IGCSE Economics (0455) — May–June 2023, Paper 11
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →What is the cause of scarcity in an economy? A high employment levels B high investment levels C unlimited resources D unlimited wants
Answer this question and get it marked →What does a point on a production possibility curve for an economy represent? A economic growth is falling B inefficient use of resources available C maximum output possible with…
Answer this question and get it marked →What is most likely to increase enterprise as a factor of production in an economy? A a decrease in government spending on education B a decrease in regulation on firms C an…
Answer this question and get it marked →Which economic activity would be classified as macroeconomics? A households spend less on holidays abroad B income tax is increased by the government C wages rise for construction…
Answer this question and get it marked →The diagram shows the effect of a decrease in price on the demand for a product. What does the arrow on the diagram illustrate? A contraction in demand B decrease in demand C…
Answer this question and get it marked →What is the correct formula to calculate price elasticity of supply? A the percentage change in price divided by the change in quantity supplied B the percentage change in price…
Answer this question and get it marked →What is the most likely cause of a product having a price elasticity of demand greater than one? A The product has a close substitute. B The product is a habit-forming good. C The…
Answer this question and get it marked →For some illnesses, wearing a face mask has a benefit as it could prevent people from getting infected. Not all people are willing to wear face masks. Based on the statement…
Answer this question and get it marked →What would bring about a movement upwards along the supply curve for rice? A a decrease in the productivity of rice workers B a decrease in the profitability of rice production C…
Answer this question and get it marked →A government decides to reduce air pollution in city centres by giving financial assistance to bus companies, reducing their costs of production and prices for passengers. Which…
Answer this question and get it marked →What would be least likely to act as a store of value during a period of rapid inflation? A cash B gold C property D shares
Answer this question and get it marked →A country's central bank raised the rate of interest from 1% to 4% per year. How would this change have affected the amount saved and the cost of borrowing by individuals? amount…
Answer this question and get it marked →Which factor would not increase the bargaining strength of a trade union to raise wages? A a rapidly growing economy B high union membership in the industry C legislation limiting…
Answer this question and get it marked →Which conditions are most likely to attract small firms to enter a market? the market for the product fixed costs of entering the industry --- --- --- A local high B local low C…
Answer this question and get it marked →The diagram shows a firm's total cost (TC) curve. What is the average variable cost if the firm produces 10 units of output? A $4 B $5 C $40 D $50
Answer this question and get it marked →The table shows the units of factors of production that a firm needs to employ for two different levels of output. land labour capital output --- --- --- --- 5 2 4 100 10 4 8 150…
Answer this question and get it marked →What is an example of a government macroeconomic aim? A a minimum of 10 years of schooling B a sales tax of 10% on consumer goods C a target rate of 2% inflation D increasing pay…
Answer this question and get it marked →Government policy measures can affect economic activity in a country. Which pair of monetary policy measures would be likely to increase employment? A depreciate foreign exchange…
Answer this question and get it marked →What would be most likely to encourage saving? A a rise in the exchange rate B a rise in the goods and services tax rate C a rise in the income tax rate D a rise in the interest…
Answer this question and get it marked →The government of a country operating at full employment increases its spending on education and training. How does this affect the likelihood of achieving low inflation in the…
Answer this question and get it marked →A government has introduced a tax on a necessity. Producers have passed on a large proportion of this tax to consumers in the form of higher prices. Which row is correct? type of…
Answer this question and get it marked →What is most likely to lead to an increase in structural unemployment in a country? A The country is experiencing a period of negative economic growth. B The country is…
Answer this question and get it marked →Which citizens are most likely to benefit in a period of rapid inflation? A citizens who are receiving fixed state benefits B citizens who earn fixed incomes C citizens who have…
Answer this question and get it marked →Which statement is correct about the Human Development Index (HDI) and real GDP? A HDI includes exports and imports while real GDP does not. B HDI includes life expectancy and…
Answer this question and get it marked →Other things being equal, what will cause a population both to increase and to age? A a fall in the birth rate B a fall in the death rate C a rise in both the birth rate and the…
Answer this question and get it marked →Which change would be unlikely to be found in a country as it develops? A an increase in average incomes and a decrease in unemployment B an increase in manufacturing production…
Answer this question and get it marked →It is cheaper for developed economies to buy some cereals from developing economies than to produce them domestically. What might reduce international trade in cereals? A Cereals…
Answer this question and get it marked →A country imposes a quota on imported cars. What is the most likely outcome of this action? A a decrease in the domestic output of cars B a decrease in the price of cars C an…
Answer this question and get it marked →An Argentine product initially sells in the US for $50 when the exchange rate between the two countries is 5 pesos to 1 dollar. The exchange rate changes to 10 pesos to 1 dollar…
Answer this question and get it marked →Which policy measure is most likely to reduce the current account deficit of the balance of payments of an economy? A decrease the level of subsidies to domestic producers B…
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