O Level Economics 2281 · Topic 3

Microeconomic decision makers: past paper questions

250 real questionsasked in 10 of the last 10 exam series2019–2026usually: Discuss, Explain, Analyse, Identify, Define

Real questions on microeconomic decision makers

The newest 20 of 122 written questions, plus 128 multiple-choice. Open one to see it on the real paper.

2281/21 · May/June 2026 · Q1h[6]
Discuss whether or not Uruguay’s consumers would benefit from more of its markets becoming monopolies. Section B Answer any three questions. Each question is introduced by stimulus material. In your answers you may refer to the material and / or other examples that you have studied.
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2281/21 · May/June 2026 · Q2c[6]
Analyse the influences on workers’ ability to gain a wage rise.
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2281/21 · May/June 2026 · Q3c[6]
Analyse the advantages a car firm may gain from specialising in the production of luxury electric cars.
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2281/21 · May/June 2026 · Q4a[2]
Identify two services that commercial banks provide for their customers.
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2281/21 · May/June 2026 · Q4b[4]
Explain two reasons why a firm may produce in more than one country.
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2281/21 · May/June 2026 · Q4c[6]
Analyse the ways a government could increase its country’s exports.
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2281/21 · May/June 2026 · Q5a[2]
Identify two causes of an increase in the quality of enterprise.
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2281/21 · May/June 2026 · Q5b[4]
Explain two reasons why a person may be prepared to work outside in high temperatures.
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2281/22 · May/June 2026 · Q1g[6]
Discuss whether or not workers would benefit from moving from the public sector to the private sector.
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2281/22 · May/June 2026 · Q2a[2]
Identify two disadvantages of working as a miner.
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2281/22 · May/June 2026 · Q2c[6]
Analyse why an MNC may close a mine in a host country.
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2281/22 · May/June 2026 · Q3b[4]
Explain two reasons why households may save their money in a commercial bank.
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2281/22 · May/June 2026 · Q4d[8]
Discuss whether or not a government should encourage clothes firms to merge.
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2281/22 · May/June 2026 · Q5c[6]
Analyse how a firm could make demand for its products more price-inelastic.
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2281/22 · May/June 2026 · Q5d[8]
Discuss whether or not governments should prevent workers from joining trade unions.
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2281/22 · October/November 2025 · Q2d[8]
Discuss whether or not firms benefit from their workers undertaking training.
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2281/23 · October/November 2025 · Q3d[8]
Discuss whether or not division of labour will benefit workers.
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2281/23 · October/November 2025 · Q5b[4]
Explain two ways a firm could attract skilled workers from another country.
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2281/21 · May/June 2025 · Q1h[6]
Discuss whether or not a growth in the size of firms in Gabon’s textile industry will reduce their average cost of production. Section B Answer any three questions. Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied.
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2281/21 · May/June 2025 · Q3b[4]
Explain two causes of a decrease in enterprise in an economy.
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What examiners said

This was quite well answered. A relatively high proportion of candidates developed points from the source material, making good use of relevant economics. There were some particularly good comments about the effects of increased training, more use of capital and lower unemployment. An example of a strong response: If the training of workers increases, they will be more skilful, effective, and pro...
— Examiner report, October/November 2023, 2281/22 Q1(g) (Cambridge)

Most candidates were able to give a relevant example but not all were able to give a relevant definition and some confusion was shown between a capital and a consumer good.
— Examiner report, October/November 2023, 2281/22 Q2(a) (Cambridge)

As with Question 2(a) most candidates were able to give a relevant example. In this case, it was usually rent. Some candidates, however, provided an imprecise definition of a fixed cost. A number of these stated it is a cost which does not change without recognising that it does not change with output (in the short run).
— Examiner report, October/November 2023, 2281/22 Q3(a) (Cambridge)

Practise this topic

Answer these questions online and get each one marked against the official mark scheme, with what you missed and how to fix it.

Practise microeconomic decision makers

In the syllabus

3.1 Money and banking

money The forms, functions and characteristics of money.
banking The role and importance of central banks and commercial banks for government, producers and consumers.

3.2 Households

the influences on spending, saving and Including income, the rate of interest and confidence borrowing – between different households and over time.

3.3 Workers

factors affecting an individual’s choice of Wage and non-wage factors. occupation.
wage determination The influences of demand and supply, relative bargaining power and government policy, including minimum wage.
reasons for differences in earnings How changes in demand and supply, relative bargaining strengths, discrimination and government policy can all influence differences in earnings between workers whether they are: skilled/unskilled; primary/secondary/tertiary; male/female; private sector/public sector. Definition, drawing and interpretation of diagrams that illustrate the effects of changes in demand and supply in the labour market.
division of labour/specialisation Advantages and disadvantages for workers, firms and the economy.

3.4 Trade unions

definition of a trade union.
the role of trade unions in the economy Including engaging in collective bargaining on wages, working hours and working conditions; protecting employment; and influencing government policy. Factors influencing the strength of trade unions.
the advantages and disadvantages of trade From the viewpoint of workers, firms and the union activity government.

3.5 Firms

classification of firms In terms of primary/secondary/tertiary sectors and private/public sector, and the relative size of firms. Note: detailed knowledge of different types of structure of a firm is not required.
small firms The advantages and disadvantages of small firms, the challenges facing small firms and reasons for their existence.
causes and forms of the growth of firms Internal growth, for example increased market share. External growth, for example mergers.
mergers Examples, advantages and disadvantages of different types of mergers: horizontal, vertical, and conglomerate.
economies and diseconomies of scale How internal and external economies and diseconomies of scale can affect a firm/industry as the scale of production changes.

3.6 Firms and production

demand for factors of production Influences to include demand for the product, the price of different factors of production, their availability and their productivity.
labour-intensive and capital-intensive The reasons for adopting the different forms of production production and their advantages and disadvantages.
production and productivity The difference between, and influences on, production and productivity.

3.7 Firms’ costs, revenue and objectives

definition of costs of production Total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), average variable cost (AVC). Note: marginal cost is not required.
calculation of costs of production Calculation of TC, ATC, FC, VC, AFC and AVC. Definition, drawing and interpretation of diagrams that show how changes in output affect costs of production.
definition of revenue Total revenue (TR) and average revenue (AR). Note: marginal revenue is not required.
calculation of revenue Calculation of TR and AR. The influence of sales on revenue.
objectives of firms Survival, social welfare, profit maximisation and growth.

3.8 Market structure

competitive markets The effect of having a high number of firms on price, quality, choice, profit. Note: the theory of perfect and imperfect competition and diagrams are not required.
monopoly markets Characteristics, advantages and disadvantages of monopoly. Note: diagrams are not required.

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