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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.

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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

What is the most likely effect of an increase in the price of coffee on the demand for tea, assuming tea and coffee are substitutes?

  1. The demand curve for tea shifts to the left
  2. The demand curve for tea shifts to the right
  3. There is a movement along the demand curve for tea
  4. The supply curve for tea shifts to the right
Show answer & explanation
✓ Answer: B — The demand curve for tea shifts to the right
Award 1 mark for identifying that the demand curve for tea shifts to the right. When the price of coffee rises, consumers switch to tea as a substitute, increasing the demand for tea at all price levels. A is incorrect because demand for a substitute increases, not decreases. C is incorrect because a change in the price of a related good causes a shift, not a movement along the curve. D is incorrect because this affects demand, not supply.
Q2 · Difficulty 1/3

Which of the following would cause the supply curve for coffee to shift to the right?

  1. An increase in the price of coffee
  2. A decrease in the wages of coffee farm workers
  3. An increase in the price of tea
  4. A decrease in the demand for coffee
Show answer & explanation
✓ Answer: B — A decrease in the wages of coffee farm workers
Award 1 mark for identifying that lower wages reduce costs of production, enabling firms to supply more at each price. A is incorrect — a change in the price of the good itself causes a movement along the supply curve, not a shift. C is incorrect — the price of tea (a substitute in consumption) affects demand, not supply. D is incorrect — a decrease in demand shifts the demand curve, not the supply curve.
Q3 · Difficulty 1/3

A household's disposable income is best defined as:

  1. Income saved after all household expenditure is paid
  2. Income spent on essential goods and services only
  3. Total income before any deductions are made
  4. Income remaining after direct taxes and state benefits are accounted for
Show answer & explanation
✓ Answer: D — Income remaining after direct taxes and state benefits are accounted for
Disposable income is income after direct taxes (such as income tax) have been deducted and any state transfer payments (such as benefits) have been added. Gross income (A) is income before deductions. Option C confuses disposable income with expenditure on necessities. Option D describes residual savings, not disposable income.
Q4 · Difficulty 1/3

Which policy measure would a central bank most likely use to reduce demand-pull inflation?

  1. Decrease the rate of interest
  2. Increase the rate of interest
  3. Increase government spending
  4. Reduce income tax rates
Show answer & explanation
✓ Answer: B — Increase the rate of interest
Award 1 mark for identifying that higher interest rates reduce borrowing and consumer spending, thereby reducing aggregate demand and demand-pull inflation. A is incorrect — decreasing interest rates would increase borrowing and spending, worsening inflation. C is incorrect — increased government spending would raise aggregate demand. D is incorrect — reducing income tax would increase disposable income and spending.
Q5 · Difficulty 1/3

Which of the following best describes a trade union?

  1. A government body that sets the national minimum wage
  2. An organisation of workers that aims to improve pay and conditions
  3. An association of businesses in the same industry
  4. 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 C describes an employers' association function, not a union. Option D describes a trade association of firms, not workers.
Q6 · Difficulty 1/3

What is meant by the term 'birth rate'?

  1. The total number of births in a country in one year
  2. The number of live births per 1000 of the population per year
  3. The percentage of women who give birth each year
  4. The number of children born to each woman in her lifetime
Show answer & explanation
✓ Answer: B — The number of live births per 1000 of the population per year
Award 1 mark for identifying birth rate as the number of live births per 1000 of the population per year. A is incorrect — this describes total births, not a rate. C is incorrect — this would be a fertility measure specific to women only. D is incorrect — this describes the total fertility rate, not the birth rate.
Q7 · Difficulty 1/3

Which of the following is a characteristic of a perfectly competitive market?

  1. Firms are price makers
  2. There are significant barriers to entry
  3. Products are homogeneous
  4. 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.
Q8 · Difficulty 1/3

What is meant by the term 'fixed costs'?

  1. Costs that change with the level of output
  2. Costs that remain constant regardless of the level of output
  3. Costs that are always higher than variable costs
  4. Costs that only occur when production begins
Show answer & explanation
✓ Answer: B — Costs that remain constant regardless of the level of output
Award 1 mark for identifying that fixed costs remain constant regardless of the level of output. A is incorrect — this describes variable costs. C is incorrect — fixed costs are not necessarily higher than variable costs. D is incorrect — fixed costs exist even when output is zero.
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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.