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.
The diagrams relate to the markets for four different products. In which market would a 10% decrease in demand and simultaneously a 10% increase in...
The diagram shows three possible tax schemes. What can be concluded about these tax schemes? [Figure 15]
The diagram shows an initial market equilibrium for an agricultural product of $6 and 800 units. How much will the government have to spend to incr...
The table identifies items of government annual spending. What is the total government expenditure on transfer payments?
A subsidy is given to the producers of a good with perfectly elastic demand. What will be the outcome?
'Primary income' and 'secondary income' are components of the current account of the balance of payments. What do these represent?
The diagram shows the original aggregate demand curve, AD1, and original aggregate supply curve, AS1. The original equilibrium is at X. What would ...
What is not an example of protectionism?
The table shows the annual percentage increases in a country’s consumer prices index (CPI). Which statement is correct?
The table indicates the factor inputs required to produce wheat and cars in countries X and Y. What makes it possible for both countries to benefit...
In February 2016 the Organisation for Economic Cooperation and Development (OECD) urged major economies such as the US and Japan to increase govern...
A foreign government pays a UK university to educate its students. How would this be recorded on the balance of payments current account of the UK?
The tables show changes over a period in the average prices of a country’s exports and imports. They are expressed as index numbers, with year 0 as...
Which aim would be consistent with a government’s decision to buy its own currency in foreign exchange markets?
Which policy would assist in reducing a deficit within the balance of payments?
An economy’s current account on the balance of payments is in surplus. The exchange rate is revalued by the government. Assume the Marshall-Lerner ...
India has a vast informal economy, where products and labour are exchanged for cash without official records, so that the authorities cannot easily...
Explain, with the help of a diagram, how a free market would react if a minimum price which had been set above the equilibrium is removed.
Explain, with the help of a diagram, the effect and incidence of a subsidy in a market for essential transport.
Explain, with the help of a diagram, the difference between what causes (i) a movement along an aggregate supply curve and (ii) a shift in an aggre...
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...