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 is an example of the rationing function of the price mechanism?
In 2016 car drivers bought more fuel because the price of oil from which it was made had fallen. Which diagram represents this change in the market...
The diagram shows the demand and supply curves for bread in a developed economy. Bread is a substitute for pasta and rice. What would cause the dem...
The table shows the quantity demanded of three goods when the price of good X changes. Which relationships between X, Y and Z can be deduced from t...
The diagram shows three supply curves. What can be concluded about the price elasticity of supply of the curves?
The diagram shows the market for smartphones in India. Rising incomes in India have seen a demand for this normal good shift from D₁ to D2. Which a...
A nationalised industry is privatised. Assuming there is no change in the output of the industry in the short run, what are the direct effects of t...
What is a distinguishing feature of a progressive income tax?
Why might a government nationalise a private firm?
The diagram shows a firm's supply of and demand for apples. If a minimum price is increased from P₁ to P2 what will happen to the amount of apples ...
In an attempt to reduce crime, a government introduces a subsidy on the production of burglar alarms, but sales rise very little. Which possible ch...
Compared with Pakistan, Germany has a higher output of pharmaceuticals per unit of resources used. What could explain this?
Why is it that a country's balance of payments must always balance?
Which argument for protection would be most relevant if the government of country X decided to exercise voluntary export restraint in its trade wit...
The average price of a country’s exports increased by 5% and the average price of its imports increased by 10%. What can definitely be concluded fr...
There is an increase in indirect taxes. What will be the impact on demand-pull inflation and on cost-push inflation?
The table shows the number of biscuits and cakes that can be produced by four workers in an hour. Who has the greatest comparative advantage in pro...
Which condition is necessary for a country’s balance of payments on its current account to improve if it reduced its exchange rate?
The diagram shows the effect of the United States (US) imposing a tariff on the import of steel in 2018. Which statement about the impact of the ta...
In 2012, the Indian Government stated that it aimed to reduce its budget deficit to 5.1% of GDP. Which policy is most likely to help this aim in th...
What would make a policy of raising interest rates less likely to be effective in reducing inflation?
Country X is an open economy with a floating exchange rate. It changes to a fixed exchange rate. Which combination of policy changes would be most ...
In a planned economy, what will determine the allocation of scarce resources?
A key concept in classifying goods is whether a good is rival or non-rival. Which good is rival in consumption?
What is a normative statement?
The diagram shows an economy's production possibility curve (PPC). The economy has moved from X to Y. What can be deduced from the diagram?
An indirect tax is imposed on a product, causing total expenditure by consumers to increase. Which row identifies this situation?
The price elasticity of the supply of yoghurt is +1.5. If the demand for yoghurt rises and price rises by 20%, how much more will be supplied to th...
The diagram shows the market demand for and supply of a good. Which statement is not valid?
The diagram shows two linear supply curves labelled S₁ and S2, where S2 is a 45° line. Which statement about the price elasticity of supply is corr...
A country has health care provided by the free market. This is replaced by the government provision of Sg free health care. What is the change in c...
What is an example of a product in joint demand with a smartphone?
A product has a high price elasticity of supply. What might explain this?
What is likely to affect the position of the demand curve for tickets to pop concerts but not the position of the supply curve?
The table shows Lee's and Yim's price elasticity of demand for restaurant meals and cinema tickets. There is a rise in the price of both products. ...
A government fixes a maximum price for a product in order to increase its consumption. What would be the likely outcome of such a policy?
What is a transfer payment?
What best illustrates the process of privatisation?
An increase in what will shift the aggregate demand curve in an economy to the right?
Which effect of inflation is described as redistributive?
In which situation will a country's terms of trade improve?
Country X joins a customs union with country Y and will remove the tariff on its imports of good M from country Y. Under which conditions will trad...
What is likely to happen if there is a fall in the international value of a country's currency?
From the same quantity of factors of production, country X and country Y each produce the following units of output. Which statement is correct?
Following a 10% depreciation in the $ value of the £ sterling, a UK exporter leaves the $ price of the goods it sells in the US market unchanged. O...
The diagram shows the effect of introducing a tariff on a product. What determines the producer surplus that the tariff generates for domestic prod...
Which government policy is most likely to cause expenditure switching that will benefit a country's current account?
Which type of economic policy is likely to be considered the most effective by a government that has greater income equality as its primary aim?
PPC is the production possibility curve in country T. Which changes take place in country T's opportunity costs of producing X as it increases prod...
What is considered the essential requirement for all entrepreneurs?