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.
Which policy combination will reduce income inequalities in a country? A impose a fixed amount tax on all people and reduce unemployment benefits B...
The diagram shows an economy's Lorenz curve (VW). [Figure 15.1] How is the Gini coefficient for the economy calculated? A Y / (Y + Z) B Z / Y C Z D...
What will cause the supply curve of labour in a particular industry to shift to the left? A a fall in demand for the industry's product B a greater...
The diagram shows the costs and revenue curves in the labour market for a firm in imperfect competition. [Figure 17.1] Initially the firm is at an ...
A country has a population of 100 million. 60 million are of working age and 50 million are in the labour force. The country's unemployment rate is...
The table shows the nominal GDP growth and inflation rate in four countries, W, X, Y and Z. | | nominal GDP growth rate (%) | annual inflation rat...
Which trade policy of a developed country is least likely to allow a developing country to experience increased growth? A a decrease in administrat...
What is not included in National Income accounts? A a gift by a parent to her daughter as a deposit on an apartment B earnings of a part-time worke...
A developing country relies heavily on the production of a primary product for its national income. Which change will make it more likely that the ...
What might cause a country to experience both a rise in the number of people unemployed and an increase in job vacancies? A a decrease in housing a...
In a two sector economy autonomous consumption expenditure increases by $100 billion, autonomous investment expenditure by $200 billion and the mar...
The central bank in an open economy cuts the interest rate to avoid deflation. Under which conditions is this expansionary monetary policy most lik...
The diagram shows that the elasticity of demand for money becomes infinite at a certain rate of interest. [Figure 26.1] Which statement explains th...
What would be most likely to result in an increase in unemployment? A a decrease in the level of bank loans B a decrease in the level of taxation C...
Which macroeconomic indicator is least likely to identify a developing country? A real GDP per capita B the Gini coefficient C the Human Developmen...
What would not help to achieve the macroeconomic objective of economic growth? A decreasing corporation tax B increasing income tax C reducing inte...
What is a reflationary fiscal measure? A increasing government spending B increasing taxes C increasing the money supply D reducing interest rates
The UK government favoured the production of cheap, sustainable electricity and subsidised the large companies that operate wind farms. The wind fa...
'A society that cares about efficiency needs to provide government funds for social sciences that work on the assumption that efficiency matters'. ...
Explain what is meant by consumer equilibrium and consider whether the assumptions underlying consumer equilibrium are realistic.
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]