Original, AI-authored English practice with worked guidance. Selected topics only; independent teacher review is pending. This is not a complete syllabus, official past-paper collection or predicted exam score. Check your own exam-board specification: these concepts are not certified against a particular board or exam year.
72 original questions across 13 selected topic areas. No account or payment required to practise.
7 questions in this topic. Exact English revisions checked in an AI-assisted academic review; independent teacher approval is still pending.
All topics
Original targeted practice for selected 2027 content; indicative answers, not complete syllabus coverage or teacher approval.
Selected subtopics: Information and goods · Elasticities and surplus · Utility and budgets
7 of 7 questions shown
Write a response before opening the indicative guidance. Responses are not saved if you leave or reload this page.
Question 1Fictional discussion: 'Training raised output per worker by 8%' and 'Government should give training priority over parks'. Distinguish the statements and distinguish trained skills from the workshop building as productive inputs.4 indicative marks
Analyse / Explain4 indicative marksNo calculator
Fictional discussion: 'Training raised output per worker by 8%' and 'Government should give training priority over parks'. Distinguish the statements and distinguish trained skills from the workshop building as productive inputs.
Cambridge 2027: Direct conceptual match
Checked positive/normative distinction, human/physical capital and opportunity cost against1.2.2/1.3.2/1.1.3; no claim the invented8% is real evidence.
Whether the 8% claim is true is separate from whether it is a testable positive claim. Evidence about productivity cannot by itself settle the relative value of parks. Skills reside in workers; buildings are produced means of production. Compare the next-best benefit sacrificed under the budget constraint.
Self-marking points
The 8% statement is positive: evidence can test its factual claim.
The priority statement is normative: it contains a value judgement even if evidence informs it.
Workers' acquired skills are human capital; the produced workshop is physical capital.
Prioritising training has an opportunity cost in forgone park benefits, not merely the money paid.
Examiner tip
Positive does not mean desirable or proven true.
Question 2Fictional market: buyers underestimate the later health costs of an addictive drink. Explain why it may be a demerit good even if no third party is harmed, and compare an information campaign with a tax.4 indicative marks
Analyse / Explain4 indicative marksNo calculator
Fictional market: buyers underestimate the later health costs of an addictive drink. Explain why it may be a demerit good even if no third party is harmed, and compare an information campaign with a tax.
Cambridge 2027: Direct conceptual match
Checked imperfect-information rather than third-party-cost definition and compared the specified intervention mechanisms.
The stated failure concerns buyers' own underestimated consequences. Keep it distinct from production pollution. Information can change perceived benefits/costs; taxation changes incentives even when perceptions persist. A conditional policy judgement should depend on response and information quality.
Self-marking points
Imperfect information can make consumption exceed the informed private optimum.
A demerit classification here does not require an external cost to another person.
Information targets misperception but may be ignored or poorly understood.
A tax raises the buyer's price but can burden informed low-income buyers and need not correct their understanding.
Examiner tip
Merit/demerit goods and externalities are related but not interchangeable concepts.
Question 3Fictional data with other determinants fixed: a price rises10% and supply increases20%. Separately, income rises8% and demand for a staple falls4% at unchanged prices. Calculate PES and YED and interpret both.4 indicative marks
Fictional data with other determinants fixed: a price rises10% and supply increases20%. Separately, income rises8% and demand for a staple falls4% at unchanged prices. Calculate PES and YED and interpret both.
Cambridge 2027: Direct conceptual match
Independently recalculated2 and-0.5; controls separate supply response from an income-demand shift.
Use percentage responses, not the raw change in units. PES divides supplied quantity change by own-price change; YED divides demanded quantity change by income change. The latter's sign identifies inferior versus normal under the stated controls. Neither coefficient is a profit margin.
Self-marking points
PES=20/10=2.
Supply is elastic over the stated change; output responds proportionately more than price.
YED=-4/8=-0.5.
The negative income response classifies this staple as inferior over these observations, not necessarily for all incomes.
Examiner tip
Do not use the quantity supplied in an income-elasticity calculation.
Question 4Fictional competitive market has inverse demand P=30-Q and inverse supply P=10+Q. Find equilibrium, consumer surplus and producer surplus. Assume continuous units and straight lines.4 indicative marks
Fictional competitive market has inverse demand P=30-Q and inverse supply P=10+Q. Find equilibrium, consumer surplus and producer surplus. Assume continuous units and straight lines.
Cambridge 2027: Direct conceptual match
Solved equilibrium by substitution and independently integrated the two triangles to50 each.
Demand intercept is30 and supply intercept10. At quantity10, both schedules give20. Consumer gains lie above20 below demand; producer gains lie below20 above supply. Revenue is200, which is distinct from either50 surplus.
Self-marking points
30-Q=10+Q gives Q=10 and P=20.
Consumer surplus=(30-20)*10/2=50 currency units.
Producer surplus=(20-10)*10/2=50 currency units.
Each is a triangular area between the transaction price and the relevant willingness-to-pay or supply curve, not total revenue.
Examiner tip
Use the price-axis height and divide the triangular area by two.
Question 5Fictional economy: GDP at market prices=1000 million; net primary income from abroad=-40 million; depreciation=60 million; taxes on products=80 million and subsidies on products=20 million. Calculate GNI, NNI and GDP at basic prices.4 indicative marks
Fictional economy: GDP at market prices=1000 million; net primary income from abroad=-40 million; depreciation=60 million; taxes on products=80 million and subsidies on products=20 million. Calculate GNI, NNI and GDP at basic prices.
Cambridge 2027: Direct conceptual match
Verified960,900,940 and distinct definitions under4.1.2-4.1.4.
Perform each conversion on its own stated base. National income includes residents' net primary income from abroad, even if it is negative. Depreciation is capital consumed in production. Basic-price valuation removes product taxes and adds product subsidies; do not subtract the foreign-income item from GDP merely to change its price basis.
Self-marking points
GNI=1000-40=960 million.
NNI=960-60=900 million.
GDP at basic prices=1000-80+20=940 million.
Foreign primary income adjusts domestic to national income; depreciation adjusts gross to net, while product taxes/subsidies adjust valuation.
Examiner tip
Domestic/national, gross/net and market/basic prices are separate distinctions.
Question 6Fictional consumer has budget4, price of X=2 and price of Y=1. Marginal utilities for successive X are12,8; for successive Y they are8,6,4,2. Goods are indivisible and utilities additive. Compare all ways to spend the entire budget and choose the highest-utility bundle.4 indicative marks
Fictional consumer has budget4, price of X=2 and price of Y=1. Marginal utilities for successive X are12,8; for successive Y they are8,6,4,2. Goods are indivisible and utilities additive. Compare all ways to spend the entire budget and choose the highest-utility bundle.
A whole X uses two budget units, so the only exhaust-budget bundles are(0,4),(1,2),(2,0). Add marginal increments to obtain total utility; do not multiply the last marginal utility by all units. Comparing20,26,20 proves the optimum in the finite set. The equal-last-utility-per-price observation is consistent here, not an unrestricted integer-optimisation rule.
Self-marking points
X=0,Y=4 gives utility8+6+4+2=20.
X=1,Y=2 gives utility12+8+6=26.
X=2,Y=0 gives utility12+8=20.
Choose1X and2Y; the last purchased X and Y each give6 utility per currency unit in this example.
Examiner tip
Marginal utility is an increment, not total satisfaction from all units.
Question 7Fictional consumer can buy divisible X and Y with income10, prices PX=2,PY=1. Draw or describe the budget line with X horizontal. PX then falls to1, income unchanged. Give both intercepts before/after and distinguish substitution and income effects for a normal X.4 indicative marks
Fictional consumer can buy divisible X and Y with income10, prices PX=2,PY=1. Draw or describe the budget line with X horizontal. PX then falls to1, income unchanged. Give both intercepts before/after and distinguish substitution and income effects for a normal X.
Cambridge 2027: Direct conceptual match
Checked intercepts5/10 then10/10 and separated relative-price substitution from purchasing-power effect without inventing indifference curves.
Set Y=0 and X=0 to obtain intercepts. A price change rotates rather than parallel-shifts the budget constraint. Separate compensated substitution from increased purchasing power. For a normal good both favour more X, but no quantity choice can be calculated without preference information.
Self-marking points
Initially2X+Y=10, with X intercept5 and Y intercept10.
Afterward X+Y=10, with X intercept10 and Y intercept10; the line pivots outward about the Y intercept.
The substitution effect favours the relatively cheaper X holding real purchasing power appropriately constant.
The real-income gain also raises X demand if X is normal; an inferior good can have an opposing income effect.
Examiner tip
Do not infer a chosen bundle from budget intercepts alone.
