Economics Interview-style Questions

Note: Oxford and Cambridge do not publicly release any interview questions because they often reuse questions across application cycles. Below are interview-style questions of suitable difficulty that will help you prepare for your Oxbridge interview.

Question 1

A group of 7 pirates has 100 gold coins. They must decide how to divide the treasure, but must abide by pirate rules:

• The most senior pirate proposes a division

• All pirates vote (including the proposer)

• If 50% or more accept, the proposal passes

• Otherwise, the proposer is thrown overboard and the process repeats

• Pirates are perfectly rational and want to: (1) stay alive, (2) get maximum gold, (3) throw others overboard if possible

What division should the senior pirate propose?

Question 2

Why are branches of Starbucks and McDonald’s so close to each other in cities like London, Tokyo and New York?

Hint: Consider Hotelling’s location model and spatial competition.

Question 3

Would it be feasible to have an economy entirely based on the service sector?

Hint: Consider comparative advantage, international trade, physical goods requirements.

Question 4

Economics predictions routinely fail. Does that cast doubt on the entire subject?

Hint: Consider Lucas critique, complexity, comparison to other sciences.

Question 5

A new country is formed in Africa. They introduce a new currency. How does the international market value what it is worth?

Hint: Consider purchasing power parity, interest rate parity, balance of payments, political stability.

Interview Tips

  • Think out loud: The interviewer will be assessing your ability to think through complex problems. They can only do this if they know your thought process.

  • Be familiar with your syllabus: The interviewer can ask you a question from any topic you have been taught already in your A level/IB syllabus.

  • Practice: There is no better way to prepare than to practice.

For comprehensive guidance, visit our Oxbridge Interview Guide.