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.
Discuss whether privatisation and an increase in competition would hinder or help the achievement of economic efficiency.
Use indifference curves to distinguish between the income and substitution effects of a price change. Discuss whether the distinction might be impo...
Consider whether a firm's marginal cost and average variable cost are significant when a firm wishes to maximise profits.
Explain the relationship in a perfect market between a firm's demand for labour and the wage rate offered.
'The measurement of living standards is problematic. It is never certain that people in one country are better off than those in another. The class...
What differences are there, if any, between fiscal policies, monetary policies and supply side policies?
Economic recovery pains Since the world financial crisis of 2008 the United Kingdom (UK) economy has recovered more quickly than some other advance...
In many countries there is a concern about the rate of unemployment.
Analyse how indifference curve theory explains why a consumer will normally buy more of a good at a lower price than at a higher price.
For some products there has been an increasing dominance of large firms in the last five years. For example, in the telecommunications industry mos...
The merit of the economic theory of wage determination is that it clearly shows what the best level of wage rates should be and thus is evidence th...
Whether a country can be classified as developed depends on the value of its GDP and the higher the GDP the better it is for the country. Consider ...
Section A Answer this question. Big is bad At its best, capitalism should be all about competition and consumer choice. This leads to innovation,...
Section B Answer two questions.
Describe how a firm is said to operate in order to maximise profits. Consider whether it will cease to operate if total revenue fails to cover tota...
The French film industry is subsidised by the government. Some actors receive very high fees. In 2015 it was proposed that, as part of the fee is p...
Analyse what might cause an increase in unemployment in an economy.
The table shows economic growth rates of GDP for selected countries for 2013. Switzerland 1.9% Sweden 1.5% Uganda 6.0% Zimbabwe 4.5% Source: world...
In recent years, many countries have faced economic difficulties. At such a time, discovering the best means of allocating scarce resources becomes...
Which statement by a company is normative?
The diagram shows an economy's production possibility curve for goods X and Y. [Diagram] What is the opportunity cost of moving from point R to poi...
From 1995 to 2000 each of the countries listed below moved towards a market economy through privatisation programmes. [Table: private sector share ...
A businesswoman sets up a charity to provide toys for young children of low income families. Which term most accurately describes these toys?
What will happen to an industry's supply curve if new firms enter the industry?
D1D1 shows an individual's initial demand curve for public transport. [Diagram] What would cause the demand curve to shift to D2D1?
Two goods X and Y have a positive cross-elasticity of demand and upward-sloping supply curves. What will be the effect of a reduction in the price ...
Which statement best describes the meaning of price elasticity of supply?
The diagram shows the market for cocoa, which is a normal good. Initially the market is in equilibrium with price Pe and quantity Qe bought and sol...
Goods X and Y are complements and have upward-sloping supply curves. What will be the effect on the equilibrium price and quantity of good X of an ...
The diagram shows a competitive market in equilibrium with price P and quantity Q sold. [Diagram] Which area represents the producer surplus?
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...