IGCSE Economics (0987) — May–June 2025, Paper 12
30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.
Start with Question 1 →A university rejects 2000 qualified applicants who wish to study there. Which factor of production could have caused the university to make this decision? A infinite quantity of…
Answer this question and get it marked →Sanjay, a coal miner, became unemployed when the only local mine closed. He lives in a village near family and friends and would like to stay in the same village. What is the…
Answer this question and get it marked →The diagram shows the production possibility curve (PPC) for an economy that is at point X. The vertical axis is output of capital goods and the horizontal axis is output of…
Answer this question and get it marked →What are both macroeconomic decisions? decision 1 decision 2 --- --- --- A a school recruits more teachers a firm sets the prices for its products B a central bank reduces money…
Answer this question and get it marked →The table shows the quantity of coffee demanded per day and the quantity supplied per day. price ($) per kilo demand (kilos) supply (kilos) --- --- --- 12 16 26 11 18 23 10 20 20…
Answer this question and get it marked →The diagrams show the demand curves for the only two buyers in a market. The first buyer's demand curve is a single straight downward-sloping line. The second buyer's demand curve…
Answer this question and get it marked →The diagram shows the market for ice cream and the effects of very hot weather. Demand shifts to the right from D1 to D2 along an upward-sloping supply curve S1; the equilibrium…
Answer this question and get it marked →The supply of which good is likely to be most price elastic? the good is easily stored time taken to produce the good --- --- --- A no one day B no one year C yes one day D yes…
Answer this question and get it marked →What is a characteristic of a demerit good? A it is more beneficial to the consumer than they realise B it is overconsumed in the free market C it is underproduced in the free…
Answer this question and get it marked →The table shows the average wage in four countries, A, B, C and D. In which country is there the greatest relative wage discrimination against female employees? male $ female $…
Answer this question and get it marked →The diagram shows the average total cost curve (ATC) for a firm after a merger. The ATC curve is U-shaped; point X is near the bottom of the curve and point Y is slightly to the…
Answer this question and get it marked →A restaurant employs two chefs who make all of the meals that are served to customers. What is most likely to increase the productivity of the chefs? A a decrease in the number of…
Answer this question and get it marked →What are fixed costs? A costs that are divided by the amount produced B costs that are present when output is zero C costs that change according to the level of output D costs…
Answer this question and get it marked →The table shows the daily output and costs of four firms making chairs. Which firm has the highest average cost of production? output (units) fixed costs ($) variable costs ($)…
Answer this question and get it marked →The only information known about a firm is the price it charges for its product and the quantity it sells. What else can be concluded from this? A its average cost and profit B…
Answer this question and get it marked →If a very competitive market becomes a monopoly, what will be likely to increase and what will be likely to decrease? increase decrease --- --- --- A barriers to entry economies…
Answer this question and get it marked →Many central banks around the world decreased interest rates during a recession caused by a pandemic. What was the most likely macroeconomic aim of this policy? A economic growth…
Answer this question and get it marked →The diagram shows the percentage of income taken by a tax at different levels of income. The line labelled 'tax' slopes downwards: as income increases, the percentage paid in tax…
Answer this question and get it marked →What is not a likely consequence of a rise in the budget deficit in a year? A a rise in government borrowing B a rise in the level of exports C a rise in the national debt D a…
Answer this question and get it marked →When a government aims to encourage economic growth, it may adopt supply-side policies. Which policy is a supply-side policy? A increasing the money supply B lowering interest…
Answer this question and get it marked →An economy that is fully employed is forecast to have an increase in total demand. What is most likely to increase? A the rate of absolute poverty B the government budget deficit…
Answer this question and get it marked →A government conducted a labour force survey. It only included people of working age in the survey. The results are shown in the table. number of people --- --- of working age 10…
Answer this question and get it marked →A school leaver is unable to find a job immediately after completing their education. Which type of unemployment is this? A cyclical B frictional C regional D structural
Answer this question and get it marked →Which changes are likely to lead to the biggest increase in inflation in country X? demand for goods and services in country X supply of goods and services in country X --- ---…
Answer this question and get it marked →In rural areas in developing countries, farmers grow food for their own consumption. Why might this mean that the GDP is a weak measure of the standard of living in those…
Answer this question and get it marked →Japan's population has an increasing proportion of elderly people. What is the likely impact of this on the Japanese economy? A increased government budget deficit B increased…
Answer this question and get it marked →An Argentine product initially sells in the US for $50 when the exchange rate between the two countries is 5 pesos to 1 dollar ($). The exchange rate changes to 10 pesos to 1…
Answer this question and get it marked →Mining by multinational companies (MNCs) has both costs and benefits for the host nation. Which activity is least likely to offer a benefit to the host nation? A developing…
Answer this question and get it marked →The table shows the retail price at which the same book can be bought in four countries. country price in local currency local currency --- --- --- Australia $14.99 Australian…
Answer this question and get it marked →What is a consequence of a surplus on the current account of the balance of payments? A a decrease in GDP B a decrease in unemployment C a depreciation of the foreign exchange…
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