IGCSE Economics (0455) — October–November 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 →Economists describe resources as being 'scarce'. What must be a consequence of scarce resources? A production will cause external costs B relative poverty will gradually increase…
Answer this question and get it marked →The diagram shows the production possibility curve (PPC) for an economy producing consumer goods and capital goods. The economy is currently producing OM consumer goods and OG…
Answer this question and get it marked →A hospital has spent all of its budget allocated for employing doctors. What is the opportunity cost to the hospital of employing an extra doctor? A a reduction in the number of…
Answer this question and get it marked →There has been an increase in the demand for wheat. This has led to an increase in the demand for labour to harvest the wheat. Which branch of economics covers these two concepts?…
Answer this question and get it marked →In the United Kingdom (UK), the price of timber used in house building increased. This was because of a boom in the UK house building industry and a shortage of drivers to deliver…
Answer this question and get it marked →What does a supply curve show? A A firm will supply more when consumers' purchasing power increases. B The higher the price, the fewer goods are supplied as costs of production…
Answer this question and get it marked →A global pandemic causes the demand for air travel to decrease. Which value for the price elasticity of supply of air travel will cause the number of tickets for air travel to…
Answer this question and get it marked →What is a disadvantage of a market economy? A not enough competition B not enough merit goods C no consumer choice D state intervention
Answer this question and get it marked →Droughts in some countries caused the supply of wheat to fall. Wheat prices then rose providing an opportunity for wheat producers in other countries to increase supply. Why might…
Answer this question and get it marked →Newly built houses tend to be inelastic in supply. A government aim is to make the supply more elastic by relaxing building regulations. Why is the government not likely to…
Answer this question and get it marked →A person planning for old age saves in the form of money rather than goods. Which function does money perform when this is done? A medium of exchange B standard of deferred…
Answer this question and get it marked →What is not normally a function of the central bank of a country? A acting as lender of last resort B issuing notes and coins C operating the government monetary policy D setting…
Answer this question and get it marked →What is a trade union most likely to protect? A the profit of a firm B the rights of a group of workers C the satisfaction of consumers D the social welfare of everybody
Answer this question and get it marked →A person sets up a street food stall. What is necessary for the food stall to survive in the long run? growth profitability --- --- --- A no no B no yes C yes no D yes yes
Answer this question and get it marked →A large privately owned firm is the sole supplier of electricity to a city. Which combination of characteristics is likely to exist for this firm? barriers to entry long-run…
Answer this question and get it marked →When a firm produces 200 units, its total variable cost is $600 and its total fixed cost is $2000. What is the average cost at this output? A $3 B $10 C $13 D $2600
Answer this question and get it marked →The government of country Z announces a forecast budget deficit of $234 billion, as part of its fiscal policy. What is the effect of this forecast budget deficit likely to be? A a…
Answer this question and get it marked →Low-income groups do not pay income tax but are able to use state-provided healthcare services. What does this illustrate? A monetary policy B privatisation C redistribution of…
Answer this question and get it marked →The government uses monetary policy and reduces the interest rate. What might be a consequence of this? A a decrease in the rate of inflation B an increase in the level of…
Answer this question and get it marked →What is a likely objective of supply-side policy? A improving productive potential B increasing direct taxation C increasing the power of trade unions D promoting the public sector
Answer this question and get it marked →An increase in which economic indicator best describes economic growth? A general price level B level of consumption C level of output D living standards
Answer this question and get it marked →What is full employment considered to be? A no cyclical unemployment B no frictional unemployment C no private sector unemployment D no seasonal unemployment
Answer this question and get it marked →Which group is most likely to benefit during a period of rapid inflation? A exporters B pensioners C people with debts D savers
Answer this question and get it marked →What are the components of the Human Development Index (HDI)? A life expectancy at birth, expected years of schooling, gross national income (GNI) B life expectancy at birth,…
Answer this question and get it marked →Which situation must produce an ageing population? A a falling birth rate and a falling death rate B a rising birth rate and a rising death rate C a rising marriage rate and a…
Answer this question and get it marked →The table shows the unemployment rate in three developed economies in one year. unemployment rate % --- --- United States 7.6 Sweden 8.2 France 10.9 What is the main cause of high…
Answer this question and get it marked →What is most likely to result from an extension of specialisation in manufacturing? A for the consumer some prices will be reduced B for the country there will be less dependency…
Answer this question and get it marked →A country imposes a tariff on an imported product. What is the effect of this change? the price of the product increases the quantity of the product imported is fixed --- --- ---…
Answer this question and get it marked →The world demand for oil is price-inelastic and oil is paid for in US dollars. If the price of oil falls rapidly, how might it affect the US dollar? market for US$ exchange rate…
Answer this question and get it marked →Which benefit do multinational companies (MNCs) bring to their home country? A flow of profits B higher wages C increased employment D more investment
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