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.
An economist once said "if you pay people not to work and tax them when they do, don't be surprised if you get unemployment”. What is this an examp...
The table provides data for the external debt as a percentage of Gross National Income (GNI) for four countries in 2010 and 2015. external debt as ...
The following statistics are for Pakistan and refer to 2016. % GDP growth 5.7 population growth 2.0 rate of inflation 3.8 What was the approximate ...
In a 4-sector economy, consisting of households, firms, government and foreign trade, the level of national income is in equilibrium where C + I + ...
According to Keynesian theory, what will cause the rate of interest to rise? A a decrease in liquidity preference B a decrease in the level of nati...
A government finances its public sector borrowing by selling securities to the non-bank private sector. What will follow? A The budget deficit will...
When would a central bank be able to exert the closest control over the money supply of the country? A If it intervened in the foreign exchange mar...
A fall in domestic investment leads to an increase in unemployment. Which other problem might also be observed at the same time? A an increase in i...
Some multinational oil companies extracting oil in developing countries are now required to repair the damage they do to the environment. Which bes...
In an economy, no one can be made better off without making someone else worse off. What does not necessarily follow from this?
A government decided to approve a road building scheme because it was socially beneficial. In making its decision it calculated private costs at $8...
What is it called when a consumer's marginal utility is greater than the price paid for the good?
A consumer has $3 to spend each day on chocolate bars or toffee bars, which all cost $1 each. The table below shows the units of additional satisfa...
The curve JK in the diagram is a consumer's initial budget line. [Figure 6.1] Which combination could cause the budget line to shift to GH?
The diagram shows a consumer's indifference curves (IC) for goods F and G together with the consumer's budget lines. [Figure 7.1] What could explai...
A firm has the choice between five levels of output. The table shows the total cost and total revenue of producing at each output level. The firm c...
In which type of market structure are commercial banks usually found?
What is a condition for operating a successful cartel?
Which assumption is essential for a market to be contestable?
What is generally associated with the principal-agent problem?
The table shows the output of chairs at a factory when different numbers of workers are employed. number of workers 0 1 2 3 4 5 number of chairs pr...
The chart gives information about the average daily wage rate for all industries in India. [Figure 14.1] What could have caused this trend in wage ...
A country has a negative income tax regime. The curve NT in the diagram shows the country's initial tax schedule. [Figure 15.1] A change in the tax...
There is a fixed supply of skilled workers in an industry. Firms can no longer find enough workers to meet their demand for labour. What could be a...
A government is worried about the increasing monopsony power of employers in the wage bargaining process. Which policy combination is most likely t...
What is not a source of market failure?
A government regards fresh fruit and vegetables as merit goods, and subsidises agriculture to boost their production. What could be a government fa...
Which type of unemployment is associated with a deficiency in aggregate demand?
In the diagram, OP is the equilibrium level of income and OQ the full employment level of income in a closed economy. [Figure 21.1] What is the def...
What represents an injection into a country's circular flow of income?
What will be the most likely consequence of an increase in the dependency ratio?
The diagram shows a production possibility curve PPC1. The economy is initially at point X. [Figure 25.1] If the economy achieves actual economic g...
It has been estimated by the United Nations that the total external debt of developing countries has been increasing by about $425 billion each yea...
The following are four conditions sometimes attached to IMF loans to developing countries. Which condition would conflict with the 'infant industry...
In which exchange rate regime would the central bank of a country be best able to pursue an independent monetary policy to control the rate of infl...
What is measured on the vertical axis of the Phillips curve?
Workers in poor countries are often less productive than workers using the same technology in rich countries. What would be most likely to remedy t...
What is not an example of an externality? A A new firm is established in an area and pays its workers higher wage rates than other firms. B The flo...
The diagram shows the long-run equilibrium positions for two firms, X and Y. price firm X LRMC LRAC Px AR=MR Ο qx quantity Py firm Y LRMC LRAC MR ...
The production of a good creates a constant marginal external cost at all levels of output. What value of price elasticity of demand for the good w...
What arises in situations where there are costs or benefits associated with a transaction that are not fully reflected in market prices? A allocati...
To maximise the satisfaction she derives from a given level of expenditure on two goods, X and Y, how should a consumer allocate her expenditure be...
The diagram shows the indifference curves (IC) for a consumer for goods X and Y together with the consumer's budget lines (BL). good X IC IC₁ BL BL...
The price of brand X is $2 and the price of brand Y is $1. The consumer has $20 income to spend on these brands. Which combinations of the two bran...
The diagram shows an industry's demand and supply curves. The industry increases supply from S₁ to S2. price V W X y S 1 S2 quantity Which area sho...
Which diagram accurately represents the revenue curves of a producer in imperfect competition? cost, revenue cost, revenue A cost, revenue TR B TR ...
The diagram shows the cost and revenue curves of a firm in a contestable market. cost, revenue P 1 P P2 P 3 P4 P 5 MR AC MC AR Ο Q1 Q5 Q2 Q3 Q4 qua...
The table shows details of mergers (purchases and sales) involving UK companies in 2015 and 2016. transactions abroad transactions in the UK by UK ...
What would explain an increase in the size of an industry and a fall in the average output of the firms in an industry? A an advance in communicati...
Which characteristic would make it easier for firms in an industry to collude? A a large number of firms B homogenous products C low barriers to en...