IGCSE Economics (0987) — May–June 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 →Which of the following is the best reason why there is scarcity in all countries? A There is not enough land to grow food. B Some people are richer than others. C Resources are…
Answer this question and get it marked →Which point on a production possibility curve (PPC) represents the maximum output of two goods that an economy can produce? A A point inside the PPC B A point on the PPC C A point…
Answer this question and get it marked →A government wants to increase the amount of enterprise in an economy. Which policy would be most likely to achieve this aim? A Increase the number of state-owned enterprises B…
Answer this question and get it marked →Which of the following is a macroeconomic issue? A A fall in the price of oil B An increase in income tax rates throughout the economy C A decision by a firm to increase its…
Answer this question and get it marked →The diagram shows the demand for a product. There is an extension in demand. Which movement best shows this? A Movement from P1 to P3 along the demand curve B Movement from P3 to…
Answer this question and get it marked →What is the formula for price elasticity of supply (PES)? A percentage change in price / percentage change in quantity supplied B percentage change in quantity supplied /…
Answer this question and get it marked →What would cause the price elasticity of demand (PED) for a product to be greater than 1? A The product has close substitutes available B The product is a necessity C The product…
Answer this question and get it marked →Governments sometimes provide public goods because markets fail to provide them efficiently. Which best describes why face masks, used to reduce the spread of disease, represent…
Answer this question and get it marked →An increase in consumer income leads to an increase in demand for rice. This causes the price of rice to rise. What describes the change in the supply of rice? A There is a…
Answer this question and get it marked →The government gives a subsidy to bus companies to reduce the price of bus travel. What is this an example of? A A maximum price B A minimum price C A subsidy to correct market…
Answer this question and get it marked →During a period of high inflation, which asset would be the worst store of value? A Cash B A house C Gold D Shares in a company
Answer this question and get it marked →When the rate of interest rises, how does this affect consumer spending and saving? Consumer spending Saving --- --- --- A decreases decreases B decreases increases C increases…
Answer this question and get it marked →Which action would NOT increase the bargaining strength of a trade union? A An increase in union membership B The firm's products being highly profitable C Legislation limiting…
Answer this question and get it marked →Which conditions would attract small firms into a market? Market size Barriers to entry --- --- --- A large high B local low C large low D local high
Answer this question and get it marked →A firm's total cost (TC) curve shows that at 10 units of output the average variable cost (AVC) is $4. What is the average variable cost at 10 units? A $4 B $10 C $14 D $40
Answer this question and get it marked →A firm doubles all its inputs but output only increases by 50%. What does this demonstrate? A Economies of scale B Diseconomies of scale C Constant returns to scale D Diminishing…
Answer this question and get it marked →Which of the following is a macroeconomic aim of government? A Maximising the output of the steel industry B Reducing the price of a particular product C Achieving a 2% inflation…
Answer this question and get it marked →A government wants to use monetary policy to increase employment. Which combination of policies would help achieve this aim? Money supply Rate of interest --- --- --- A decrease…
Answer this question and get it marked →A government wants to encourage saving. Which measure would be most likely to achieve this? A A decrease in indirect taxation B An increase in government spending C A decrease in…
Answer this question and get it marked →The table shows data for a country. Year Government education spending Inflation rate --- --- --- 2021 $50 billion 2% 2022 $48 billion 4% How has real government spending on…
Answer this question and get it marked →A government introduces a tax on a necessity. What type of tax is it and what is its price elasticity of demand? Type of tax PED of necessity --- --- --- A direct elastic B direct…
Answer this question and get it marked →Which of the following best describes structural unemployment? A Unemployment caused by the seasonal nature of certain industries B Unemployment caused by workers moving between…
Answer this question and get it marked →Who benefits most from a period of rapid inflation? A A person on a fixed pension B A landlord who has rented out a property at a fixed rent C A saver who has put money in a bank…
Answer this question and get it marked →What is an advantage of the Human Development Index (HDI) over using GDP per head to measure living standards? A It measures only economic factors B It includes measures of life…
Answer this question and get it marked →What would cause both a country's population to increase and the average age of its population to decrease? A A rise in the birth rate B A fall in the death rate C An increase in…
Answer this question and get it marked →A government wants to promote economic development. Which policy would be least likely to help? A Increasing spending on education and training B Improving the infrastructure of…
Answer this question and get it marked →Which change would most likely reduce international trade in cereals? A An increase in tariffs on cereals B An embargo on cereals imposed by developed economies C A decrease in…
Answer this question and get it marked →A government imposes a quota on imported cars. What is the most likely outcome of this policy? A The total revenue of foreign car producers will increase B The total revenue of…
Answer this question and get it marked →A product costs 500 Argentine pesos (ARS) in Argentina. The exchange rate changes from 1 USD = 20 ARS to 1 USD = 25 ARS. What is the new price of the product in US dollars? A $20…
Answer this question and get it marked →A country has a current account deficit. Which policy would be most likely to reduce this deficit? A Increase consumer spending B Increase infrastructure spending to increase…
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