IGCSE Economics (0455) — October–November 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

A consumer has $10 to spend. A meal costs $9 and a drink costs $5. What would describe the situation if the consumer did not have enough money to purchase both the meal and the…

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Question 2 · 1 mark

The diagram shows a production possibility curve (PPC) for a country. The country moved from position X to position Y on the PPC. What is the most likely reason for this change? A…

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Question 3 · 1 mark

Which type of factor of production is a railway track? A capital B enterprise C labour D land

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Question 4 · 1 mark

Which statement must be correct if a market is in disequilibrium? A Quantity demanded and quantity supplied are equal. B The government must intervene if anything is to be sold. C…

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Question 5 · 1 mark

What is a determinant of price elasticity of demand (PED)? A availability of stocks of the product B change in the income of consumers C degree of necessity of the product D…

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Question 6 · 1 mark

What would cause the supply curve for an agricultural product to shift to the right? A an increase in the costs of production B an increase in the price of substitutes C an…

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Question 7 · 1 mark

What would increase the price elasticity of supply (PES) of a product? A an increase in the cost of inputs B an increase in the firm's profits C an increase in the number of close…

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Question 8 · 1 mark

The diagram shows a demand curve. What does the movement from X to Y show? A a decrease in quantity demanded due to an increase in price B a decrease in quantity demanded due to…

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Question 9 · 1 mark

In a market there is a surplus of a good. Which change would cause the market to come to an equilibrium? A a decrease in demand B a fall in price C a rise in price D an increase…

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Question 10 · 1 mark

When the price of a good is $10, the quantity demanded is 100 units per day. Which combination of price change and price elasticity of demand will cause the largest increase in…

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Question 11 · 1 mark

A function of money is to act as a measure of value. What does this mean? A It is used for future savings. B It is used to compare the worth of different goods. C It is used to…

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Question 12 · 1 mark

In 2008–2009 the central bank of a developed country reduced interest rates from 5% to 0.5% per year to stimulate the economy. How would this policy have affected the amount saved…

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Question 13 · 1 mark

Many small energy providers have closed down due to rising costs. What is the likely effect of this on the price of energy and choice of energy providers for consumers, assuming…

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Question 14 · 1 mark

What is the most likely goal of a state-owned enterprise providing health services? A profits B public satisfaction C sales revenue D survival

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Question 15 · 1 mark

Some governments allow monopoly markets to exist. What is a reason for this? A to attract entry into the market B to fund research and development C to increase prices for…

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Question 16 · 1 mark

The table shows the costs incurred by a firm producing computers. output (thousands) total costs ($ thousands) --- --- 0 20 1 1200 2 1350 3 1450 What are the fixed costs if 3000…

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Question 17 · 1 mark

A government increases its revenue by higher direct taxation of both personal incomes and company profits. What is most likely to be the reason for this increase? A to control…

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Question 18 · 1 mark

Income tax in a country gives all individuals an initial tax-free income allowance. Any income above this allowance is taxed at increasing rates as the incomes of individuals…

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Question 19 · 1 mark

A government lowers the rate of interest. Who is most likely to be disadvantaged by this policy? A house buyers B manufacturers C retailers D savers

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Question 20 · 1 mark

What is a supply-side policy measure? A a tariff on imported goods B an increase in indirect taxes C a contractionary monetary policy D the removal of barriers to entry to a market

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Question 21 · 1 mark

What is the most likely consequence of economic growth? A more equal income distribution B more use of resources C reduced imports D reduced tax revenue

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Question 22 · 1 mark

In high-income economies, cereal farming is highly productive but few workers are employed. What could have caused this employment situation? A a fall in world demand for cereals…

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Question 23 · 1 mark

Who is most likely to benefit during a period of inflation? A creditors (lenders) B debtors (borrowers) C fixed income earners D holders of cash

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Question 24 · 1 mark

The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicator? first indicator second indicator ---…

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Question 25 · 1 mark

Which combination would be most likely to increase the population of a country? birth rates death rates net immigration --- --- --- --- A high high positive B high low positive C…

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Question 26 · 1 mark

Which economic consequence is most likely to result from an increasing proportion of the population being over the age of 65? A Government transfer payments will increase. B More…

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Question 27 · 1 mark

What is most likely to encourage international specialisation? A similarities in climate in different countries B the ability to produce products more cheaply than other countries…

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Question 28 · 1 mark

Country X established free trade agreements with other nations. What would be the intended benefit of such agreements to country X? A increased labour shortages B increased tariff…

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Question 29 · 1 mark

A country's foreign exchange rate appreciates significantly. Which group in the country will directly benefit from this change? A a government department which only buys locally…

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Question 30 · 1 mark

What is measured in the secondary income balance in a country's current account of the balance of payments? A net contributions to international and regional organisations B net…

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