IGCSE Economics (0455) — May–June 2023, Paper 12
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →What is part of the economic definition of scarcity? A high levels of taxation B low levels of investment C unequal distribution of income D unlimited consumer wants
Answer this question and get it marked →A country's production possibility curve (PPC) moves from PPC1 to PPC2. What could cause this movement in the PPC? better education higher investment lower unemployment --- ---…
Answer this question and get it marked →A government spends $100m on subsidising wind farm construction instead of spending it on an increase in healthcare. Which economic concept does this spending decision illustrate?…
Answer this question and get it marked →What is an example of a macroeconomic indicator? A agricultural prices B average earnings in the secondary sector C real Gross Domestic Product (real GDP) D total costs of German…
Answer this question and get it marked →Good X is demanded in two areas, Y and Z. The table shows the amount of X demanded in these areas at different prices. price of good X (US$) quantity demanded per month, area Y…
Answer this question and get it marked →Which price elasticity of demand (PED) would cause an increase in total revenue if the price of the good increased? A perfectly elastic B relatively elastic C relatively inelastic…
Answer this question and get it marked →The diagram shows the supply curve for coffee. The price of coffee increases from P1 to P2. How would this benefit firms in the coffee industry? A A higher price gives firms the…
Answer this question and get it marked →What might be an external benefit of an increase in the number of university graduates in an economy? A an increase in revenue for the universities from fee-paying students B an…
Answer this question and get it marked →The price of a good increases. What could cause this? A The cost of raw materials falls. B The incomes of consumers rise. C The price of a complement rises. D The price of a…
Answer this question and get it marked →Imposing a maximum price for a good is an example of which type of government policy? A fiscal B monetary C regulation D supply-side
Answer this question and get it marked →Savers suffer as inflation rises to 4.4%. Which function of money is most involved in this statement? A means of deferred payments B medium of exchange C store of value D unit of…
Answer this question and get it marked →One of the functions of money is to act as a measure of value. What does this mean? A Money allows people to borrow and lend. B Money allows people to save their surplus income. C…
Answer this question and get it marked →Which trade union activity will be beneficial for firms? A balloting for industrial action to prevent redundancies B campaigning to raise wages of trade union members C…
Answer this question and get it marked →What is not a variable cost of production? A cost of fuel B cost of raw materials C extra pay for working additional hours D rent of offices
Answer this question and get it marked →What is a definition of a firm's revenue? A money received from sales B sales volume C surplus over costs D tax payments
Answer this question and get it marked →What could cause internal diseconomies of scale for a firm? A a fall in demand for the products produced by the firm B a merger with another firm that results in slower…
Answer this question and get it marked →A government decides to leave direct taxes unchanged but to increase indirect taxes. What is this policy intended to achieve? A to increase the value of the exchange rate B to…
Answer this question and get it marked →What is the most likely reason to increase government subsidies? A to decrease consumption of a merit good B to increase consumption of a merit good C to decrease consumption of a…
Answer this question and get it marked →Which people are most likely to gain at a time of inflation? A companies who sell abroad B foreign tourists visiting the country C those living on their savings D those who are…
Answer this question and get it marked →The government of country Z announces an increase in spending on work-place training. What is the effect of this supply-side policy likely to be? A a decrease in country Z's…
Answer this question and get it marked →The table shows real GDP in US$ billion for a country over a three-year period. year real GDP US$ billion --- --- 1 205 2 215 3 219 What does the GDP data indicate for the country…
Answer this question and get it marked →What is a likely consequence of a falling level of unemployment? A downward pressure on wage rates B increase in welfare benefit payments C rise in absolute poverty D rise in…
Answer this question and get it marked →The diagrams show Italy's unemployment rate and GDP per head. When do Italy's unemployment rate and GDP per head rise at the same time? A 2000–2001 B 2007–2008 C 2009–2010 D…
Answer this question and get it marked →During a recession, many people in a city become unemployed and their incomes fall. Some people can no longer pay the rent on their houses or buy the food they need. What is the…
Answer this question and get it marked →The Peruvian government set itself the target of reducing the number of its population in poverty. What change does not indicate that the Peruvian government had made progress…
Answer this question and get it marked →What is not a reason for the decline in manufacturing industries in developed economies in recent years? A growth of newly industrialised competitor countries B invention of…
Answer this question and get it marked →The table shows a country's exports and imports. $m --- --- exports of goods 200 imports of goods 190 exports of services 35 imports of services 38 What was the country's balance…
Answer this question and get it marked →Country X exports steel to country Y at a price below its cost of production. This has led to a fall in demand for steel produced in country Y. What is a method of trade…
Answer this question and get it marked →What would increase the demand for a country's currency on the foreign exchange market? A a decrease in its inward investment B a decrease in its rate of interest C an increase in…
Answer this question and get it marked →Country X has a persistent deficit on the current account of the balance of payments. Which policy measure is most likely to improve this situation? A lowering import quotas B…
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