Price determination: past paper questions
Real questions on price determination
The newest 10 of 10 written questions. Open one to see it on the real paper.
- 2281/21 · May/June 2025 · Q3d[8]
Discuss whether or not a rise in a national minimum wage will harm an economy.
See it on the paper → - 2281/23 · October/November 2024 · Q1g[6]
Discuss whether or not the construction of electric vehicle charging stations would benefit an economy.
See it on the paper → - 2281/23 · October/November 2023 · Q2d[8]
Discuss whether or not imposing tariffs on imports will increase a country’s output.
See it on the paper → - 2281/23 · October/November 2022 · Q3a[2]
Define, with an example, an indirect tax.
See it on the paper → - 2281/21 · May/June 2022 · Q3b[4]
Explain two ways a government could decrease the consumption of demerit goods.
See it on the paper → - 2281/23 · October/November 2021 · Q2c[6]
Analyse how the price mechanism answers the three key resource allocation questions.
See it on the paper → - 2281/23 · October/November 2020 · Q1a[1]
Calculate the external cost per kilometre of driving a car in Manila in 2017.
See it on the paper → - 2281/23 · October/November 2020 · Q1f[5]
Analyse the relationship between the countries’ consumer expenditure and imports. (f)
See it on the paper → - 2281/21 · May/June 2020 · Q3c[6]
Analyse, using a demand and supply diagram, how a rise in income may affect the market for gold.
See it on the paper → - 2281/22 · May/June 2019 · Q3b[4]
Explain how market forces will eliminate a surplus and a shortage.
See it on the paper →
What examiners said
This question was generally answered well. Most candidates were able to explain how imposing tariffs led to an increase in the price of imports and fewer imports with domestic firms, increasing output as consumers switched demand. They also included comments such as domestic goods were now cheaper, especially if using imported raw materials. Strong answers also made reference to governments using...
— Examiner report, October/November 2023, 2281/23 Q2(d) (Cambridge)
A common correct answer was to state that an indirect was a tax on goods and services and to give an example e.g. sales tax or VAT. A few wrongly described the features of a direct tax e.g. income tax. Quite a few candidates gave as their chief characteristic that an indirect tax was one simply passed on to a third party without explaining how. Others stated that it was regressive in nature, but t...
— Examiner report, October/November 2022, 2281/23 Q3(a) (Cambridge)
Candidates showed a good understanding of what was a demerit good. Good answers explained two ways of reducing consumption such as tax on the good making it more expensive and less affordable to buy and a government advertising campaign to provide information on the harmful effects of consuming the good. Weaker answers tended to identify a way without explaining the impact, e.g., ‘government shoul...
— Examiner report, May/June 2022, 2281/21 Q3(b) (Cambridge)
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