Kramizo
Log inSign up free
Home › CIE IGCSE Economics › Practice Paper
CIE · IGCSE · Economics

Free CIE IGCSE Economics
Practice Paper

8 mixed-difficulty practice questions in the style of real CIE IGCSE papers — answers, mark-scheme-style explanations, and the official exam structure all on one page.

Take a Mini Mock →

What the real CIE IGCSE Economics paper looks like

Paper 1 (Multiple Choice)
40 multiple-choice questions, 1 mark each. 45 minutes. Tests breadth of knowledge.
Paper 2 (Core) / Paper 4 (Extended)
Structured written paper. 1 hour 30 minutes (Core) or 1 hour 45 minutes (Extended). Tests depth of understanding and application.
Paper 6 (Alternative to Practical)
Written paper assessing practical skills for candidates without lab access. 1 hour. Worth ~20% of the total.
Total exam time: ~3 hours, depending on tier (Core vs Extended).
Grading: Grades: A* (highest) to G (lowest), with U (ungraded). Most universities require C or above.

Mini practice paper: 8 questions

Mixed-difficulty questions from across the Economics syllabus. Tap "Show answer" after each to check yourself.

Q1 · Difficulty 1/3

Which organisation is responsible for setting and enforcing rules for international trade between member nations?

  1. The International Monetary Fund (IMF)
  2. The World Bank
  3. The United Nations (UN)
  4. The World Trade Organization (WTO)
Show answer & explanation
✓ Answer: D — The World Trade Organization (WTO)
The WTO sets the multilateral rules governing international trade and provides a forum for resolving trade disputes between member countries. The IMF focuses on monetary cooperation and financial stability. The UN has a broader political remit. The World Bank provides development loans rather than trade regulation.
Q2 · Difficulty 1/3

What is the main purpose of an indirect tax?

  1. To increase the quantity of goods supplied
  2. To raise government revenue and/or reduce consumption of certain goods
  3. To lower the market price for consumers
  4. To increase the profits of producers
Show answer & explanation
✓ Answer: B — To raise government revenue and/or reduce consumption of certain goods
Award 1 mark for identifying that indirect taxes raise government revenue and/or reduce consumption. A is incorrect — indirect taxes typically reduce quantity supplied at any given price. C is incorrect — indirect taxes raise, not lower, consumer prices. D is incorrect — indirect taxes reduce producer revenue per unit sold.
Q3 · Difficulty 1/3

What is the term used to describe the costs or benefits of an economic activity that affect third parties who are not directly involved in the transaction?

  1. Private costs
  2. Externalities
  3. Opportunity costs
  4. Social benefits
Show answer & explanation
✓ Answer: B — Externalities
Award 1 mark for identifying externalities as costs or benefits affecting third parties not involved in the transaction. A is incorrect — private costs are borne by the producer or consumer directly involved. C is incorrect — opportunity costs refer to the next best alternative forgone. D is incorrect — social benefits include both private benefits and external benefits, but the term does not specifically describe third-party effects.
Q4 · Difficulty 2/3

A household earns a gross annual income of $40,000 and pays $8,000 in income tax and $2,000 in national insurance contributions. What is the household's annual disposable income?

  1. $38,000
  2. $40,000
  3. $32,000
  4. $30,000
Show answer & explanation
✓ Answer: D — $30,000
Disposable income = Gross income − Direct taxes. Both income tax and national insurance are direct taxes deducted from income: $40,000 − $8,000 − $2,000 = $30,000. Option A deducts only income tax. Option B deducts only national insurance. Option D is gross income with no deductions applied.
Q5 · Difficulty 2/3

A country has a GNI per capita of $800. According to the World Bank classification, this country would be categorised as which of the following?

  1. A low-income country
  2. An upper-middle-income country
  3. A lower-middle-income country
  4. A high-income country
Show answer & explanation
✓ Answer: A — A low-income country
The World Bank classifies low-income countries as those with a GNI per capita of $1,135 or less (2023 thresholds). A GNI per capita of $800 falls below this threshold, making it a low-income country. Lower-middle-income countries have GNI per capita between $1,136 and $4,465. Upper-middle-income countries range from $4,466 to $13,845. High-income countries exceed $13,845.
Q6 · Difficulty 2/3

Which factor is most likely to cause the wage rate in a particular occupation to rise?

  1. An increase in the supply of labour in that occupation
  2. A fall in the productivity of workers in that occupation
  3. A reduction in the barriers to entry to that occupation
  4. An increase in the demand for the good produced by that occupation
Show answer & explanation
✓ Answer: D — An increase in the demand for the good produced by that occupation
An increase in demand for the good produced raises the derived demand for labour in that occupation, shifting the demand for labour curve to the right and pushing wages up. Option A would increase labour supply, lowering wages. Option B reduces productivity, which lowers the demand for that labour. Option D makes it easier to enter the occupation, increasing labour supply and reducing wages.
Q7 · Difficulty 2/3

A worker receives a wage of $15 per hour and works 40 hours per week. What is the worker's gross weekly wage?

  1. $450
  2. $550
  3. $650
  4. $600
Show answer & explanation
✓ Answer: D — $600
Gross weekly wage = hourly wage × hours worked = $15 × 40 = $600. Option A ($450) results from multiplying $15 by 30 hours, a common arithmetic error. Option B ($550) has no clear basis and represents a random distractor. Option D ($650) may result from adding an incorrect overtime figure.
Q8 · Difficulty 2/3

Which of the following best explains why information failure can lead to market failure?

  1. The government fails to collect enough tax revenue to fund public services adequately
  2. Consumers and producers make decisions based on incomplete or inaccurate information, leading to inefficient resource allocation
  3. Competition between firms leads to excessive advertising that misleads consumers
  4. Producers deliberately lower prices to exclude certain consumers from the market
Show answer & explanation
✓ Answer: B — Consumers and producers make decisions based on incomplete or inaccurate information, leading to inefficient resource allocation
Information failure occurs when buyers or sellers lack the full and accurate information needed to make optimal decisions, causing them to consume or produce at levels that are not socially efficient — a form of market failure. Option A describes exclusion, which relates to private goods rather than information failure. Option C concerns government revenue, not market-based information problems. Option D describes misleading advertising as a possible symptom, but the core definition of information failure is incomplete or inaccurate information affecting rational decision-making.
Build a 30-question timed mock →
Free · No signup · Instant marking

CIE IGCSE Economics FAQ

What does the CIE IGCSE Economics exam look like?
The CIE IGCSE Economics exam is structured across 3 components. Paper 1 (Multiple Choice): 40 multiple-choice questions, 1 mark each. 45 minutes. Tests breadth of knowledge. Paper 2 (Core) / Paper 4 (Extended): Structured written paper. 1 hour 30 minutes (Core) or 1 hour 45 minutes (Extended). Tests depth of understanding and application. Paper 6 (Alternative to Practical): Written paper assessing practical skills for candidates without lab access. 1 hour. Worth ~20% of the total. Total exam time: ~3 hours, depending on tier (Core vs Extended).
Can I download a free CIE IGCSE Economics past paper?
Real CIE past papers are published directly by CIE on their official website. Kramizo doesn't redistribute copyrighted past papers, but we do generate free AI-written practice papers in the exact same style — same command words, same difficulty tier, same mark conventions. Use this practice paper as warm-up, then time yourself on official past papers before exam day.
How is CIE IGCSE Economics graded?
Grades: A* (highest) to G (lowest), with U (ungraded). Most universities require C or above. Kramizo's practice questions are tagged with difficulty 1-3 mapping roughly to the lower, middle, and top grade boundaries you'll encounter in the real exam.