IGCSE Economics (0455) — May–June 2024, 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

How can the economic problem be described? A as insufficient capital to satisfy our wants B as insufficient income to satisfy all our needs C as insufficient resources to satisfy…

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Question 2 · 1 mark

What would be included in the factor of production land? A bread B factory building C sports arena D wheat

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Question 3 · 1 mark

A deposit of shale oil is discovered in an area of farming. The following estimates are made for a ten-year period. - If the land is used only for farming, it would yield income…

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Question 4 · 1 mark

What three key questions determine resource allocation? A what, how, for whom B what, when, for whom C where, what, how D where, how, for whom

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Question 5 · 1 mark

In the diagram, X represents the original equilibrium point in the labour market for engineers. An increase in the skills of engineers results in an increase in productivity.…

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Question 6 · 1 mark

An explosion in an important oil pipeline causes the world price of a barrel of oil to increase from $50 to $100. Before the explosion, the world demand for oil was 100 million…

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Question 7 · 1 mark

What is included in the study of microeconomics? A demand-pull inflation B diseconomies of scale C increasing unemployment D the size of the budget deficit

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Question 8 · 1 mark

The price elasticity of supply (PES) of a product is 1.0. The price of this product is $10 and the quantity supplied is 200 units. If the price of the product increases to $11, by…

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Question 9 · 1 mark

The government wishes to reduce the harmful emissions from road transport. Which measure would be effective in helping to achieve this aim? A increased expenditure on oil…

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Question 10 · 1 mark

What function does a central bank provide for an economy? A It issues bank notes to encourage spending. B It manages the debt of private sector firms. C It offers high interest…

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Question 11 · 1 mark

A firm changes from producing individual pieces of wooden furniture by hand to a mechanised production process using the division of labour. What is the most likely set of…

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Question 12 · 1 mark

What is the best definition of a trade union? A a group of countries that negotiates trade agreements B a group of firms that negotiates removing obstacles to trade C a group of…

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Question 13 · 1 mark

What is most likely to be a disadvantage when operating a small firm? A a lack of external economies of scale B a lack of external diseconomies of scale C a lack of internal…

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Question 14 · 1 mark

A firm increased output from Q1 to Q2 and achieved economies of scale. How is this shown on the firm's average total cost curve (ATC)? A diagram A B diagram B C diagram C D…

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Question 15 · 1 mark

A busy restaurant employs a large number of highly skilled chefs to individually prepare high quality meals. What is an advantage to the restaurant of this type of production? A A…

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Question 16 · 1 mark

How is the average cost of a product calculated? A by adding total variable and total fixed costs B by dividing total cost by output C by multiplying total variable cost by output…

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Question 17 · 1 mark

Why might measures to reduce unemployment also make inflation rise? A They encourage cheap imports. B They increase demand. C They reduce firms' costs. D They require wages to…

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Question 18 · 1 mark

The diagram shows selected areas of government spending for a country. area of spending amount --- --- national defence $32.2bn education $36.4bn health $81.8bn unemployment…

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Question 19 · 1 mark

What correctly explains the effect of monetary policy measures on macroeconomic aims? A A higher exchange rate will make imports more expensive and improve the balance of…

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Question 20 · 1 mark

What is the most likely impact of lower direct taxes on demand and on supply? demand supply --- --- --- A decrease decrease B decrease increase C increase increase D increase…

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Question 21 · 1 mark

The table shows the annual change in Gross Domestic Product (GDP) before adjustments for inflation have been made and the annual rate of inflation in four countries. Which country…

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Question 22 · 1 mark

Which type of unemployment is generally regarded by economists as the least serious for the economy? A cyclical B frictional C regional D structural

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Question 23 · 1 mark

The Consumer Prices Index (CPI) for a country rose during one year from 125 to 150. What was the country's rate of inflation? A 20% B 25% C 125% D 150%

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Question 24 · 1 mark

What does the Human Development Index (HDI) indicate? A economic development B level of unemployment C living standards D rate of inflation

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Question 25 · 1 mark

What best describes relative poverty? A A 12-year-old boy has never been able to access a doctor or school. B A person earns less than the minimum defined level of income. C A…

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Question 26 · 1 mark

The table shows population statistics for three countries in a particular year. country population size (millions) birth rate (per thousand of population per year) death rate (per…

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Question 27 · 1 mark

What is most likely to promote international specialisation? A similarities in climate in different countries B similarities in the availability of natural resources in different…

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Question 28 · 1 mark

What are the effects on price and equilibrium quantity of the imposition of an import tariff on a good? price equilibrium quantity --- --- --- A decreases decreases B decreases…

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Question 29 · 1 mark

The diagram shows the market for the Indian rupee in US$. What will cause the demand curve for rupees to shift from D1 to D2? A a fall in Indian exports to the US B a fall in the…

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Question 30 · 1 mark

The diagram shows China's trade with Brazil for two years. What happened to China's trade balance with Brazil between year 1 and year 2? A It experienced a falling surplus. B It…

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