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.
What would help to explain why there was a reduction in wage inequality in a country during the post-2008 economic recession?
How is marginal revenue product calculated?
A firm currently employs 30 workers at a daily wage of $50 each. The marginal cost of employing one extra worker is $112 per day. By how much will ...
In the diagram, HN is the initial supply of labour curve faced by a firm, and RM is its initial marginal cost of labour curve. What will be the fir...
Output per worker in an industry increases more slowly than the industry's total output. What could explain this?
On a diagram showing a production possibility curve, what definitely represents long-run economic growth?
When is economic growth most likely to promote economic development?
Which items in the table are classified as foreign aid? foreign direct official portfolio investment development investment assistance flows A no n...
Country X's living standards were compared with country Y's living standards using real GNP per head converted into US dollars. Country X was ranke...
In 2007 Turkey had a population of 73 m. Its labour force was 36m, of which 12m were trained for the primary sector and 24m were trained for the se...
An economy's manufacturing share of real GDP fell from 30% in 1970 to 12% in 2016. What type of unemployment would result from this?
In an open economy, when autonomous investment increases by 100, equilibrium national income increases by 300. Which conclusion can be drawn?
The diagram outlines the monetary transmission mechanism following an expansionary central bank intervention (quantitative easing). Key actions hav...
In Keynesian monetary theory, when will an increase in the supply of money not cause a fall in interest rates?
The diagram shows an economy in equilibrium at point X. What would be most likely to cause the economy to move from point X to point Y? [Figure 28.1]
The table identifies pairs of possible government aims. In which case is achievement of aim 1 likely to be consistent with the achievement of aim 2...
What is most likely to result from the discovery of oil reserves in a developing economy?
Which condition must be met for economic efficiency to be achieved? A Marginal social benefits are at a maximum in the production of all goods. B M...
What is a characteristic of a merit good? A free at the point of use B has zero marginal costs C non-competitive in use D possesses positive extern...
Which statement is correct? A External benefit minus private benefit equals social benefit. B Private benefit minus external benefit equals social ...
When does a consumer achieve maximum total utility (TU), according to marginal utility (MU) theory for two goods, X and Y, with different prices (P...
The diagram shows a change in a consumer's budget line from RR to SS. [Figure 5.1] What might explain why this occurred? A a decrease in income and...
When shirts are produced, fixed costs are $100 and the variable cost is $5 per shirt. If the price is $10, which output would result in normal prof...
The table shows four market structures. | market structure | barriers to entry | differentiated products | |---|---|---| | A monopolistic competit...
A firm abandons its policy of horizontal expansion and switches to a policy of backward vertical growth. What does this suggest is most likely abou...
What identifies the output level required to meet the stated aim of the firm? | aim of firm | produce at output where | |---|---| | A maximum effi...
What makes it likely that firms will collude in setting prices for a particular product? A a highly contestable market structure B a small number o...
The diagram shows a firm's marginal and average cost curves. The firm enters a collusive agreement with other firms in the industry. It is agreed t...
The diagram shows a notice on a motorway near Cambridge. [Figure 12.1] This road was recently cleared of 17 bags of litter. Clearing litter puts lo...
A reason for government intervention in the workings of the economy is to attempt to correct for market failure. Sometimes, though, government fail...
Which policy combination will reduce income inequalities in a country? A impose a fixed amount tax on all people and reduce unemployment benefits B...
The diagram shows an economy's Lorenz curve (VW). [Figure 15.1] How is the Gini coefficient for the economy calculated? A Y / (Y + Z) B Z / Y C Z D...
What will cause the supply curve of labour in a particular industry to shift to the left? A a fall in demand for the industry's product B a greater...
The diagram shows the costs and revenue curves in the labour market for a firm in imperfect competition. [Figure 17.1] Initially the firm is at an ...
A country has a population of 100 million. 60 million are of working age and 50 million are in the labour force. The country's unemployment rate is...
The table shows the nominal GDP growth and inflation rate in four countries, W, X, Y and Z. | | nominal GDP growth rate (%) | annual inflation rat...
Which trade policy of a developed country is least likely to allow a developing country to experience increased growth? A a decrease in administrat...
What is not included in National Income accounts? A a gift by a parent to her daughter as a deposit on an apartment B earnings of a part-time worke...
A developing country relies heavily on the production of a primary product for its national income. Which change will make it more likely that the ...
What might cause a country to experience both a rise in the number of people unemployed and an increase in job vacancies? A a decrease in housing a...
In a two sector economy autonomous consumption expenditure increases by $100 billion, autonomous investment expenditure by $200 billion and the mar...
The central bank in an open economy cuts the interest rate to avoid deflation. Under which conditions is this expansionary monetary policy most lik...
The diagram shows that the elasticity of demand for money becomes infinite at a certain rate of interest. [Figure 26.1] Which statement explains th...
What would be most likely to result in an increase in unemployment? A a decrease in the level of bank loans B a decrease in the level of taxation C...
Which macroeconomic indicator is least likely to identify a developing country? A real GDP per capita B the Gini coefficient C the Human Developmen...
What would not help to achieve the macroeconomic objective of economic growth? A decreasing corporation tax B increasing income tax C reducing inte...
What is a reflationary fiscal measure? A increasing government spending B increasing taxes C increasing the money supply D reducing interest rates
The UK government favoured the production of cheap, sustainable electricity and subsidised the large companies that operate wind farms. The wind fa...
'A society that cares about efficiency needs to provide government funds for social sciences that work on the assumption that efficiency matters'. ...
Explain what is meant by consumer equilibrium and consider whether the assumptions underlying consumer equilibrium are realistic.