IGCSE Economics (0455) — May–June 2024, Paper 12

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

Why will scarcity always exist? A There are high costs of production. B There are low levels of education. C There are unlimited resources. D There are unlimited wants.

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Question 2 · 1 mark

A student decides to take up a two-year apprenticeship for which she will earn $10 000 per year. After that, she expects to earn $25 000 per year. She could take an unskilled job…

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Question 3 · 1 mark

The diagram shows a country's production possibility curve (PPC). Which current combination of capital and consumer goods would produce the greatest number of consumer goods in…

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Question 4 · 1 mark

What is not a macroeconomic topic? A the growth in Chinese Gross Domestic Product B the level of Consumer Prices Index inflation in the UK C the level of unemployment in Spain D…

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Question 5 · 1 mark

What is likely to cause an extension in demand for a firm's fruit drink? A a period of hot weather B a reduction in the cost of producing the drink C a rival firm leaving the…

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Question 6 · 1 mark

Supermarkets sell petrol (gas) outside their stores. They reduce the price of petrol below other suppliers to attract more customers to buy goods in the store when they buy more…

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Question 7 · 1 mark

Which statement describes a market in disequilibrium? A Excess demand results from a government maximum price below the equilibrium price. B The point where the demand and supply…

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Question 8 · 1 mark

In response to an increase in price from $5 per kg to $6 per kg, a farmer increased supply from 400 kg to 500 kg per week. What is the price elasticity of supply? A 0.8 B 0.9 C…

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Question 9 · 1 mark

Which government measure is most likely to cause a fall both in price and in quantity traded? A indirect tax B maximum price C minimum price D subsidy

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Question 10 · 1 mark

The diagrams show the wage rates of cleaners (OWc) and nurses (OWn). What is the result if a national minimum wage of OM is introduced? wage rates of cleaners wage rates of nurses…

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Question 11 · 1 mark

What would cause a decrease in spending by households in a country? A a reduction in disposable income B a reduction in the rate of sales tax C lower interest rates D lower savings

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Question 12 · 1 mark

Which combination shows the advantages of a small firm over a larger firm? better communication greater independence lower average cost --- --- --- --- A no no yes B no yes no C…

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Question 13 · 1 mark

What is a variable cost for a firm? A the cost of raw materials B the interest payment on existing loans C the rent on the factory D the insurance on the factory buildings

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Question 14 · 1 mark

The table shows the daily average revenue and units of output sold for a firm producing bicycles over a five day period. day average revenue ($) units of output sold --- --- --- 1…

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Question 15 · 1 mark

Which function of money acts as a measure of value? A a medium of exchange B a standard of deferred payment C a store of wealth D a unit of account

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Question 16 · 1 mark

What are the features of a highly competitive market when compared with a monopoly market? price profit --- --- --- A higher higher B higher lower C lower higher D lower lower

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Question 17 · 1 mark

What is not a role of central government in a mixed economy? A providing demerit goods B providing merit goods C providing public goods D stabilising the economy

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Question 18 · 1 mark

A government wishes to prevent deflation. Which combination of policies would be the most effective in achieving this aim? interest rate government spending --- --- --- A increase…

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Question 19 · 1 mark

The diagram shows the impact of a tax introduced on a product. Which area represents the amount of tax paid by the consumer? A HP1FG B HP2EG C OP2EQ2 D P1P2EF

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Question 20 · 1 mark

Which statement about supply-side policy is correct? A It aims to increase the productive potential of the economy. B It aims to increase total demand in the economy. C It…

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Question 21 · 1 mark

Which change is most likely to cause faster economic growth in the short run? A an increase in net emigration B an increase in the birth rate C an increase in the death rate D an…

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Question 22 · 1 mark

How is the pattern of employment likely to change when a country becomes more developed? A from rural employment to urban employment B from skilled employment to primary…

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Question 23 · 1 mark

Which item is least likely to be included in the Consumer Prices Index (CPI)? A domestic cooking oil B homemade clothes C milk D personal mobile phones

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Question 24 · 1 mark

The table shows statistics for four countries A, B, C and D. According to the data provided, which country has the lowest standard of living? average years of schooling life…

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Question 25 · 1 mark

Economic development in country X has progressed at a greater rate than in country Y. What is the most likely explanation of this difference in economic development between…

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Question 26 · 1 mark

A rise in which factor would cause an increase in the population growth rate of a country? A birth rate B death rate C infant mortality rate D net emigration

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Question 27 · 1 mark

The diagram shows the market for an imported good with equilibrium at point X. The country imposes a tariff on this good. Is the new equilibrium at point A, B, C or D? A point A B…

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Question 28 · 1 mark

The diagram shows the market for the Chinese yuan (¥) priced in US dollars ($). What could have caused the change in demand for the yuan from D1 to D2? A a decrease in foreign…

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Question 29 · 1 mark

The table shows the average exchange rate of the UK pound (£) to the US dollar ($), that is the amount of $ that can be bought with £1. year exchange rate UK£ / US$ --- --- 1 1.64…

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Question 30 · 1 mark

The table shows components of Japan's current account balance in trillion yen (¥) for 2 years. year balance of goods ¥ trillion balance of services ¥ trillion balance of primary…

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