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Free CXC CAPE Economics
Practice Paper

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

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What the real CXC CAPE Economics paper looks like

Paper 01 (Multiple Choice)
45 multiple-choice questions, 1 mark each. About 1 hour 30 minutes. Tests knowledge across all three Modules of the Unit.
Paper 02 (Essay / Structured)
Extended essay and structured questions, one per Module. Around 2 hours 30 minutes. Tests developed argument, application and use of examples.
Paper 03 (Internal Assessment)
School-Based Assessment for school candidates (Paper 03/1) or an alternative written paper for private candidates (Paper 03/2). Coursework/research component worth a significant share of the Unit grade.
Total written exam time: ~4 hours across Paper 01 and Paper 02, plus the Internal Assessment.
Grading: Unit grades: I (highest) to VII (lowest), with a Grade Point Average and per-Module profile. Grades I–V are the pass range for most purposes.

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 marginal utility?

  1. The total satisfaction from consuming all units of a good
  2. The addition to total utility from consuming one more unit
  3. The satisfaction per dollar spent on a good
  4. The satisfaction lost when a good becomes more expensive
Show answer & explanation
✓ Answer: B — The addition to total utility from consuming one more unit
Award 1 mark. It is always the difference between consecutive totals, which is where most arithmetic errors in this topic arise.
Q2 · Difficulty 1/3

What is effective demand?

  1. The quantity buyers are willing and able to purchase at a given price
  2. The quantity buyers would like to have regardless of price
  3. The quantity actually sold in a market last period
  4. The quantity sellers choose to offer for sale
Show answer & explanation
✓ Answer: A — The quantity buyers are willing and able to purchase at a given price
Award 1 mark. Desire without purchasing power is not demand, and the word able is where the mark sits.
Q3 · Difficulty 1/3

Which two effects explain why the demand curve slopes downward?

  1. The multiplier effect and the accelerator effect
  2. The scale effect and the output effect
  3. The income effect and the substitution effect
  4. The wealth effect and the interest rate effect
Show answer & explanation
✓ Answer: C — The income effect and the substitution effect
Award 1 mark. A lower price raises real purchasing power, and it also makes the good cheaper relative to alternatives.
Q4 · Difficulty 1/3

What does a positive cross elasticity of demand indicate?

  1. Demand for the good is elastic
  2. One good is inferior
  3. The two goods are substitutes
  4. The two goods are complements
Show answer & explanation
✓ Answer: C — The two goods are substitutes
Award 1 mark. A rise in the price of one raises demand for the other. A negative cross elasticity identifies complements.
Q5 · Difficulty 1/3

What are the four factors of production?

  1. Goods, services, income and wealth
  2. Demand, supply, price and quantity
  3. Land, labour, capital and enterprise
  4. Money, machinery, materials and management
Show answer & explanation
✓ Answer: C — Land, labour, capital and enterprise
Award 1 mark. These are the resources whose scarcity creates the economic problem in the first place.
Q6 · Difficulty 1/3

What does the law of diminishing marginal utility state?

  1. The price of a good falls as more of it is produced
  2. As consumption rises in a given period, the satisfaction from each additional unit eventually falls
  3. Consumers eventually stop buying a good altogether
  4. Total satisfaction falls as more of a good is consumed
Show answer & explanation
✓ Answer: B — As consumption rises in a given period, the satisfaction from each additional unit eventually falls
Award 1 mark. Total utility is still rising while this happens — it is the additions that shrink.
Q7 · Difficulty 1/3

How is price elasticity of demand calculated?

  1. Change in quantity demanded ÷ change in price
  2. Percentage change in quantity demanded ÷ percentage change in price
  3. Quantity demanded ÷ price
  4. Percentage change in price ÷ percentage change in quantity demanded
Show answer & explanation
✓ Answer: B — Percentage change in quantity demanded ÷ percentage change in price
Award 1 mark. Every elasticity is a ratio of percentage changes — using absolute changes is the commonest error in the topic.
Q8 · Difficulty 1/3

What is the economic problem?

  1. Unlimited wants set against scarce resources, which forces choice
  2. The tendency of prices to rise over time
  3. The failure of governments to distribute income fairly
  4. The difficulty of measuring national output accurately
Show answer & explanation
✓ Answer: A — Unlimited wants set against scarce resources, which forces choice
Award 1 mark. It applies to a household, a government and the world as a whole, and everything else in the syllabus follows from it.
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CXC CAPE Economics FAQ

What does the CXC CAPE Economics exam look like?
The CXC CAPE Economics exam is structured across 3 components. Paper 01 (Multiple Choice): 45 multiple-choice questions, 1 mark each. About 1 hour 30 minutes. Tests knowledge across all three Modules of the Unit. Paper 02 (Essay / Structured): Extended essay and structured questions, one per Module. Around 2 hours 30 minutes. Tests developed argument, application and use of examples. Paper 03 (Internal Assessment): School-Based Assessment for school candidates (Paper 03/1) or an alternative written paper for private candidates (Paper 03/2). Coursework/research component worth a significant share of the Unit grade. Total written exam time: ~4 hours across Paper 01 and Paper 02, plus the Internal Assessment.
Can I download a free CXC CAPE Economics past paper?
Real CXC CAPE past papers are published directly by CXC CAPE 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 CXC CAPE Economics graded?
Unit grades: I (highest) to VII (lowest), with a Grade Point Average and per-Module profile. Grades I–V are the pass range for most purposes. 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.