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 relation is there, if any, between the law of diminishing returns and internal and external economies of scale?
Explain why economists use a Lorenz curve and a Gini co-efficient and comment on likely government policy implications if a country's Gini co-effic...
'The Human Development Index (HDI) is a more useful indicator of changes in living standards than changes in Gross Domestic Product (GDP) but it st...
Discuss the effects of an expansionary monetary policy on the demand for money.
The Economic Outlook for Japan In 2017, the forecast of the Bank of Japan (the country's central bank) was that Japan's economy was likely to enjoy...
'Free markets make the most efficient use of resources and are the foundation of a successful economy.' To what extent do you agree with this?
Explain what is meant by a normal good and comment on the link between total utility, marginal utility and a consumer's demand curve for that good.
Explain how a firm maximises its profit in perfect competition.
Explain the relevance of economic rent and transfer earnings when comparing the wages of skilled workers and unskilled workers.
Evaluate how the relative size of injections into and leakages from the circular flow of income can affect the ability of a government to achieve i...
Discuss whether countries at different stages of development should use different methods of measuring living standards.
Production, living standards and market failure Today, the average person lives better than they did fifty years ago. Two reasons are given for thi...
Explain the meaning of and whether there is a link (i) between Pareto optimality and equality; (ii) between free markets and equity.
Critically discuss the explanation in economic theory of how a rational consumer exercises choice and how it links to a demand curve.
Contrast the features of a perfect competitive market with those of an oligopoly and compare the aims of the firms in each of these market structures.
Analyse and discuss whether the economic theory of wages can explain why there are inequalities in wage rates in a country.
Explain the speculative motive for the demand for money and consider its significance in relation to monetary policy.
'There have been many attempts to measure changes in living standards both within and between countries. Although some have been more useful than o...
The diagram shows a production possibility curve. What can be deduced from the shape of this curve?
Below are two statements. 1 A rise in the price of rice is the best way to give farmers in South-East Asia higher living standards. 2 A rise in the...
What is a characteristic of money but not a function of money?
In the UK, attempts to encourage people to change from road to rail travel by the introduction of a system of road pricing were forecast to have li...
The diagram shows the market supply and demand for a good. Which area represents producer surplus?
Vanilla is an important ingredient in the production of ice cream. Between 2011 and 2018 the price of vanilla increased from about US100 per kg to ...
A government reduces income tax but at the same time raises the rate of sales tax (VAT). What are the likely effects on the demand and supply of a ...
An increase in the popularity of air conditioning units has resulted in their price increasing by 20%. In response to this the quantity supplied in...
Which change does not have an immediate effect on the position of the demand curve for a product?
A firm estimates that the price elasticity of supply of its product is 0.4. Should the firm be concerned by this figure?
A government decides to privatise a state-owned company. What should the government do to try to ensure that this will result in an improvement in ...
The graph shows an individual's income before and after the deduction of income tax. What is the marginal percentage rate of tax between $0 and $10...
In year 1, in the market for a good represented in the diagram, the initial demand and supply conditions are shown by D₁ and S₁, and the government...
What is necessary for an action to be classed as a transfer payment?
The market for good X is in equilibrium. The government introduces a subsidy to the producers of good X. Under which conditions will the total expe...
Under which combination of circumstances will a policy of increasing the money supply be most effective at moving an economy out of recession?
In which economic context is the term 'protectionism' usually applied?
The table shows an approximate summary of the current account of the balance of payments for Thailand. What is the current account balance, in mill...
The diagram shows the production possibility curves for two economies using all resources. Country X can produce 10 million cars or 20 million bicy...
A country has a balance of payments deficit. It devalues its currency. Which combination leads to a reduction in its balance of payments deficit in...
The diagram shows aggregate demand curves AD₁ and AD2 and an aggregate supply curve AS1. What could cause the shift in the aggregate demand curve f...
The government of an open economy with an overvalued currency decides to abandon its fixed exchange rate in favour of a floating exchange rate. Whi...
Devaluation always has the effect of
A government uses monetary policy and fiscal policy to solve a problem of deflation. Which policy combination is likely to be the most successful?
A government reduces its expenditure on workplace training, increases the level of indirect taxes, and reduces the rate of interest it pays on gove...
What represents the total of aggregate demand in a closed economy?
What is a function of money?
What is classified as a public good by economists?
Which statement about the factors of production is correct?
Which supply curve shows that the price elasticity of supply of the good is always equal to 1?
What could cause a shift in the supply curve of good X and a movement along its supply curve?
The market for mobile phones is initially in equilibrium at X. The government then imposes a sales tax. What is the government's total tax revenue ...