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100+ Free IGCSE Economics Practice Questions

Pass your Cambridge IGCSE Economics (0455) exam on the first try — instant access, no signup required.

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Demand-pull inflation is caused by:

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B
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Key Facts: IGCSE Economics Exam

A*-G

Grading scale

Cambridge International

2 papers

Assessment route (multiple choice + structured)

Cambridge 0455 syllabus 2026-2027

120 marks

Total across the two papers (30 + 90)

Cambridge 0455 syllabus

100

Free practice questions here

OpenExamPrep

Cambridge IGCSE 0455 Economics runs on the 2026-2027 syllabus. All candidates take Paper 1 (30 multiple choice, 30%) and Paper 2 (structured questions including data response and an essay-style question, 70%). There is no Core/Extended split — every candidate sits the same two papers, graded A*-G.

Sample IGCSE Economics Practice Questions

Try these sample questions to test your IGCSE Economics exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the basic economic problem?
A.Pollution caused by production
B.Unlimited wants and limited (scarce) resources
C.Inflation caused by rising prices
D.Unemployment caused by recessions
Explanation: The basic economic problem is scarcity: human wants are unlimited, but the resources (factors of production) available to satisfy them are limited. This forces every economic agent to make choices about how to allocate resources.
2A student gives up a Saturday job paying $40 to attend a free concert. What is the opportunity cost of attending the concert?
A.Zero, because the concert is free
B.The $40 wage forgone
C.The cost of transport to the concert
D.The price of a concert ticket
Explanation: Opportunity cost is the value of the next-best alternative forgone. By choosing the concert instead of working, the student gives up $40 of wages, so that is the opportunity cost of the decision.
3Which of the following is classified as the factor of production 'capital'?
A.A bank deposit of $10,000
B.A farm worker picking apples
C.A factory machine used to make cars
D.Crude oil under the ground
Explanation: In economics, capital refers to man-made goods used to produce other goods and services — machinery, factories, tools and equipment. A factory machine fits this definition.
4Which factor reward is correctly matched with its factor of production?
A.Labour - profit
B.Enterprise - wages
C.Capital - interest
D.Land - wages
Explanation: Each factor of production earns a specific reward: land earns rent, labour earns wages, capital earns interest, and enterprise earns profit. Capital paired with interest is therefore the correct match.
5A production possibility curve (PPC) shifts outwards. Which event most likely caused this?
A.A fall in consumer demand for one of the goods
B.An increase in the labour force following migration
C.A rise in the price level (inflation)
D.An increase in unemployment
Explanation: The PPC shifts outwards when productive capacity rises — typically through more resources or better technology. An increase in the labour force adds to available labour, expanding the maximum possible output.
6An economy moves from point A inside its PPC to point B on the PPC. What does this show?
A.Economic growth
B.A fall in opportunity cost
C.Fuller use of existing resources
D.An outward shift of the PPC
Explanation: Points inside the PPC indicate unemployed or under-used resources. Moving to a point on the PPC means existing resources are now being used more fully (e.g. lower unemployment), without any expansion of capacity.
7In a market economic system, how are most resources allocated?
A.By the government through central planning
B.By tradition and custom
C.Through the price mechanism (demand and supply)
D.By voluntary community committees
Explanation: A market economy allocates resources through the price mechanism — prices, set by the interaction of demand and supply, signal where resources should flow. Producers respond to profit signals and consumers to prices.
8Which of the following is the BEST example of enterprise as a factor of production?
A.Iron ore extracted from a mine
B.An entrepreneur who combines factors and bears the risk of starting a new firm
C.A factory robot welding car parts
D.An employee who works night shifts
Explanation: Enterprise is the factor of production that organises the other factors (land, labour, capital) and bears the risk of business decisions. An entrepreneur starting a firm best illustrates this.
9A mixed economy is best described as one in which:
A.All resources are owned by the state
B.Resources are allocated only through markets with no government role
C.Both the private sector and the government allocate resources
D.Resources are allocated by custom and tradition
Explanation: A mixed economy combines features of market and planned systems: most resources are allocated through markets, but the government also provides some goods (e.g. public goods) and intervenes to correct market failures.
10On a straight-line PPC between cars and computers, the opportunity cost of producing one more car is:
A.Constant — a fixed number of computers
B.Increasing as more cars are produced
C.Decreasing as more cars are produced
D.Zero, because resources are unlimited
Explanation: A straight-line PPC implies that resources are equally suited to both goods, so the opportunity cost of one good in terms of the other does not change as production shifts. A bowed-out PPC, by contrast, has increasing opportunity cost.

About the IGCSE Economics Exam

Cambridge IGCSE Economics (0455) is the international upper-secondary qualification in Economics taken by Year 10-11 students worldwide. The course introduces the basic economic problem, allocation of resources through markets, microeconomic decision-makers (households, workers, firms), the role of government in the macroeconomy (fiscal, monetary and supply-side policy), economic development indicators (GDP and HDI), and international trade including globalisation, exchange rates and the balance of payments. Candidates take two written papers — a 30-mark multiple-choice paper and a 90-mark structured-response paper with data response and essay-style questions.

Questions

100 scored questions

Time Limit

Paper 1: 45 min; Paper 2: 2 hr 15 min

Passing Score

Grades A*-G awarded; Grade C usually treated as higher-tier pass

Exam Fee

£60-£140 per subject (school-set entry fee, varies by centre) (Cambridge Assessment International Education (CAIE))

IGCSE Economics Exam Content Outline

~10%

The basic economic problem

Scarcity and the need to choose, opportunity cost, factors of production (land, labour, capital, enterprise) and factor rewards, production possibility curves, market, planned and mixed economic systems

~20%

The allocation of resources

Demand and supply curves and their determinants, market equilibrium, excess demand and supply, price elasticity of demand and supply, market failure, externalities, public and merit goods, taxes, subsidies and price controls

~20%

Microeconomic decision-makers

Money and banking, central and commercial banks, households (income, spending, saving, borrowing), workers and trade unions, firms by size, specialisation, mergers, costs, revenue, profit, objectives and market structures

~25%

Government and the macroeconomy

Macroeconomic aims, fiscal policy (direct and indirect taxes, government spending), monetary policy (interest rates), supply-side policy, unemployment types, inflation (demand-pull, cost-push, CPI), deflation, economic growth and the business cycle

~15%

Economic development

Living standards, GDP per capita and HDI, poverty (absolute and relative), Lorenz curve and Gini coefficient, demographic transition model, population pyramids, dependency ratio and effects of changing population

~10%

International trade and globalisation

International specialisation, free trade and protectionism (tariffs, quotas, embargoes, subsidies), globalisation and multinationals, fixed vs floating exchange rates, appreciation and depreciation, balance of payments structure

How to Pass the IGCSE Economics Exam

What You Need to Know

  • Passing score: Grades A*-G awarded; Grade C usually treated as higher-tier pass
  • Exam length: 100 questions
  • Time limit: Paper 1: 45 min; Paper 2: 2 hr 15 min
  • Exam fee: £60-£140 per subject (school-set entry fee, varies by centre)

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

IGCSE Economics Study Tips from Top Performers

1Memorise the four factors of production (land, labour, capital, enterprise) and their factor rewards (rent, wages, interest, profit) — these underpin every microeconomics question
2Practise drawing demand and supply diagrams with correct axis labels (Price on Y, Quantity on X) and clearly show shifts versus movements along the curve — Paper 2 marks are lost when shifts and movements are confused
3Learn the PED formula (% change in QD / % change in P) and how total revenue changes with elastic vs inelastic demand — multiple-choice questions test this every series
4Build a memorised list of the macroeconomic aims (full employment, price stability, growth, BoP equilibrium, equitable distribution) and the typical policy conflicts between them

Frequently Asked Questions

How is Cambridge IGCSE Economics 0455 assessed?

All candidates take two papers. Paper 1 is a 45-minute multiple-choice paper of 30 questions worth 30 marks (30% of the qualification). Paper 2 is a 2-hour-15-minute structured-response paper of 90 marks (70%) including a compulsory data-response question and a choice of structured essay-style questions.

Is there a Core and Extended pathway in IGCSE Economics?

No. Unlike sciences such as 0610 Biology, Cambridge IGCSE Economics 0455 has a single tier of entry. Every candidate sits the same Paper 1 and Paper 2 and is graded on the full A*-G scale.

What grading scale does IGCSE Economics 0455 use?

Cambridge IGCSE 0455 uses the A*-G scale. A* is the highest grade and G is the minimum pass. A grade C is usually treated as the higher-tier pass for sixth-form, A-Level and university entry.

Is the 2026 syllabus different from previous years?

The current syllabus covers the 2026-2027 examination series. The content structure (six sections from basic economic problem through international trade) is consistent with the 2020-2025 syllabus, so past papers from those years remain useful practice.