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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

A developed country typically has a ____ income per head.

  1. low
  2. high
  3. zero
  4. negative
Show answer & explanation
✓ Answer: B — high
High GDP per capita.
Q2 · Difficulty 1/3

Which of the following products is most likely to have a price inelastic demand?

  1. A luxury sports car with several close substitutes
  2. A particular brand of cola with many competitor brands
  3. A specific brand of insulin required daily by diabetic patients
  4. A holiday package to a destination accessible by multiple tour operators
Show answer & explanation
✓ Answer: C — A specific brand of insulin required daily by diabetic patients
Award 1 mark. Insulin is a necessity with no close substitutes, and diabetic patients must buy it regardless of price, so demand is highly price inelastic. A luxury sports car with several close substitutes has elastic demand. A particular brand of cola competes with many rival brands, which are close substitutes, so its demand is elastic. A holiday package available from multiple tour operators also has close substitutes and therefore elastic demand.
Q3 · Difficulty 1/3

Which of the following best defines economic growth?

  1. A reduction in unemployment leading to a higher standard of living for all citizens
  2. An increase in a country's productive capacity over time, measured by a rise in real GDP
  3. An increase in a country's nominal GDP caused by a rise in the general price level
  4. An increase in a country's exports relative to its imports over a given period
Show answer & explanation
✓ Answer: B — An increase in a country's productive capacity over time, measured by a rise in real GDP
Award 1 mark. Economic growth is defined as a rise in real output or productive capacity over time. Higher nominal GDP caused by a rise in the general price level is not real growth: this is the common confusion between real and nominal GDP. An increase in exports relative to imports describes an improvement in the trade balance, a separate macroeconomic concept. Falling unemployment and higher living standards are consequences of growth rather than its definition.
Q4 · Difficulty 1/3

Which of the following is the best definition of fiscal policy?

  1. The use of exchange rates to improve the balance of payments
  2. The control of the money supply to reduce inflation
  3. The use of government spending and taxation to influence the economy
  4. The use of interest rates to influence aggregate demand
Show answer & explanation
✓ Answer: C — The use of government spending and taxation to influence the economy
Fiscal policy refers specifically to government decisions on spending and taxation to manage economic activity. Option D describes monetary policy. Option B describes a form of monetary policy targeting money supply. Option C describes exchange rate policy.
Q5 · Difficulty 1/3

Life expectancy in developed countries is generally:

  1. lower
  2. higher
  3. the same
  4. unknown
Show answer & explanation
✓ Answer: B — higher
Higher, due to better healthcare.
Q6 · Difficulty 1/3

What is the main purpose of an indirect tax?

  1. To raise government revenue and/or reduce consumption of certain goods
  2. To lower the market price for consumers
  3. To increase the profits of producers
  4. To increase the quantity of goods supplied
Show answer & explanation
✓ Answer: A — 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. D is incorrect — indirect taxes typically reduce quantity supplied at any given price. B is incorrect — indirect taxes raise, not lower, consumer prices. C is incorrect — indirect taxes reduce producer revenue per unit sold.
Q7 · Difficulty 1/3

Economics is best described as the study of:

  1. how scarce resources are allocated
  2. banking only
  3. trade only
  4. money only
Show answer & explanation
✓ Answer: A — how scarce resources are allocated
It studies resource allocation.
Q8 · Difficulty 1/3

An example of a renewable energy source is:

  1. oil
  2. natural gas
  3. coal
  4. solar power
Show answer & explanation
✓ Answer: D — solar power
Solar is renewable.
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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.