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.
There are two firms in an industry. Firm X faces a choice. It can either act independently or work with its rival. If it acts independently its pro...
What explains the kinked demand curve model of price rigidity in oligopoly? A collusion between all firms in the industry in the setting of prices ...
Which policy is not designed to correct a market failure? A government provision of health care B removing import quotas C price controls on large ...
A tax system allows people to earn a certain sum of income free of income tax. On income above this level, tax is levied at a constant rate. Which ...
What is the best example of nudge theory as applied to the prevention of tax evasion? A employing an extensive administration to ensure detection o...
In many countries it has been observed that, when high marginal rates of income tax imposed on richer groups are reduced, the tax revenue raised in...
The diagram represents the market for labour. wage W N D S₁ 1 S2 number of workers What would be the effect on transfer earnings and economic rent ...
How might real GNP per head be adjusted to make it a more reliable indicator when comparing standards of living in different countries? A adjustmen...
Which combination of circumstances is most likely to lead to an increase in a country's budget deficit? total GDP | unemployment | discretionary g...
To combat a rising crime rate, the government decides to recruit additional police officers who are paid a wage equal to that which they previously...
What could not exist in a closed, mixed economy? A a balance of trade deficit B a budget deficit C household debt D national debt
What does the accelerator principle state? A Consumption is a function of the rate of change of income. B Income is a function of the rate of chang...
What would not be classified as structural unemployment? A a car worker who is replaced by a robot on the production line B a coal miner whose mine...
What represents a leakage from the circular flow of income in an economy? A a balance of trade surplus B a government budget surplus C reduction in...
What will cause a downward shift in the aggregate demand curve of an economy? A an increase in firms' stocks of raw materials B a decrease in the e...
Which policy is most likely to raise the level of total demand in an economy? A an increase in direct taxation matched by a reduction in indirect t...
The government cuts taxes and increases its spending in order to create jobs during a recession. When will a resulting budget deficit be least like...
In 2011, the global money supply, narrowly defined, rose 11% and broadly defined money increased roughly 8%, as central banks continued efforts to ...
Which policy measure would be most likely to reduce a developing economy's birth rate and its household saving ratio? A an increase in student tuit...
Why do governments often subsidise the cost of entrance to museums?
The table shows the marginal costs of production and marginal benefits of consumption.
A cost-benefit analysis concludes that a nuclear power station project might be socially worthwhile, although it will take 10 years to bring into o...
The diagram shows a budget line indicating combinations of good Y and good X that a consumer could buy with a given income. The combinations shown ...
The table shows some of the assumptions of perfect competition and monopolistic competition.
What is a feature of a natural monopoly?
A firm is already the monopoly producer of product X.
What makes collusion between firms in an oligopolistic industry more difficult?
What is the defining characteristic of an oligopolistic industry?
A perfectly competitive firm is currently producing at a level of output where its marginal cost is above both its average total cost and the marke...
In which industrial sector is a small firm most likely to survive?
A firm wishes to avoid attracting competition from new entrants. It charges the maximum price that is consistent with this aim.
In which market structure will the industry price be unaffected by a change in the output of one individual firm?
In 2015 the price of oil fell dramatically. As a result, 65000 jobs were lost in the North Sea oil industry.
An actor is paid $100000 a year. The next best paid job he could get is as a lecturer at $60000 a year.
What is not an outcome of the existence of private property rights?
A state-owned concern is privatised as a monopoly.
Which policy is most likely to both increase productivity and improve equity?
Which indicator is least likely to be used when measuring the comparative economic development of a country?
What needs to be removed to improve nominal GDP as a measure of comparative living standards?
The diagram shows the age structure of the Polish population in 2015 and the predicted structure in 2050. Since 2013, the retirement age in Poland ...
The table gives information on differences between females and males in 2013 in the Human Development Index and Gross National Income per capita in...
In an economy with no government sector: C = consumption I = investment X = exports M = imports Y = national income.
The diagram shows a closed economy in which the full employment level of income is YF.
In the Quantity Theory of Money equation, MV = PT, V is defined as the income velocity of circulation.
What moves from households to firms within the circular flow of income?
What is meant by liquidity preference?
What is an appropriate government policy for closing a deflationary gap?
Which policy is most likely to contribute to people ending up in a poverty trap?
During year 1, a government announces a temporary one-year reduction in the level of indirect taxation balanced by an equivalent temporary one-year...
The United States (US) Economy According to the Bureau of Economic Analysis, in the US in the first quarter of 2015, the real Gross Domestic Produc...