IGCSE Economics (0987) — May–June 2023, Paper 12
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →Which statement best explains why scarcity exists? A People are greedy and want more than they need B Resources are unevenly distributed around the world C Governments fail to…
Answer this question and get it marked →A production possibility curve (PPC) shows the maximum combination of two goods an economy can produce. Which statements about a PPC are correct? Statement --- --- 1 Points inside…
Answer this question and get it marked →A student decides to go to university instead of taking a job. What is the opportunity cost of going to university? A The cost of tuition fees B The experience gained at…
Answer this question and get it marked →Which of the following is a macroeconomic concept? A The output of a single firm B The wage rate in one industry C The real GDP of a country D The price of a specific product
Answer this question and get it marked →The diagram shows the demand curve for a product in year X. In year Y demand has increased. Which statement correctly describes what has happened? A At every price, consumers are…
Answer this question and get it marked →A firm sells a product. When its price rises, consumers spend more on the product in total. What does this show about the price elasticity of demand (PED) for the product? A PED…
Answer this question and get it marked →What would motivate a producer to increase the supply of a product? A Higher prices lead to greater profits B Higher prices lead to lower profits C Lower prices lead to greater…
Answer this question and get it marked →Graduates with university degrees typically earn higher wages. What is an external benefit of higher education? A Higher wages for graduates B Graduates paying more tax revenue to…
Answer this question and get it marked →Consumer incomes rise. This causes the demand for rice to increase, which raises the price of rice. What happens to the quantity of rice supplied? A Supply shifts to the left B…
Answer this question and get it marked →A government sets a maximum price below the equilibrium price for a product. What is this type of government intervention called? A A subsidy B A minimum wage C A maximum price…
Answer this question and get it marked →Which function of money is being used when someone keeps savings in a bank account? A Medium of exchange B Unit of account C Store of value D Standard of deferred payment
Answer this question and get it marked →Which function of money allows people to compare the value of different goods and services? A Store of value B Medium of exchange C Standard of deferred payment D Unit of account…
Answer this question and get it marked →Workers receive training that makes them more productive. What is the most likely effect on wages? A Wages fall because firms have to pay for training B Wages rise because of…
Answer this question and get it marked →A firm pays a fixed monthly charge for renting office space. What type of cost is this rent? A Average cost B Marginal cost C Variable cost D Fixed cost
Answer this question and get it marked →What is the best definition of a firm's revenue? A The money received from selling goods and services B The profit made after all costs are deducted C The total value of a firm's…
Answer this question and get it marked →Two firms in the same industry merge to form one larger firm. Which of the following is a potential disadvantage of this merger? A The merged firm will face more competition B…
Answer this question and get it marked →A government wants to reduce its budget deficit. Which combination of policies would help achieve this? A Increase government spending and reduce taxes B Reduce government…
Answer this question and get it marked →A government wants to increase the consumption of a merit good. Which policy would be most effective? A Impose a tax on the merit good B Provide a subsidy for the merit good C Set…
Answer this question and get it marked →A person took out a loan to buy a house. What is the main purpose of a mortgage or home loan? A Earning interest on savings B Investing in financial assets C Paying for goods and…
Answer this question and get it marked →A government invests heavily in education and training. What is the most likely macroeconomic benefit of this investment? A A decrease in government expenditure B A reduction in…
Answer this question and get it marked →Which of the following is evidence that a country has achieved economic growth? A An increase in the population B A fall in the unemployment rate C An increase in real GDP D A…
Answer this question and get it marked →A government with a progressive income tax system experiences economic growth. What is the most likely effect on tax revenue? A Tax revenue falls as incomes rise B Tax revenue…
Answer this question and get it marked →The table shows the annual rate of inflation in a country. Year Inflation rate --- --- 2005 2% 2006 3% 2007 5% 2008 4% 2009 2% In which period did the price level fall? A…
Answer this question and get it marked →What would happen to the birth rate and the death rate if a country's standard of living improves? Birth rate Death rate --- --- --- A both increase both increase B birth rate…
Answer this question and get it marked →Which of the following would be a sign of economic progress in a developing country? A A rise in the proportion of the population employed in subsistence farming B A rise in the…
Answer this question and get it marked →Which factor has NOT contributed to the decline of manufacturing industry in developed countries? A Higher wages in developed countries compared to developing countries B The…
Answer this question and get it marked →Country X has the following balance of payments data (in $m): Exports of goods: 200 Imports of goods: 190 Exports of services: 35 Imports of services: 38 What is the balance on…
Answer this question and get it marked →Country X believes country Y is selling goods in country X at prices below the cost of production. What measure could country X use to protect its domestic producers? A…
Answer this question and get it marked →Country X's currency appreciates in value. What is the most likely effect on exports from country X? A A decrease in the volume of exports because export prices have fallen in…
Answer this question and get it marked →A government wants to reduce a current account deficit. Which policy would be most likely to worsen the deficit? A Lowering import quotas B Devaluing the exchange rate C Reducing…
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