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.
An economy has a high level of unemployment and a large balance of payments deficit on the current account. What would be a suitable policy for the...
Which statement about the problem of scarcity is correct?
A firm is considering whether to buy a piece of capital equipment which will cost $2000. It estimates that the equipment will last for two years. T...
The diagram shows the production possibility curve XX of an economy that produces consumer goods and capital goods. If the economy moves from point...
Arfan and his brother Ben own and run a fishing business together. They have one employee, Cephas, who helps on the days when they fish. They emplo...
The market price of a product rose from $8 to $10 and as a result the market demand fell from 20000 to 8000 a week. Consumer X's demand declined fr...
The price of good X rises by 10%. As a result, the demand for a substitute good Y rises by 20%. What is the cross-elasticity of demand for good Y w...
The diagram shows the supply curve of coffee in an economy. The market equilibrium is initially at point X, but a change moves it to point Y. What ...
In the diagram OS₁ and OS₂ are two straight-line supply curves. As price increases, the elasticity of supply
In which case will a given increase in the supply of a good cause the greatest fall in the price of the good?
Which combination of changes would enable the price mechanism to allocate resources more efficiently in a monopoly market?
A firm wishes to build a factory extension. Permission is required from the government because the extension may increase
The diagram shows the private and social costs and benefits that arise from the consumption and production of a good. If there is no government int...
The diagram shows the demand for and supply of a foreign-made mobile (cell) phone where the initial position in the domestic market is X. Importers...
The government imposes a maximum price of P₂ on a product. What will be the position after this action?
What is an effect on a country of free trade?
What is meant by dumping in international trade?
As a result of a trade agreement, toys produced in Africa can be supplied to European markets. These toys are much cheaper than similar toys produc...
Which international transaction is correctly matched to the part of the balance of payments account in which it is recorded?
The diagram shows annual average labour productivity growth for three groups of countries during two time periods. Which activity in which country ...
The diagram, which shows part of the process that causes the aggregate demand curve to slope downwards to the right, is incomplete. Which words cor...
The graph shows the rate of inflation in a country in a 5 year period. What can be concluded from the graph?
What might explain an increase in the volume of a country's imports?
What is the most likely consequence of an increase in a country's balance of payments deficit?
Which economic change might contribute to both cost-push and demand-pull inflation?
The diagram shows the market for Japanese Yen. What could have caused the change in the supply of Yen from S₁ to S₂?
To reduce a deficit on the current account of the balance of payments, a government introduces a limit on the foreign exchange its people and firms...
Which question does not directly refer to the basic economic problem?
The diagram shows the change in an economy's production possibility curve as it grows in the long run. Which movement from point X is most likely t...
What term is used by economists for the income received by the factor of production enterprise?
The diagram shows the demand curve for housing. [Figure 5.1] What is not assumed to remain constant when drawing this curve?
What does not cause the demand curve for cars to shift to the right?
An individual reacts to a 5% increase in the price of good X by increasing the proportion of his income that he spends on good X from 2% to 3%. If ...
The cross-elasticity of demand for good X with respect to good Y is –0.5. What can be concluded from this?
The diagram shows a supply curve for beef. [Figure 9.1] What explains why the supply curve for beef slopes upwards?
Which business is likely to be the slowest to alter its output in response to a sustained increase in demand for its product?
In a particular year, 12000 units of a good are sold at $1 per unit. In a later year, 14000 units are sold at $1.20 per unit. If consumer tastes ha...
The diagram shows demand and supply curves for petrol (gas). The initial equilibrium is at X. What could be the new equilibrium if there were a lar...
The diagram shows an individual's demand curve for a commodity. The supplier of the commodity charges a unit price of OP but consumers are currentl...
In 2011, the Health Ministry in a country encouraged parents to have their children vaccinated against measles. The parents did not have to use the...
A gardener plants bamboo to create an attractive environment along the roadside. The bamboo grows into the garden of his neighbour, who removes the...
A cost-benefit analysis of a proposed underground railway produced the following statistics. annual costs and benefits $ million annual capital cos...
What is the best example of what was once a public good becoming a private good?
The diagram shows the market for onions in equilibrium at point X. The government has a stock of onions and wants to establish a new equilibrium at...
The diagram illustrates the production possibility curves for countries S and T producing goods X and Y. Countries S and T specialise in the produc...
What is the most likely reason why Pakistan might reduce its trade barriers on imports?
A particular good in the Barbados market could be supplied by domestic producers, or producers in Trinidad & Tobago, or producers in the USA, at th...
A Japanese car manufacturer established a successful factory in France. How would this be shown in the Japanese balance of payments? [Table 22.1]
The graph shows changes in the unemployment rates in countries X, Y and Z over the period 2000 to 2010. All three countries faced recession between...
Which supply-side measure is most likely to produce short-run growth in a country's aggregate supply?