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 fashion model is paid $500000 a year. If the next best paid job he could get is as a teacher at $100000 a year, what are his transfer earnings an...
Wages in industry X are significantly higher than in industry Y. What could explain this difference? A Workers in industry Y are highly mobile. B T...
Good X is a popular product that creates a negative externality when it is consumed. Good Y is a more expensive substitute for X with fewer negativ...
Which changes in direct and indirect tax are likely to increase the inequality in the distribution of income in a developed economy? direct taxes i...
A city has a problem with litter on its streets. The city council is considering several measures to reduce the litter. Which measure to reduce lit...
The government wants to regulate the consumption of a demerit good in order to increase society's net welfare. In which situation will society's ne...
In 2015 New Zealand had a real Gross Domestic Product per capita of $34 762. Why might this figure not be a good indicator of living standards? A F...
'The United Nations Development Programme states that economic growth and development will not reduce poverty, improve equality, generate jobs and ...
The table shows information about employment in a country. year numbers employed 2012 10 m 2017 11 m unemployment rate (%) 2 10 What can be conclud...
Which type of unemployment results from industrial reorganisation due to technological change? A cyclical unemployment B frictional unemployment C ...
During a year, a country's national income in money terms increased by 5%, prices increased by 4% and the total population increased by 2%. What wa...
Commercial banks in a country hold $50 million in cash but have created $600 million deposits. The central bank raises the cash deposit ratio to 10...
According to Keynesian theory, in which circumstance would there always be an increase in the demand for money? real income price level interest ra...
A country decides to abolish its tariff on imports of copper from Zambia. Under which circumstances would this benefit Zambia? A The income elastic...
A small island economy imports most of its raw materials and demand for its exports is price-elastic. What would be the most likely effect of an ap...
What will be most likely to rise if unemployment is increasing in an economy? A the human capital of unemployed workers B the living standards of a...
The table gives some economic indicators for four countries. Which country is closest to achieving the principal aims of government economic policy...
Growth and the uncertain economic system Competition and a market economy support industrialisation and create higher living standards. The collap...
'Competition is an essential element of an efficient market economy. If there is a monopoly then there is no competition. Monopolies exist in all e...
Explain what is meant by a consumer's equilibrium and how it is related to the demand for a product.
What relation is there, if any, between the law of diminishing returns and internal and external economies of scale?
Explain why economists use a Lorenz curve and a Gini co-efficient and comment on likely government policy implications if a country's Gini co-effic...
'The Human Development Index (HDI) is a more useful indicator of changes in living standards than changes in Gross Domestic Product (GDP) but it st...
Discuss the effects of an expansionary monetary policy on the demand for money.
The Economic Outlook for Japan In 2017, the forecast of the Bank of Japan (the country's central bank) was that Japan's economy was likely to enjoy...
'Free markets make the most efficient use of resources and are the foundation of a successful economy.' To what extent do you agree with this?
Explain what is meant by a normal good and comment on the link between total utility, marginal utility and a consumer's demand curve for that good.
Explain how a firm maximises its profit in perfect competition.
Explain the relevance of economic rent and transfer earnings when comparing the wages of skilled workers and unskilled workers.
Evaluate how the relative size of injections into and leakages from the circular flow of income can affect the ability of a government to achieve i...
Discuss whether countries at different stages of development should use different methods of measuring living standards.
Production, living standards and market failure Today, the average person lives better than they did fifty years ago. Two reasons are given for thi...
Explain the meaning of and whether there is a link (i) between Pareto optimality and equality; (ii) between free markets and equity.
Critically discuss the explanation in economic theory of how a rational consumer exercises choice and how it links to a demand curve.
Contrast the features of a perfect competitive market with those of an oligopoly and compare the aims of the firms in each of these market structures.
Analyse and discuss whether the economic theory of wages can explain why there are inequalities in wage rates in a country.
Explain the speculative motive for the demand for money and consider its significance in relation to monetary policy.
'There have been many attempts to measure changes in living standards both within and between countries. Although some have been more useful than o...
The diagram shows a production possibility curve. What can be deduced from the shape of this curve?
Below are two statements. 1 A rise in the price of rice is the best way to give farmers in South-East Asia higher living standards. 2 A rise in the...
What is a characteristic of money but not a function of money?
In the UK, attempts to encourage people to change from road to rail travel by the introduction of a system of road pricing were forecast to have li...
The diagram shows the market supply and demand for a good. Which area represents producer surplus?
Vanilla is an important ingredient in the production of ice cream. Between 2011 and 2018 the price of vanilla increased from about US100 per kg to ...
A government reduces income tax but at the same time raises the rate of sales tax (VAT). What are the likely effects on the demand and supply of a ...
An increase in the popularity of air conditioning units has resulted in their price increasing by 20%. In response to this the quantity supplied in...
Which change does not have an immediate effect on the position of the demand curve for a product?
A firm estimates that the price elasticity of supply of its product is 0.4. Should the firm be concerned by this figure?
A government decides to privatise a state-owned company. What should the government do to try to ensure that this will result in an improvement in ...
The graph shows an individual's income before and after the deduction of income tax. What is the marginal percentage rate of tax between $0 and $10...