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 government fixes a maximum price for wheat flour below the market equilibrium price. After the maximum price is imposed, which statement is not...
The income tax structure of a country has two elements. 1 The first $20000 of earned income is not taxed. 2 Any income earned above $20000 is taxed...
In 2014 Egypt reduced subsidies on fossil fuels such as gasoline and diesel. The diagram shows the initial equilibrium at point X. [Diagram] What w...
What is an aim of a transfer payment?
There have been recent calls for the UK government to nationalise its railways. What would not be a reason for nationalising the railways?
The diagram shows a shift in the aggregate demand curve, from AD1 to AD2. [Diagram] What might have caused this shift?
The table shows the consumer price index (CPI) and national output at current prices in 2014 and 2015 for an economy. [Table: year, CPI, national o...
Between June and the end of July 2016 the UK pound sterling depreciated by 11% against a basket of currencies of the UK's major trading partners. T...
Which item is not included in the current account of a country's balance of payments?
A government wishes to raise the value of the external exchange rate of its currency. What should it do?
The index for a country's terms of trade changed from 100 in year 2015, to 104 in year 2016. What could have caused this change?
The table shows the production possibilities of cloth and food in four countries using all of their resources. [Table: country, cloth (million unit...
The diagram shows the domestic and world demand and supply for a good. [Diagram] The government imposes a tariff on imports of the good. What will ...
What is an example of a supply-side policy?
Which policy mix is most likely to be effective in the short run for reducing inflation in a closed economy? [Table: fiscal policy, monetary policy...
The problems of measuring inflation Inflation is a simple concept, but price indices are surprisingly hard to construct. Content removed due to cop...
Explain how capital goods contribute to production in a modern economy and how capital is rewarded.
Explain the factors that can affect the value of the price elasticity of supply for a product.
Explain the difference in the way tariffs and quotas operate as methods of protection.
European Union (EU) to boost protection of steel industry as imports flood in The EU is expected to strengthen its protection against steel import...
Explain the significance of cross elasticity of demand values that are negative, positive and zero.
Explain how the rate of deflation is measured and the impact of a period of deflation on an economy.
Explain the features of a public good. Consider whether a motorway (highway) provides an example of a public good.
The air transport market in India Over the past 20 years or so, global air transport markets have become more competitive. This is especially the c...
Using examples, explain why some goods cannot be provided as private goods.
In August 2015, the Chinese Government devalued its currency, the yuan, by around 5%.
Using a diagram, explain the significance for an economy of the interaction of aggregate demand and aggregate supply.
Which statement is correct? A External cost equals social cost minus private cost. B Private cost equals external cost minus social cost. C Social ...
What is a negative externality from consumption? A a new road that results in more sales at shops in the town centre B a successful promotion of he...
Which type of efficiency is identified by price = marginal cost? A allocative B dynamic C productive D technical
A consumer can purchase two goods, X and Y, from a given income. What will cause the consumer's budget line to make a parallel shift to the right? ...
The line RS in the diagram shows the different combinations of goods X and Y that a consumer can afford with her present income. [Figure: Diagram s...
The table shows the total revenue and marginal cost of a firm at different levels of production. production (tonnes) | total revenue () | marginal ...
The diagram shows a profit-maximising firm's cost and revenue curves. [Figure: Diagram showing cost, revenue on y-axis, output on x-axis, with curv...
What must be different between the consumers of a product to enable profitable price discrimination by the producer? A levels of income B price ela...
An example of forward vertical integration for a computer manufacturer would be a merger with A another computer manufacturer. B a computer retaile...
The diagram shows the short-run cost curves and the long-run average cost curve for a firm. [Figure: Diagram showing cost on y-axis, output on x-ax...
A cartel has been successful in regulating output. However, recently it has shown signs of breaking up. Which feature of the market could have caus...
What would be most likely to allow the survival of small firms in an economy? A an increase in the cost of borrowing from commercial banks B an inc...
A private company operates a coal mine which employs 400 workers. The mining operations have polluted the environment and created external costs. I...
What is an advantage of using tradable pollution permits to control pollution? A Tradable permits are restricted to the firms to which they are iss...
Where might government intervention to raise the wages of a group of workers be justified in order to prevent their exploitation? A in an industry ...
There is a decrease in the supply of female labour. What will be the likely effect on male and female wages? male wages | female wages ---|--- A | ...
Which criteria are used in official labour market surveys to determine whether a person should be classified as being unemployed? eligible for rece...
To increase the number of cleaners at a local school from 10 to 11, the employer has to raise the hourly rate of pay from $3.00 to $3.25. What is t...
What would result in a reduction in labour costs per unit of output? A an increase in average earnings which is less than the increase in employmen...
Out of any addition to national income, 25% is spent on imports, 15% is paid in taxes, 10% is saved and the rest is spent on domestically produced ...
Which economic indicator uses the following three components to obtain a value between 0 (low) and 1 (high)? • GNI per capita • life expectancy • e...
What is not a possible benefit to a developing country of a multinational company investing in a new factory in that country? A acquiring improved ...
Which policy is best to reduce cyclical unemployment? A increase corporation tax B increase the exchange rate C reduce the budget surplus D reduce ...