IGCSE Economics (0455) — May–June 2023, Paper 13

30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.

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Question 1 · 1 mark

GDP per capita in Switzerland is high. What is the reason why Swiss citizens still face the basic economic problem? A Income in Switzerland is unevenly distributed. B Inflation in…

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Question 2 · 1 mark

The production possibility curve of a country has shifted from PPC1 to PPC2. What could have caused this shift? A a decrease in the rate of unemployment B a fall in the birth rate…

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Question 3 · 1 mark

What is most likely to increase the geographical mobility of labour? A an increase in the amount of credit available to firms B an increase in the quantity of low-cost housing C…

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Question 4 · 1 mark

What is not a microeconomic decision? A A firm decides to increase the price of its product. B A government decides to increase interest rates. C A household decides to reduce its…

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Question 5 · 1 mark

What is a feature of a market in equilibrium? A demand exceeds supply B no profits are earned C the market will clear D there will be a surplus of products

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Question 6 · 1 mark

The diagram shows the supply curve for a good. What is the name and cause of the movement from X to Y? A a contraction of supply caused by a decrease in demand B a contraction of…

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Question 7 · 1 mark

In the diagram, which supply curve has the perfectly inelastic supply? A curve A B curve B C curve C D curve D

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Question 8 · 1 mark

The diagram shows the market for petrol (gasoline). SP is the supply of petrol based on the private cost of petrol production and SS is the supply of petrol based on the social…

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Question 9 · 1 mark

In a given year, the world output of coal was 3.94 billion metric tonnes at an average yearly price of $252 per metric tonne. Several years later, world output was 3.66 billion…

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Question 10 · 1 mark

A government believes that people eat too much sugar but not enough fruit. Which combination of policies would the government introduce? sugar fruit --- --- --- A increase its tax…

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Question 11 · 1 mark

Which row shows a characteristic of money and a function of money? characteristic function --- --- --- A acceptability medium of exchange B cash measure of value C divisibility…

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Question 12 · 1 mark

When will a central bank act as lender of last resort to a commercial bank? A when a commercial bank faces a liquidity crisis B when a commercial bank fails to make a profit C…

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Question 13 · 1 mark

What is likely to increase the bargaining power of a trade union? A when the economy is experiencing rising cyclical unemployment B when the labour market moves from long-term to…

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Question 14 · 1 mark

What is a likely reason why firms do not grow in size? A External diseconomies of scale occur at high levels of output. B Internal economies of scale occur at high levels of…

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Question 15 · 1 mark

The table shows the activities of four firms. firm 1 firm 2 firm 3 firm 4 --- --- --- --- shoe manufacture website design shoe manufacture shoe retailer Which combination of firms…

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Question 16 · 1 mark

What is a reason why firms making similar products sometimes locate near each other? A Competition is decreased. B There are external economies of scale. C There are internal…

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Question 17 · 1 mark

A government wishes to increase its spending on public goods. Which sector should have a spending increase to achieve this? A education B healthcare C national defence D railways

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Question 18 · 1 mark

Which government measure would lead directly to more exports of goods? A a devaluation of the currency B a restriction of bank credit creation C an increase in the rate of…

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Question 19 · 1 mark

A government wishes to stimulate economic recovery. Which action will assist this? A decreasing government investment B decreasing income tax C increasing indirect taxation D…

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Question 20 · 1 mark

What is the most likely effect on an economy of a successful supply-side policy? A an increase in the general price level B an increase in the interest rate C an increase in the…

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Question 21 · 1 mark

A country is experiencing high economic growth caused by an increase in consumer spending. What are the most likely effects on inflation and unemployment? A inflation falls and…

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Question 22 · 1 mark

Which pair is most likely to be provided by the private sector in a mixed economy? A courts and prisons B hospitals and tax collection C insurance and banks D weapon manufacture…

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Question 23 · 1 mark

An economy is experiencing a sustained fall in the general price level. Which term is used to describe this? A deflation B depreciation C market disequilibrium D recession

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Question 24 · 1 mark

What is most likely to cause an increase in relative poverty? A an increase in state benefits B an increase in the national minimum wage C pension increases below the rate of…

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Question 25 · 1 mark

What might explain the high population growth in some developing countries? A high birth rates and falling death rates B low immigration and high emigration C falling birth rates…

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Question 26 · 1 mark

Which combination of factors might cause a country to be classified as developing rather than developed? A a government budget deficit and a low death rate B a high birth rate and…

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Question 27 · 1 mark

What is certain to encourage a higher level of international trade? A conservation of resources and unstable exchange rates B exploitation of resources and wider use of quotas C…

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Question 28 · 1 mark

The import of a product from another country has been banned. Which term describes this method of protection? A embargo B exchange control C quota D tariff

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Question 29 · 1 mark

A developing country's two major sources of income from international trade are fishing and tourism. If the country's exchange rate depreciated, what is likely to happen? A…

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Question 30 · 1 mark

What is the correct formula for calculating the current account of the balance of payments? A balance of trade in goods + balance of trade in services + primary income balance +…

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