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.
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 ...
A government decided to increase its expenditure on a major infrastructure project by building new roads. What would decrease the multiplier effect...
A country is in recession with unused resources. The government reduces interest rates. What do Keynesian economists believe the short-run outcome ...
The diagram shows the investment schedule of an economy. [Figure: Diagram showing rate of interest (%) on y-axis, investment on x-axis, with two do...
When will an inflationary gap exist in an economy? A when aggregate demand is greater than full employment income B when leakages exceed injections...
What is the basic assumption underlying the accelerator theory? A Investment depends on the level of business confidence. B Investment depends on t...
The table shows data on the unemployment and inflation rates for four countries in 2010 and 2014. country | unemployment rate (% of workforce) 2010...
What is most likely to be an appropriate government action to reduce both a balance of payments current account surplus and the rate of inflation? ...
In which situation are there definitely positive externalities?
A cost-benefit analysis is carried out on the construction of a hydroelectric power station. Which combination of circumstances would be most likel...
What does not pose a threat to the achievement of allocative efficiency?
The diagram shows budget lines and an indifference curve. The consumer's initial position is T. The price of good X then falls. Which combination o...
The diagram shows various combinations of apples and rice which are potentially available to a consumer. If standard indifference curves were added...
The schedule shows the short-run marginal cost of producing good X. units of X 1 2 3 4 5 marginal cost ($) 45 40 30 20 20 Given that the total fixe...
What must be found in two markets for price discrimination to be profitable?
A firm maximises its profits by maximising its total revenue. What does this imply?
Technological change reduces the minimum efficient scale of production in an industry. What is likely to result?
The diagram shows the costs and revenue for a firm in imperfect competition. Which level of output would produce only a normal profit? [Figure 10.1]
What would be a reason why small firms do not survive?
What is the implication of a dominant oligopoly following a limit pricing policy?
Transport economists estimate the price elasticity of demand for private car use is very low. What would be the most effective way of reducing road...