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.
A new section of a road is provided toll-free by the government. What best describes this good?
Eastern European nations have changed from planned to market economies. Which policy was least likely to have been adopted?
Rice and pasta are both basic foods in a country. How would a health scare concerning rice affect the market for pasta?
Some goods are over-consumed in a market economy. What is likely to be the cause of this?
A family is willing to pay a maximum of $600, $500 and $400 for air tickets for the mother, father and daughter to attend a wedding in another city...
After a 10% decrease in a consumer's income, the consumer's demand for a good rises from 100 to 105. What is the value of the consumer's income ela...
In 2010, poor harvests reduced fruit crops and furniture producers gave big discounts on furniture products. How might these changes have affected ...
In the diagram, D and S represent the demand for and supply of smartphones. Many components used in the production of smartphones are imported. The...
The diagrams show the demand for and the supply of houses. In the short run, the stock of houses for sale, S₁, is fixed. A government decides to al...
The equation for the quantity demanded, QD, for a product is QD = 400-20P where P = price in $. The quantity supplied, QS, is given by QS = 100 + 4...
What is the most likely cause of the continuous increase in prices of famous paintings by now dead artists?
What is most likely to be regressive?
The government imposes a specific indirect tax of $1 on each unit of a good sold. How does the imposition of the tax shift the demand or supply cur...
Which term relates to a fall in the domestic real value of a currency?
What must be the result for a country of a rise in its export prices relative to its import prices?
Country X can produce a product at a lower opportunity cost than country Y. Which term best describes this statement?
For a given year, economy X publishes the following. Gross Domestic Product (GDP) $bn 100 factor income earned by residents of economy X working in...
Which combination is possible for an economy experiencing zero inflation?
The graph shows the rate of inflation in Japan from April 2020 to February 2021. Over which period did disinflation occur in Japan?
The diagram shows three production possibility curves (PPC) for a country, labelled 3, 2 and 1. The original PPC for the country is 2. This country...
A government increases the rate of income tax. What is the effect, in the short run, on the aggregate demand curve or the aggregate supply curve?
A country's current account deficit is larger this year than last. What is the most likely reason for this increase?
Which tax may a government use to reduce inequality?
A government wants to reduce inflation. It has decided to cut government spending by $1bn. The diagram shows different starting positions for the c...
A government reduces the rate of tax firms are charged on their land and buildings. How is this likely to affect the economy's price level and real...
The production possibility curve for a country is shown. [Figure 1.1] What can be determined from the diagram?
In a clothing business, after specialisation, real output per worker increased in the first six months but then output per worker began to fall. Wh...
A wine producer and bottler wanted to expand its production significantly. To finance the expansion it offered investors discounts on restaurant me...
Which statement is positive?
The diagram shows the change in a country's production possibility curve from PQ to PR. [Figure 5.1] What increases as a result of the change from ...
The graph shows the demand and supply curves for an industry. [Figure 6.1] What would cause a shift in the supply curve from S₁ to S2?
A firm produces a good using a very labour-intensive process. There is an increase in the price of the good. Under which conditions will the supply...
What is most likely to cause the demand curve of an inferior good to shift to the right?
The diagram shows four supply curves. [Figure 9.1] Which curve has a price elasticity of supply of 1 for all levels of quantity supplied?
The diagram shows a shift of the supply curve in a market from S₁ to S2. [Figure 10.1] How will the consumer surplus and producer surplus change?
In the diagram, S₁ and S2 are the supply curves for an agricultural product in years 1 and 2 respectively. D is the demand curve in years 1 and 2. ...
Inequality in an economy can be categorised as either income inequality or wealth inequality. What is most likely to cause greater wealth inequalit...
A product with infinite elasticity of supply has sales of 1000 units a week at a price of $1 per unit. Price elasticity of demand is 1.5 over the r...
The table shows the values of Consumer Prices Index (CPI) and a worker's salary in 2022 and 2023. [Table 15.1] What is the real value of the worker...
An economy experiences rising unemployment due to incomes falling as a result of a virus pandemic. How would this unemployment be classified?
What is likely to move an economy's aggregate demand curve to the right?
Which items have to be added to and subtracted from Gross Domestic Product at market prices to calculate the value of Gross Domestic Product at bas...
What is an example of a macroeconomic policy?
Which supply-side policy is likely to lower real output before raising it?
An economy is in equilibrium at point E on the diagram. The government reduces its expenditure on defence. [Figure 22.1] Which point on the diagram...
The number of people employed in a country and the level of unemployment both decrease. What could explain this?
Which circumstances would most help a firm to gain from a depreciation of the exchange rate?
A country has a floating exchange rate. Its current account on the balance of payments moves from a surplus to a deficit. Which rate is likely to i...
Which policy is most likely to reduce a balance of payments deficit without causing inflation?
The table shows the average price of exports and imports. [Table 27.1] Which combination of changes in export prices and import prices could result...