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.
Ethiopia to develop through infrastructure investment Extract 1: Ethiopia economic overview With 99.4 million people, Ethiopia has the second larg...
Explain, with the help of a diagram, the process through which the equilibrium price and equilibrium quantity of a good changes when there is an im...
Explain how knowledge of the price elasticity of demand for a good can help businesses to assess the impact of price changes upon their total revenue.
Explain how the terms of trade of an economy will be affected by changes in that economy's exchange rate.
BRIC is a term referring to the economies of Brazil, Russia, India and China. It originated from Jim O'Neill of Goldman Sachs who predicted that th...
It has been reported that the world demand for chocolate is increasing at a time when the supply of cocoa beans, the raw ingredient required to pro...
In March 2017, the Indian government announced a new five year programme of investment in the country's nationalised railway system.
Explain the likely causes of a deficit on the current account of the balance of payments for an economy that relies heavily on agricultural products.
Which situation would indicate the presence of an externality? A Producers' actions cause a shortage of a particular good. B Private motorists cont...
Building a hospital has a social cost of $200 million. The social benefit is $240 million; external benefit is $150 million. What can be concluded ...
A firm produces good X and good Y when the marginal product of both labour and capital is diminishing. The table shows the marginal products at a g...
What is equal at all points along an indifference curve for an individual consumer? A marginal expenditure B marginal utility C total expenditure D...
The diagram shows the total utility of a good for an individual consumer. Marginal utility gives a guide to the price a consumer is willing to pay....
The diagrams show different budget lines and consumer equilibrium choices. The consumer is in equilibrium at Q1XQ1Y. Which diagram shows the effect...
What is a characteristic of a highly contestable industry? A a reduction in abnormal profits B a substantial volume of advertising by existing firm...
The diagram shows cost and revenue curves for a firm. [Figure 8.1] The firm may seek to either maximise profit or maximise revenue. What is the cor...
The list provides characteristics of the market in which firm X operates. • Firms in the market spend a lot of money on advertising. • Firms in the...
Which statement about the 'kinked demand curve' model of oligopoly is incorrect? A The kink in the demand curve of each firm is based on expectatio...
As firm X grows in size, it specialises in a narrower range of products. Which economies of scale will the firm be less able to benefit from? A fin...
What would economists agree should be the aim of any healthcare system? A to meet all the healthcare demands of the population B to provide every p...
A producer of a good causes pollution. When will a specific tax on the production of the good be most effective in reducing output? A when there is...
Governments often aim to reduce income inequalities. The diagram shows the effects of using taxation and benefits to try to achieve this aim. [Figu...
Which government policy would not be classified as regulation? A bans on heroin and cocaine consumption B compulsory wearing of seatbelts in cars a...
The diagram shows the initial position of a labour market. [Figure 16.1] The government increases the number of statutory paid holidays to which wo...
The diagram represents the demand and supply of labour in a competitive industry. [Figure 17.1] What is true about unit of labour L when they are p...
Which combination of characteristics is usually associated with a developing country? A high death rate and low levels of productivity B high gross...
What is the best description of sustainable economic development? A a long term increase in the actual output of an economy B a long term increase ...
The table gives the percentage (%) rates of youth unemployment and total unemployment in France and the UK in 2001 and 2005. France UK youth unempl...
Which change in the labour market could cause inflation if the government adopted an expansionary fiscal policy? A a decrease in the economy's nati...
Which assumption is not made in the Keynesian model of national income and employment determination? A An increase in aggregate demand can increase...
An economist once said "if you pay people not to work and tax them when they do, don't be surprised if you get unemployment”. What is this an examp...
The table provides data for the external debt as a percentage of Gross National Income (GNI) for four countries in 2010 and 2015. external debt as ...
The following statistics are for Pakistan and refer to 2016. % GDP growth 5.7 population growth 2.0 rate of inflation 3.8 What was the approximate ...
In a 4-sector economy, consisting of households, firms, government and foreign trade, the level of national income is in equilibrium where C + I + ...
According to Keynesian theory, what will cause the rate of interest to rise? A a decrease in liquidity preference B a decrease in the level of nati...
A government finances its public sector borrowing by selling securities to the non-bank private sector. What will follow? A The budget deficit will...
When would a central bank be able to exert the closest control over the money supply of the country? A If it intervened in the foreign exchange mar...
A fall in domestic investment leads to an increase in unemployment. Which other problem might also be observed at the same time? A an increase in i...
Some multinational oil companies extracting oil in developing countries are now required to repair the damage they do to the environment. Which bes...
In an economy, no one can be made better off without making someone else worse off. What does not necessarily follow from this?
A government decided to approve a road building scheme because it was socially beneficial. In making its decision it calculated private costs at $8...
What is it called when a consumer's marginal utility is greater than the price paid for the good?
A consumer has $3 to spend each day on chocolate bars or toffee bars, which all cost $1 each. The table below shows the units of additional satisfa...
The curve JK in the diagram is a consumer's initial budget line. [Figure 6.1] Which combination could cause the budget line to shift to GH?
The diagram shows a consumer's indifference curves (IC) for goods F and G together with the consumer's budget lines. [Figure 7.1] What could explai...
A firm has the choice between five levels of output. The table shows the total cost and total revenue of producing at each output level. The firm c...
In which type of market structure are commercial banks usually found?
What is a condition for operating a successful cartel?
Which assumption is essential for a market to be contestable?
What is generally associated with the principal-agent problem?