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.
Which formula is used to calculate a country's terms of trade?
Country X forms a customs union with country Y. X then ceases to produce its own cars and instead imports cars from Y. Country Y diverts some of it...
The table shows the ability of two countries to produce two commodities when they use all of their resources for that product. [Table showing coun...
In 2014, Poland was the world's largest exporter of apples. 55% of the crop went to Russia. Then Russia banned the imports. What would not have pre...
Monetary policy can be used to increase the level of business activity. Which action illustrates this?
Argentina announces lifting of currency controls Fig. 1 Argentina's foreign exchange reserves (monthly) [Figure 1.0] Source: CEIC Argentina's new g...
Section A Answer this question. Japan's Economic Difficulties Table 1: Japan Consumer Prices Index, June 2013-December 2015 Consumer Prices Index...
The world market for rice Table 1: The World Price of Rice (World average price index, 2004 = 100) Year | Rice Price Index ---- | --- 2011 | 242 20...
Explain the factors that determine whether the price elasticity of demand for a good is likely to be relatively inelastic.
Explain how a production possibility curve with increasing opportunity costs illustrates the consequences of a government's choice to produce more ...
Show how exchange rates are determined in a freely floating system. Explain how a high rate of inflation in an economy can lead to depreciation in ...
Which is the most likely reason for the privatisation of state-owned industries?
A town council estimated the costs and benefits of operating a bus service in 2015 and 2016. These are shown in the table. 2015 $000 2016 $000 pri...
At major sporting events, unofficial markets occur where tickets originally sold by the event organiser are resold at prices higher than the origin...
Which statement describes the operation of the law of variable proportions?
The diagram shows two indifference curves and two budget lines relating to two goods X and Y. [Diagram] The consumer's initial position is at point...
Firms can grow internally or externally. What is a characteristic of external growth?
The diagram shows a firm's cost and revenue curves. [Diagram] The firm embarks on a successful $100 million advertising campaign. How will this aff...
What would encourage an increase in the number of small firms?
The diagram shows a firm's cost and revenue curves. [Diagram] The firm changes its objective from sales revenue maximisation to profit maximisation...
The firms in an industry decide to collude informally and follow a price leader. What will reduce the likelihood that the collusion will succeed?
The theory of contestable markets can be applied to
According to the law of diminishing returns, what happens as more of a variable factor is combined with a fixed factor?
Firm X is considering whether to co-operate with its rival so that their joint profit is 4000 a month (2000 each). It calculated that, if it did no...
Governments intent on improving living standards for individuals with low incomes sometimes impose rent controls (maximum prices) on houses rented ...
In certain countries benefits are provided to individuals on low income. As their income rises the benefits are reduced and income tax has to be pa...
What would help a trade union to negotiate an increase in the wage rates of its members without causing a reduction in the numbers employed?
An increase in the world price of oil increases the demand for deep sea divers from D₁ to D2 as shown. [Diagram] What is the change in the economic...
The table gives unemployment rates (%) for four countries in 1993 and 2002. UK Japan France Italy 1993 10.5 2.5 11.4 10.1 2002 5.0 5.4 8.8 8.5 Wh...
The diagram shows the saving and investment curves of a closed economy with no government. [Diagram] The potential level of output is OYp. Which di...
The table shows the values of selected macroeconomic variables over a two-year period. year 1 (m) year 2 (m) investment 250 350 saving 280 340 gov...
What will cause a fall in the quantity of money demanded?
What is not included in the measurement of national income?
Which row correctly identifies net injections into a country's circular flow of income?
Rapid economic growth is claimed by some to harm the environment. Which outcome would not harm the environment?
A country has labour shortages in some areas and high unemployment in others. Which government policy would help remove this imbalance?
Which is likely to hinder a supply-side stimulus to the economy?
What is most likely to influence subsequent increases in national income as a result of a government policy of reduced interest rates?
What might influence the ability of a government to use income taxation to redistribute income from richer to poorer groups?
In an economy no one can be made better off without making someone else worse off. What can be deduced from this? A Individuals are the best judges...
In 2015, a large mining company said it would reduce the number of staff by 6000 and sell its less profitable mines in an attempt to become more ef...
The production of a firm which operates in an imperfectly competitive market gives rise to external production costs. Which statement about this fi...
In the UK in 2015 there were two methods of charging for water supply. 1 a fixed charge giving the consumer the right to consume water at zero pric...
The diagram shows the cost curves for a firm. price MC ATC AFC Q1 Q2 output What does the firm experience as it increases output from Q₁ to Q2? A d...
Firms X and Y merge in a horizontal integration. What must be true about the industry and the stage of production in which X and Y operate? indust...
In the diagram the curve TC shows the relationship between a firm's total costs and its level of output. total cost TC R P O Q output At output OQ ...
Which diagram shows the total revenue function for a firm in perfect competition? A TR revenue Ο output B revenue TR Ο output C TR revenue Ο output...
Many public utilities can be described as 'natural' monopolies. Which statement best describes the situation leading to a 'natural' monopoly? A The...
Increased advertising by a firm in an imperfectly competitive industry leads to an increase in demand for the industry's product but a fall in the ...
An industry consists of a dominant firm, which acts as a price leader, and a large number of small firms. Which statement about the profit-maximisi...