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.
The amount of training undertaken in a mixed economy is not socially optimal. What could explain this? A Experienced educators are a scarce resourc...
Four bus companies control more than two-thirds of the market in a country. Critics claim that these companies fix prices on some routes to maximis...
On a diagram the slope of a consumer's budget line becomes steeper. What can definitely be concluded from this? A The consumer's income has fallen....
The diagram shows two indifference curves and two budget lines for goods X and Y. [Figure 6.1] The consumer's initial position is at point F. The c...
The table shows the total costs at different levels of output for a firm producing chairs. | output (chairs) | total cost ($) | |---|---| | 0 | 50 ...
At which level of output will a firm achieve the aim of sales maximisation? A where AC = AR B where AC = MC C where MC = AR D where MR = zero
In market economies firms can operate under monopolistic competition.
When will the 'principal-agent' problem occur? A when managers are not allowed to become shareholders B when members of a cartel collude to gain hi...
The table provides data on the number and value of mergers in Europe and North America between 2014 and 2017. | year | Europe | North America | |--...
Charities distribute plastic bags to households that householders can fill with clothes they no longer want. The charities then collect them and se...
What could prevent a market failure? A barriers to entry B building regulations C growth of firms D persuasive advertising
When will a society have achieved an equitable distribution of income? A when all individuals have equal job opportunities B when all workers are p...
'The addition to revenue which results from employing one additional unit of a factor of production, while the quantities of all other factors of p...
The alternative to work is to have leisure time. The diagram shows a worker's decision of how many hours of labour to supply. [Figure 17.1]
By moving from rural areas to large urban areas to work, how might economic migrants create benefits in both areas in developing countries? A by im...
Which change is most likely to increase both economic growth and economic development in the long run? A a decrease in the saving ratio B an increa...
The table gives population data from the United Nations. | | low-income countries | lower-middle-income countries | upper-middle-income countries |...
The diagram shows selected US labour statistics from 2001 to 2013. [Figure 21.1]
What indicates that a developing country is becoming less dependent on foreign aid? A It gains foreign currency by exporting a range of raw materia...
How must GDP at market prices (producer prices) be adjusted to find GDP at factor cost? A by adding exports and deducting imports B by adding net p...
The diagram shows the equilibrium levels of national income in a closed economy with no government, at two levels of investment, I₁ and I₂. [Figure...
An upward shift of the curve relating consumption to national income could be caused by A a reduction in taxation. B an increase in investment. C a...
The table gives population data from the United Nations. | | income level | price level | interest rate | |---|---|---|---| | A | fall | fall | ris...
In 1936 Keynes explained how economic policy can be used to increase aggregate demand and prevent an economic depression.
A central bank increases the money supply in an attempt to stimulate investment and growth when the economy is in recession.
Which statement describes what the Phillips curve shows? A An inverse relationship exists between inflation and unemployment. B As employment incre...
To stimulate economic growth the government increases the size of its budget deficit and funds this by increasing the money supply.
Which diagram shows a monopolistically competitive firm in long-run equilibrium? A revenue MC AC /cost MR AR Ο Qe output C revenue /cost MC revenue...
When will a cartel find it most difficult to fix the market price of its product? proportion of firms in the industry that are members of the carte...
Which policy is not designed to correct a market failure? A government provision of healthcare B price controls on large firms C regulations to lim...
What does the accelerator principle explain? A how changes in consumption lead to changes in income B how changes in income lead to changes in cons...
What belief do Keynesians and Monetarists share? A Expectations rapidly adapt to changing circumstances. B Fiscal policy is the most effective econ...
Which statement is most likely to be made by an economist from the Keynesian school? A Any deviation from full employment will only be temporary. B...
In pursuit of well-being It has been said that the mark of success of a government is raising the quality of life or the well-being of the people i...
Discuss whether competitive markets in the private sector are the best way to achieve an efficient allocation of resources.
Explain what is meant by a 'consumer's equilibrium position' in indifference curve theory and how it can be used to form a demand curve.
'A firm is fully aware of market conditions and its best rational interest would be achieved by pursuing the clearly defined objective of maximisin...
After negotiation, the workers in an industry obtained from employers higher wage rates. The employers' spokesperson said 'the cost of the deal wou...
Explain what economists mean by an inflationary gap and discuss why this is considered to be an economic problem. Use a diagram(s) to support your ...
'Developing countries have low levels of productivity and a high dependency ratio.' Explain the meaning of these two characteristics and consider w...
The impact of economic concentration By locating closely together manufacturers can often gain economic benefits. The makers of industrial machines...
Use indifference curve analysis to explain the derivation of an individual demand curve for a normal good.
Explain how the fixed and variable costs of a perfectly competitive firm affect its survival in the short and long run.
'Government intervention in the microeconomy always improves efficiency.' Discuss the validity of this claim.
In January 2018 tax reductions were introduced in the US, and the Federal Reserve Bank (the US central bank) announced it would raise interest rate...
Compare the characteristics of developed and developing countries.
Explain the Keynesian theory of the determination of the rate of interest.
In pursuit of well-being It has been said that the mark of success of a government is raising the quality of life or the well-being of the people ...
A tourist visits the coast for a holiday. On her first day, she visits the local tourist office for information, goes for a swim in the sea, spends...
Which aspect of a planned economy might be viewed unfavourably by a consumer but favourably by a producer?