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.
In year 1, in the market for a good represented in the diagram, the initial demand and supply conditions are shown by D₁ and S₁, and the government...
What is necessary for an action to be classed as a transfer payment?
The market for good X is in equilibrium. The government introduces a subsidy to the producers of good X. Under which conditions will the total expe...
Under which combination of circumstances will a policy of increasing the money supply be most effective at moving an economy out of recession?
In which economic context is the term 'protectionism' usually applied?
The table shows an approximate summary of the current account of the balance of payments for Thailand. What is the current account balance, in mill...
The diagram shows the production possibility curves for two economies using all resources. Country X can produce 10 million cars or 20 million bicy...
A country has a balance of payments deficit. It devalues its currency. Which combination leads to a reduction in its balance of payments deficit in...
The diagram shows aggregate demand curves AD₁ and AD2 and an aggregate supply curve AS1. What could cause the shift in the aggregate demand curve f...
The government of an open economy with an overvalued currency decides to abandon its fixed exchange rate in favour of a floating exchange rate. Whi...
Devaluation always has the effect of
A government uses monetary policy and fiscal policy to solve a problem of deflation. Which policy combination is likely to be the most successful?
A government reduces its expenditure on workplace training, increases the level of indirect taxes, and reduces the rate of interest it pays on gove...
What represents the total of aggregate demand in a closed economy?
What is a function of money?
What is classified as a public good by economists?
Which statement about the factors of production is correct?
Which supply curve shows that the price elasticity of supply of the good is always equal to 1?
What could cause a shift in the supply curve of good X and a movement along its supply curve?
The market for mobile phones is initially in equilibrium at X. The government then imposes a sales tax. What is the government's total tax revenue ...
What is an example of the rationing function of the price mechanism?
In 2016 car drivers bought more fuel because the price of oil from which it was made had fallen. Which diagram represents this change in the market...
The diagram shows the demand and supply curves for bread in a developed economy. Bread is a substitute for pasta and rice. What would cause the dem...
The table shows the quantity demanded of three goods when the price of good X changes. Which relationships between X, Y and Z can be deduced from t...
The diagram shows three supply curves. What can be concluded about the price elasticity of supply of the curves?
The diagram shows the market for smartphones in India. Rising incomes in India have seen a demand for this normal good shift from D₁ to D2. Which a...
A nationalised industry is privatised. Assuming there is no change in the output of the industry in the short run, what are the direct effects of t...
What is a distinguishing feature of a progressive income tax?
Why might a government nationalise a private firm?
The diagram shows a firm's supply of and demand for apples. If a minimum price is increased from P₁ to P2 what will happen to the amount of apples ...
In an attempt to reduce crime, a government introduces a subsidy on the production of burglar alarms, but sales rise very little. Which possible ch...
Compared with Pakistan, Germany has a higher output of pharmaceuticals per unit of resources used. What could explain this?
Why is it that a country's balance of payments must always balance?
Which argument for protection would be most relevant if the government of country X decided to exercise voluntary export restraint in its trade wit...
The average price of a country’s exports increased by 5% and the average price of its imports increased by 10%. What can definitely be concluded fr...
There is an increase in indirect taxes. What will be the impact on demand-pull inflation and on cost-push inflation?
The table shows the number of biscuits and cakes that can be produced by four workers in an hour. Who has the greatest comparative advantage in pro...
Which condition is necessary for a country’s balance of payments on its current account to improve if it reduced its exchange rate?
The diagram shows the effect of the United States (US) imposing a tariff on the import of steel in 2018. Which statement about the impact of the ta...
In 2012, the Indian Government stated that it aimed to reduce its budget deficit to 5.1% of GDP. Which policy is most likely to help this aim in th...
What would make a policy of raising interest rates less likely to be effective in reducing inflation?
Country X is an open economy with a floating exchange rate. It changes to a fixed exchange rate. Which combination of policy changes would be most ...
In a planned economy, what will determine the allocation of scarce resources?
A key concept in classifying goods is whether a good is rival or non-rival. Which good is rival in consumption?
What is a normative statement?
The diagram shows an economy's production possibility curve (PPC). The economy has moved from X to Y. What can be deduced from the diagram?
An indirect tax is imposed on a product, causing total expenditure by consumers to increase. Which row identifies this situation?
The price elasticity of the supply of yoghurt is +1.5. If the demand for yoghurt rises and price rises by 20%, how much more will be supplied to th...
The diagram shows the market demand for and supply of a good. Which statement is not valid?
The diagram shows two linear supply curves labelled S₁ and S2, where S2 is a 45° line. Which statement about the price elasticity of supply is corr...