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 economic theory of wage determination in perfectly competitive labour markets.
Recession in some economies has caused high unemployment. At the same time high levels of national debt and substantial budget deficits have been e...
Examine the effects on the demand for money in an economy, when the money supply is increasing and more individuals are using credit and debit card...
Distinguish between economic growth and economic development and consider whether they are linked.
What's to be done about rising inequality? There is great inequality of income and wealth in the United States (US), that many believe is not equi...
Discuss whether economic efficiency is always achievable in a market economy.
Analyse the factors which determine the price of a firm's product and its output in monopolistic competition.
Consider whether wages are only determined by the market forces of supply and demand.
Robots are increasingly used in various areas of production.
A country with an open economy has an increasing demand for its exports and a fall in the supply of labour.
Explain how developing countries differ from developed countries.
Countries are seeking innovation-led growth that is more inclusive and more sustainable than in the past. Modern capitalism is facing challenges of...
A city bus company proposes to reduce passenger fares. Explain whether consumers always buy more of a good at a lower price than a higher price. Co...
Two major hotel groups agreed to charge a lower rate for rooms booked through a booking agent than if guests asked for a room upon arrival at the h...
Discuss how economic theory analyses wage rate determination. Consider if the theory can be used to explain the fact that the highest pay is often ...
Explain what is meant by the term 'natural rate of unemployment'. Consider which types of unemployment would cause this rate to rise.
'Central banks can control interest rates but they cannot control the money supply. Commercial banks can control the money supply but they cannot c...
The Kuznets curve was based upon empirical evidence and it supports the hypothesis that as an economy develops, market forces first increase income...
What is correct about scarcity?
Which labels might be used on a production possibility curve diagram?
A good’s defining quality is that its consumption by one person prevents its consumption by someone else. How is this good classified?
Which is a normative economic statement?
The price of a ticket for an international athletics tournament was $50. All tickets were sold. Which area on the diagram represents consumer surpl...
Market demand curves normally slope downwards. They may also shift from D₁ to either D2 or D3. What would cause a movement along D₁ for good X and ...
What is not a function of the price mechanism?
A government introduces a maximum price above the market price. What will be the effect on consumer and producer surplus?
The diagram shows the market for air travel in Asia. The initial market equilibrium is at X. What will be the new equilibrium if the price of aviat...
A government increased a specific tax on shoes. The resulting increase in the price of shoes was paid mainly by the consumer and not by the produce...
The diagram shows supply and demand for a good. The original equilibrium is X. What will be the new equilibrium if subsidies are given to firms for...
The diagram shows the market for a normal good. What is likely to cause both demand and supply curves to shift to the right? [Figure 12]
The diagrams relate to the markets for four different products. In which market would a 10% decrease in demand and simultaneously a 10% increase in...
The diagram shows three possible tax schemes. What can be concluded about these tax schemes? [Figure 15]
The diagram shows an initial market equilibrium for an agricultural product of $6 and 800 units. How much will the government have to spend to incr...
The table identifies items of government annual spending. What is the total government expenditure on transfer payments?
A subsidy is given to the producers of a good with perfectly elastic demand. What will be the outcome?
'Primary income' and 'secondary income' are components of the current account of the balance of payments. What do these represent?
The diagram shows the original aggregate demand curve, AD1, and original aggregate supply curve, AS1. The original equilibrium is at X. What would ...
What is not an example of protectionism?
The table shows the annual percentage increases in a country’s consumer prices index (CPI). Which statement is correct?
The table indicates the factor inputs required to produce wheat and cars in countries X and Y. What makes it possible for both countries to benefit...
In February 2016 the Organisation for Economic Cooperation and Development (OECD) urged major economies such as the US and Japan to increase govern...
A foreign government pays a UK university to educate its students. How would this be recorded on the balance of payments current account of the UK?
The tables show changes over a period in the average prices of a country’s exports and imports. They are expressed as index numbers, with year 0 as...
Which aim would be consistent with a government’s decision to buy its own currency in foreign exchange markets?
Which policy would assist in reducing a deficit within the balance of payments?
An economy’s current account on the balance of payments is in surplus. The exchange rate is revalued by the government. Assume the Marshall-Lerner ...
India has a vast informal economy, where products and labour are exchanged for cash without official records, so that the authorities cannot easily...
Explain, with the help of a diagram, how a free market would react if a minimum price which had been set above the equilibrium is removed.
Explain, with the help of a diagram, the effect and incidence of a subsidy in a market for essential transport.
Explain, with the help of a diagram, the difference between what causes (i) a movement along an aggregate supply curve and (ii) a shift in an aggre...