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 graph shows the demand and supply curves for an industry. [Figure 6.1] What would cause a shift in the supply curve from S₁ to S2?
A firm produces a good using a very labour-intensive process. There is an increase in the price of the good. Under which conditions will the supply...
What is most likely to cause the demand curve of an inferior good to shift to the right?
The diagram shows four supply curves. [Figure 9.1] Which curve has a price elasticity of supply of 1 for all levels of quantity supplied?
The diagram shows a shift of the supply curve in a market from S₁ to S2. [Figure 10.1] How will the consumer surplus and producer surplus change?
In the diagram, S₁ and S2 are the supply curves for an agricultural product in years 1 and 2 respectively. D is the demand curve in years 1 and 2. ...
Inequality in an economy can be categorised as either income inequality or wealth inequality. What is most likely to cause greater wealth inequalit...
A product with infinite elasticity of supply has sales of 1000 units a week at a price of $1 per unit. Price elasticity of demand is 1.5 over the r...
The table shows the values of Consumer Prices Index (CPI) and a worker's salary in 2022 and 2023. [Table 15.1] What is the real value of the worker...
An economy experiences rising unemployment due to incomes falling as a result of a virus pandemic. How would this unemployment be classified?
What is likely to move an economy's aggregate demand curve to the right?
Which items have to be added to and subtracted from Gross Domestic Product at market prices to calculate the value of Gross Domestic Product at bas...
What is an example of a macroeconomic policy?
Which supply-side policy is likely to lower real output before raising it?
An economy is in equilibrium at point E on the diagram. The government reduces its expenditure on defence. [Figure 22.1] Which point on the diagram...
The number of people employed in a country and the level of unemployment both decrease. What could explain this?
Which circumstances would most help a firm to gain from a depreciation of the exchange rate?
A country has a floating exchange rate. Its current account on the balance of payments moves from a surplus to a deficit. Which rate is likely to i...
Which policy is most likely to reduce a balance of payments deficit without causing inflation?
The table shows the average price of exports and imports. [Table 27.1] Which combination of changes in export prices and import prices could result...
Turkey imported $220 million worth of goods and services. Turkey exported $12 million worth of goods and services during the same period. Its net i...
The table shows the exchange rate for national currencies per US dollar. [Table 30.1] Which currency has the smallest percentage appreciation again...
Can economic growth in Chile reduce income and wealth inequality? Chile is the world's biggest copper producer with 28% of global copper production...
EITHER With the help of a diagram(s), briefly explain how the cause of a movement along the demand curve differs from the cause of a shift in the d...
OR With the help of a production possibility curve (PPC) diagram(s), explain the difference between constant and increasing opportunity costs and c...
EITHER Explain two methods of measuring unemployment and consider the extent of the possible difficulties in obtaining an accurate measurement of u...
OR With the help of examples, explain the difference between the marginal rate of taxation and the average rate of taxation and consider whether a ...
What is an example of a normative statement?
A public good must both be non-rivalrous in consumption and have the characteristic of non-excludability. Which situation meets both of these condi...
What is not a characteristic of a planned economy?
A student chooses to study for a degree in engineering at university rather than take a job working as an apprentice engineer. The apprenticeship l...
The diagram shows a production possibility curve (PPC) for a country that produces two goods, X and Y. The initial PPC is given by ST. [Figure 5.1]...
The diagram shows a market supply curve (S). [Figure 7.1] What is measured on the X-axis and the Y-axis?
The diagram shows the demand curve for a product. [Figure 8.1] What is the price at which the price elasticity of demand is unit elastic?
Public transport in an economy has an income elasticity of demand of –0.36. What does this mean about public transport?
Which type of good is most suitable for a successful buffer stock scheme?
The demand for electric vehicle batteries is derived from the demand for electric vehicles. To tackle climate change, a government subsidises produ...
The diagram shows the market for a demerit good. The initial equilibrium is at point X. [Figure 12.1] What will be the new equilibrium if the gover...
To improve the health of people, a government puts a tax on the sale of drinks that contain sugar. What are the likely effects of this tax on both ...
The income Gini coefficient of a country changes from 0.29 to 0.33 over time. What might explain this change?
What is an example of an injection into the circular flow of income in an open economy?
The diagram shows the AD and AS curves for a country. The equilibrium level of national income is Y₁ and the general price level is P₁. [Figure 16....
The diagram shows aggregate demand and aggregate supply curves for an economy. [Figure 17.1] What would cause a change in the aggregate demand from...
A government reduces the benefits that it pays to unemployed workers to increase the incentive to work. Which types of macroeconomic policies are b...
A central bank is asked by the government to help achieve price stability. If inflation rises steeply, which policy will not be directly within the...
What is not a likely reason for a government having the objective of economic growth?
What is the effect of an increase in the money supply on the interest rate and the aggregate demand (AD) curve?
A country has a target rate of inflation of 2.5% and has recently experienced the actual rate rising to 6%, with unemployment falling to very low l...
What is the most likely reason for a government to introduce a progressive tax?
What is the least likely consequence of rapid economic growth?