Economic methodology
1.2What the syllabus asks of you
- economics as a social science
- positive and normative statements (the distinction between facts and value judgements)
- meaning of the term ceteris paribus
- importance of the time period (short run, long run, very long run)
Drill this topic
Every question on Economic methodology, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
31 questions
1May / June 2026 · Paper 11 · Q4Show mark scheme →
AA minimum wage is the correct government policy to increase the incomes of the lowest paid workers.
BA minimum wage is the lowest amount that employers can legally pay their workers.
CIn Pakistan, a minimum wage of 15000 Pakistani rupees per month was set on 1 June 2016.
DSetting the minimum wage rate above the equilibrium will result in an excess supply of workers.
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2May / June 2026 · Paper 12 · Q5Show mark scheme →
AEconomic actions can produce unexpected side effects.
BEconomic thinking is usually based on logical reasoning at the margin.
CThe use of scarce resources to produce a good always has a cost.
DThe value of a good or service involves a purely objective judgement.
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3May / June 2026 · Paper 13 · Q2Show mark scheme →
Anormative | normative | positive
Bpositive | positive | normative
Cnormative | positive | normative
Dpositive | normative | positive
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4Oct / Nov 2025 · Paper 11 · Q1Show mark scheme →
AIndirect taxes are cheap to collect.
BIndirect taxes are taxes on income.
CIndirect taxes are unfair.
DIndirect taxes increase inequality.
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5Oct / Nov 2025 · Paper 12 · Q1Show mark scheme →
AGovernment expenditure is an injection into the circular flow of income.
BGovernment expenditure in India in 2022 was 29% of gross domestic product.
CThe best policy measure to reduce inflation is a reduction in government expenditure.
DThe United States of America is the country with the highest military expenditure.
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6Oct / Nov 2025 · Paper 13 · Q1Show mark scheme →
Apoorest nations have large international debts: normative; richest nations should cancel these debts to reduce poverty: normative
Bpoorest nations have large international debts: normative; richest nations should cancel these debts to reduce poverty: positive
Cpoorest nations have large international debts: positive; richest nations should cancel these debts to reduce poverty: positive
Dpoorest nations have large international debts: positive; richest nations should cancel these debts to reduce poverty: normative
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7May / June 2025 · Paper 11 · Q1Show mark scheme →
AIt will help raise life expectancy.
BIt is likely to improve the welfare of society.
CIt will result in lower spending on other medical services.
DTax revenues generated through improved economic activity will exceed the spending on vaccination.
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8May / June 2025 · Paper 12 · Q1Show mark scheme →
AA statement that is based on fact and can be tested.
BA statement that attempts to influence economic decisions.
CA statement that is subjective and cannot be confirmed.
DAn encouraging economic update in the opinion of the central bank.
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9May / June 2025 · Paper 14 · Q1Show mark scheme →
AIt fails to establish theories of economic behaviour.
BIt is unable to construct models of how an economy might work.
CIt lacks the ability to use and apply mathematics.
DIt is very difficult to undertake laboratory experiments in economics.
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10Feb / March 2025 · Paper 12 · Q2Show mark scheme →
Aindustry X: short run; industry Y: long run
Bindustry X: long run; industry Y: long run
Cindustry X: long run; industry Y: very long run
Dindustry X: very long run; industry Y: very long run
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11Feb / March 2025 · Paper 12 · Q4Show mark scheme →
AOther things did not remain equal.
BThe demand for the good was price inelastic.
CThe real price of the good fell.
DThe time period was the very short run.
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12Oct / Nov 2024 · Paper 11 · Q1Show mark scheme →
AThe annual rate of inflation in Malaysia increased from 2.8% in May 2022 to 3.4%.
BThe annual rate of inflation was 3.4% in Malaysia, lower than the 7.7% annual rate of inflation for Thailand.
CThe Malaysian Central Bank raised interest rates from 2.0% to 2.25% on 6 July 2022.
DThe rise in interest rates in Malaysia in July 2022 is expected to only have a small impact on the rate of inflation.
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13Oct / Nov 2024 · Paper 12 · Q4Show mark scheme →
AAll taxes should be proportional to income.
BA progressive tax is a fair tax.
CGreater equality of income is desirable.
DIncome inequality is decreasing.
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14May / June 2024 · Paper 11 · Q14Show mark scheme →
AAverage incomes have failed to keep pace with price rises during the past year.
BEnergy prices have increased by more than 50% during the past year.
CThe distribution of incomes has become more unfair during the past year.
DThe poorest 10% of households have suffered the greatest fall in average real income during the past year.
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15Feb / March 2024 · Paper 12 · Q2Show mark scheme →
AAggregate demand will increase following a decrease in interest rates.
BA rise in unemployment will decrease inflationary pressures.
CThe incentive to work will rise if benefit payments are reduced.
DUnsustainable economic growth is more harmful to the economy than hyperinflation.
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16Feb / March 2023 · Paper 12 · Q3Show mark scheme →
Anormative / normative
Bnormative / positive
Cpositive / normative
Dpositive / positive
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17Oct / Nov 2022 · Paper 11 · Q3Show mark scheme →
AConsumers were scared of running out of food.
BFarm workers demanded higher wages to cover extra hours worked.
CSupply of foreign food was reduced because of closed borders.
DTransport costs increased by 10%.
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18Oct / Nov 2022 · Paper 12 · Q4Show mark scheme →
AA firm receiving a government subsidy will increase the supply of a good.
BNegative externalities are the most serious market failure.
CA rise in incomes will lead to a rise in demand for normal goods.
DA rise in the additional rate of income tax will decrease the incentive to work.
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19May / June 2022 · Paper 11 · Q2Show mark scheme →
ATo be eligible, individuals must be above the age of 60 and live below the poverty line.
BIn January 2020, eligible individuals aged over 70 received 500 rupees per month.
CIn 2018, the Supreme Court said the government must review pension payments because they are unrealistic.
DIn January 2020, the Indian government announced that it might increase the payment to 1000 rupees per month.
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20May / June 2022 · Paper 12 · Q1Show mark scheme →
Adescribe, better, should, value, emotion
Bbias, objective, ought, opinion, tastes
Ccontestable, is, motive, subjective, moral
Dactual, ethics, fact, was, testable
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21May / June 2022 · Paper 13 · Q2Show mark scheme →
ADirect tax is unfair on the richer households in the UK.
BDirect tax in the UK is a proportional tax.
CPoorer households do not pay enough direct tax in the UK.
DRich households pay more direct tax than poor households in the UK.
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22May / June 2022 · Paper 13 · Q12Show mark scheme →
AChanges in quantity demanded can cause changes in any of the other variables.
BConsumer preferences are always assumed to remain unchanged.
COnly one variable is assumed to change while the others remain the same.
DSeveral variables change simultaneously.
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23Feb / March 2022 · Paper 12 · Q2Show mark scheme →
Afact
Bmarket forces
Copinion
Dprice changes
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24Oct / Nov 2021 · Paper 13 · Q4Show mark scheme →
ALow inflation is preferable to low unemployment as a government aim.
BLow inflation will provide a more stable macro economy.
CThe government must intervene in all markets to improve resource allocation.
DThe government should cut income tax so living standards can improve.
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25May / June 2021 · Paper 11 · Q1Show mark scheme →
AChinese economic growth exceeded US economic growth by 4.5% in 2015 but was 0.7% less than that in India.
BChinese economic growth was more than double that in the US in 2015 but was disappointing compared to that in India.
CEconomic growth in India was better than that of the US.
DEconomic growth in the US was too low in 2015 and economic growth in India was too high.
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26May / June 2021 · Paper 11 · Q4Show mark scheme →
AAll the resources used are of equal quality.
BEverything else remains unchanged.
CThe price mechanism rations scarce goods.
DThe variable under consideration is held constant.
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27May / June 2021 · Paper 12 · Q4Show mark scheme →
ABalancing the budget cannot be more important than reducing inflation.
BMaintaining the real income of pensioners needs to be a priority.
CThe government should increase indirect taxation.
DThe government will not increase direct taxation.
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28May / June 2021 · Paper 13 · Q2Show mark scheme →
AChina has never had a balance of payments surplus.
BHigher interest rates might reduce investment.
CPerfect competition is allocatively efficient.
DWelfare payments should be increased.
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29May / June 2021 · Paper 13 · Q5Show mark scheme →
Athe income of the consumer
Bthe price of other goods
Cthe price of the good
Dthe tastes of the consumer
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30Feb / March 2021 · Paper 12 · Q3Show mark scheme →
Athe ability to change resource allocation
Bthe ability to change the state of technology
Cthe absence of government market intervention
Dthe existence of variable factors of production
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31Feb / March 2021 · Paper 12 · Q4Show mark scheme →
AThe distribution of income and wealth in most western European countries is unequal.
BThe government ought to increase income tax on high earners.
CThere should be more legal rights given to workers to protect their status in the workplace.
DWages of those on low incomes should be increased.
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