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 of the following best describes a trade union?
- A government body that sets the national minimum wage
- An organisation of workers that aims to improve pay and conditions
- An association of businesses in the same industry
- A firm that negotiates contracts on behalf of employers
Show answer & explanation
✓ Answer: B — An organisation of workers that aims to improve pay and conditions
A trade union is an organisation of workers that collectively bargains to improve wages, working conditions, and job security. Option A describes a government body, not a union. Option D describes an employers' association function, not a union. Option C describes a trade association of firms, not workers.
Q2 · Difficulty 1/3
What is the main objective of most private sector firms?
- To maximise government revenue
- To maximise market share only
- To maximise employment
- To maximise profit
Show answer & explanation
✓ Answer: D — To maximise profit
Award 1 mark for identifying profit maximisation as the primary objective of private sector firms. C is incorrect — maximising employment is typically a government objective. A is incorrect — government revenue is not a firm's objective. B is incorrect — while market share may be an objective, profit maximisation is the primary goal.
Q3 · Difficulty 1/3
Which of the following is a characteristic of a perfectly competitive market?
- Firms are price makers
- There are significant barriers to entry
- Products are homogeneous
- There are only a few large firms
Show answer & explanation
✓ Answer: C — Products are homogeneous
Award 1 mark for identifying that perfect competition requires identical products. A is incorrect — firms in perfect competition are price takers, not price makers. B is incorrect — there are no barriers to entry in perfect competition. D is incorrect — perfect competition has many small firms, not a few large ones.
Q4 · 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?
- $600
- $450
- $550
- $650
Show answer & explanation
✓ Answer: A — $600
Gross weekly wage = hourly wage × hours worked = $15 × 40 = $600. Option B ($450) results from multiplying $15 by 30 hours, a common arithmetic error. Option C ($550) has no clear basis and represents a random distractor. Option D ($650) may result from adding an incorrect overtime figure.
Q5 · Difficulty 2/3
A soft drink bottling company in Mexico has the following cost structure:
Fixed costs: $10,000 per month
Variable cost per bottle: $0.50
If the company produces 50,000 bottles per month, what is the average total cost per bottle?
- $1.00
- $0.50
- $0.70
- $0.20
Show answer & explanation
✓ Answer: C — $0.70
Award 1 mark for correct calculation. Total variable cost = 50,000 × $0.50 = $25,000. Total cost = $10,000 + $25,000 = $35,000. Average total cost = $35,000 ÷ 50,000 = $0.70. B is incorrect — this is only the variable cost per unit. D is incorrect — this is only the average fixed cost. A is incorrect — this results from calculation error.
Q6 · Difficulty 2/3
A furniture manufacturer in Vietnam produces wooden chairs. The factory rent is $5000 per month and each chair requires $20 of wood and $10 of labour to produce. If the firm produces 200 chairs in a month, what is the average cost per chair?
- $55
- $25
- $50
- $30
Show answer & explanation
✓ Answer: A — $55
Award 1 mark for correct calculation. Total variable costs = 200 × ($20 + $10) = $6000. Total costs = $5000 + $6000 = $11000. Average cost = $11000 ÷ 200 = $55. D is incorrect — this only includes variable cost per unit. B is incorrect — this is the fixed cost divided by output. C is incorrect — this omits the labour cost.
Q7 · Difficulty 1/3
A household's disposable income is best defined as:
- Income spent on essential goods and services only
- Total income before any deductions are made
- Income remaining after direct taxes and state benefits are accounted for
- Income saved after all household expenditure is paid
Show answer & explanation
✓ Answer: C — Income remaining after direct taxes and state benefits are accounted for
Award 1 mark. Disposable income is what remains after direct taxes are taken off and state benefits added. Income before deductions is gross income, and spending on essentials or saving is how disposable income is used.
Q8 · Difficulty 2/3
In Nigeria, a farmer wants to exchange yams for cloth, but the cloth trader wants rice instead of yams. Which function of money would solve this problem?
- Medium of exchange
- Standard of deferred payment
- Store of value
- Unit of account
Show answer & explanation
✓ Answer: A — Medium of exchange
Award 1 mark for identifying medium of exchange. The scenario describes a double coincidence of wants problem in a barter system. Money as a medium of exchange allows the farmer to sell yams for money, then use that money to buy cloth. C is incorrect — store of value relates to holding wealth. D is incorrect — unit of account relates to measuring value. B is incorrect — standard of deferred payment relates to future payments.
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.