AS & A Level · Cambridge 9708

Economics 9708

7,769 practice questions with worked solutions, organised by topic and past-paper session. Practise any question and get your answer marked instantly.

Practise by topic

Scarcity, choice and opportunity cost Economic methodology Factors of production Resource allocation in different economic systems Production possibility curves Demand and supply curves Price elasticity of demand Price elasticity of supply Income elasticity of demand Cross elasticity of demand Market equilibrium and disequilibrium Consumer and producer surplus Government intervention in markets Maximum and minimum prices Taxes and subsidies Buffer stocks National income statistics Aggregate demand and aggregate supply Economic growth Unemployment Price stability and inflation Balance of payments Government macroeconomic policy objectives Fiscal policy Monetary policy Supply-side policy International trade and free trade Protectionism Utility and rational consumer behaviour Indifference curves and budget lines Behavioural economics Law of diminishing returns Short-run costs Long-run costs and economies of scale Revenue Perfect competition Monopoly Monopolistic competition Oligopoly Price discrimination Efficiency Market failure Externalities Public goods Information failure Labour market Wage determination Trade unions Economic growth and sustainability Income inequality Poverty Macroeconomic policies revisited Policy conflicts Globalisation Trade agreements Economic development

By past paper

Feb/March 2017 Feb/March 2016

Example questions

An individual has a meeting scheduled with his bank manager. He can either go to the meeting in his car, or keep the car at home and make the journey by bus followed by train. The journey costs are shown below. $ bus fare 2 train fare 3 car parking charge 4 petrol 2 car wear and tear costs 1 Using this information, what is the opportunity cost to the individual of going by car instead of by bus and train?

Scarcity, choice and opportunity cost · Feb/March 2016

The demand for tablets rises, while the cost of making them falls. What effect will this have on the price of tablets and on the quantity supplied?

Income elasticity of demand · Feb/March 2016

A specific tax is charged on each bottle of perfume sold. In the diagram, SS is the supply curve before tax, while StSt is the supply curve after tax. Which area shows the part of the tax revenue paid by producers?

Maximum and minimum prices · Feb/March 2016

In which market would equilibrium not be reached at point E if price were above Op?

Income elasticity of demand · Feb/March 2016

A company made a garden open to the public and asked visitors to pay to enter. The government later awarded a grant to improve the garden, provided that admission was made free. What would be the outcome of the government’s action?

Maximum and minimum prices · Feb/March 2016

The diagram presents the percentages of people on low pay and those on extremely low pay in the UK from 1976 to 2012. A national minimum wage was introduced in 1999. Which conclusion is consistent with the diagram?

Maximum and minimum prices · Feb/March 2016

A 10% tax is imposed on a good. Which type of product would be most likely to experience the greatest effect on its equilibrium price as a result?

Price elasticity of demand · Feb/March 2016

During 2009, the Australian government paid $900 to people earning under $100 000 each year. What would be the effect of this transfer payment called?

Fiscal policy · Feb/March 2016

The diagram illustrates the market for wheat. If the government wants to set the price at OP2, what quantity of wheat does the government need to purchase?

Maximum and minimum prices · Feb/March 2016

Under a privatisation policy, a government removes regulation from bus services and transfers its publicly owned bus services to the private sector. Which outcome is least likely to happen after these changes?

Law of diminishing returns · Feb/March 2016