics of employment in two occupations. occupation X occupation Y average annual wage $100000 $60000 number of ...
The table shows a firm that has four possible methods of production to make its desired output. Each method has a different cost and causes a diffe...
How can GDP at market prices be calculated if GDP at factor cost is known? A add taxes, add subsidies B add taxes, subtract subsidies C subtract ta...
Which characteristics of the population, the size of the informal economy and the rate of inflation would mean that Gross Domestic Product (GDP) is...
The table gives the percentage of employment in the primary, secondary and tertiary sectors in four countries. Which country is most likely to be a...
The diagram shows unemployed persons (in millions) for the years 2000 to 2016 for the European Union. [Figure]. During which period was the highest...
A large coal mine is forced to close because of falling demand for coal as consumers switch to less-polluting fuels. The government organises retra...
Economists have proposed that the best policy to promote development is 'trade not aid'. What is implied by this proposal? A Developing countries s...
The table shows the values of selected macroeconomic variables over a period. year 1 year 2 (m) (m) investment 200 220 saving 180 190 exports 100 ...
What is most likely to increase if an economy enters a negative output gap? A business confidence B economic growth rate C inflation rate D unemplo...
Under which conditions will a Keynesian expansionary fiscal policy be most likely to take an economy out of a recession without too much inflation?...
What would cause an increase in the transactions demand for money? A a fall in the price of bonds B an increase in nominal national income C an inc...
What may lead to a reduction in bank lending in a country? A an increase in commercial banks' balances with the central bank B an increase in the l...
The table gives details of the inflation and unemployment rates for different countries in 2008 and 2011. inflation rate (% per annum) unemploymen...
The government decides to raise the rate of Value Added Tax (General Sales Tax). What does this suggest is the government's main macroeconomic obje...
Which statement is correct? A In a command economy firms compete and profit maximise allocating resources efficiently. B In a command economy resou...
The diagram shows the market for a product, the production of which has both external costs and external benefits.
The government is considering building flood defences along a river. It has calculated the costs and benefits as follows. costs benefits $m $m pr...
The graph shows the total utility (TU) obtained by a consumer from eating biscuits over a period of one hour.
The diagram shows budget lines for normal goods X and Y.
A consumer spends all of their income on two goods, Y and X, and is at position E. The price of X falls and the price of Y remains constant. The gr...
What defines average variable cost? A total cost divided by the quantity of the variable factor employed B total variable cost divided by the quant...
What cannot be changed in the short run? A the level of stock held by firms B the level of technology available C the market price of goods D the o...
The market structure of an industry changed from being an oligopoly to monopolistic competition. What is most likely to have increased?
A firm has total production cost of $200000. Its average fixed cost is $120 and its average variable cost is $80.
What is a characteristic of monopolistic competition? A abnormal profits in the long run B advertising supporting product differentiation C all fir...
The diagram shows the marginal cost (MC), average variable cost (AVC) and average total cost (ATC) curves of a profit maximising firm in a perfectl...
The table shows the average incomes of the richest 20% of households and the poorest 20% of households in the UK (2015–2016), and the effects of go...
Assuming there are no externalities, where would a nationalised firm set output to maximise social welfare?
What is the specific advantage of pollution permits, when compared with an alternative policy of taxes levied on the quantity of pollutants emitted...
Which diagram correctly shows the relationship between the average product (AP) and the marginal product (MP) of labour, given that the quantities ...
The diagram shows the short-run relationship between the total output of a firm and the quantity of labour.
Company X reduces its number of workers from 250 to 200 and as a result its output decreases from 5000 to 4800 units per day. Company Y increases i...
What is not included in the measurement of national income? A age-related pensions B dividends obtained from foreign investments C housing authorit...
The graphs show the Human Development Index and its component parts for Zimbabwe.
What makes it possible for the increase in real national output to exceed the increase in labour productivity? A an increase in employment B an inc...
The table shows the annual percentage (%) change in China's GDP and the contribution of some of its component parts between 2006 and 2012. 2006 20...
What is a cause of seasonal unemployment? A a general decrease in the demand for goods and services B a lack of necessary skills in the workforce C...
Which row correctly identifies leakages from a country's circular flow of income? private sector public sector trade sector (S > I) (T > G) (X >...
In a closed economy with no government expenditure and no taxation, the initial income is $5000 million. All savings are carried out by consumers, ...
The diagram shows a liquidity preference curve (LP) representing the demand to hold money in relation to the rate of interest and the money supply ...
An increase in which of the following will cause a decrease in investment spending? A business confidence B company profits C interest rates D nati...
The graph shows a shift in the liquidity preference curves for an economy from LP₁ to LP₂.
What is most likely to increase in the short run following a rise in an economy's rate of inflation caused by a demand-side shock? A the current ac...
Which combination of policies is most likely to increase output? fiscal policy monetary policy A decrease budget deficit decrease interest rates B...