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CXC CAPE · · Economics

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.

Take a Mini Mock →

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 causes a movement along a demand curve?

  1. A change in the price of a substitute
  2. A change in consumer tastes
  3. A change in the price of the good itself
  4. A change in consumer income
Show answer & explanation
✓ Answer: C — A change in the price of the good itself
Award 1 mark. Everything else shifts the whole curve, and blurring the two produces an answer that cannot be marked.
Q2 · 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.
Q3 · 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.
Q4 · Difficulty 1/3

What is the single most important determinant of price elasticity of supply?

  1. The level of consumer income
  2. Time, since producers need it to change output
  3. Whether the good is a luxury or a necessity
  4. The number of buyers in the market
Show answer & explanation
✓ Answer: B — Time, since producers need it to change output
Award 1 mark. Agricultural supply is highly inelastic within a growing season and far more elastic over several seasons.
Q5 · Difficulty 1/3

What does a negative income elasticity of demand indicate?

  1. A necessity, whose demand rises slower than income
  2. A luxury good, whose demand rises faster than income
  3. An inferior good, whose demand falls as income rises
  4. A complement to another good
Show answer & explanation
✓ Answer: C — An inferior good, whose demand falls as income rises
Award 1 mark. For income and cross elasticity the sign *is* the classification, so reporting the magnitude alone misses the point of the calculation.
Q6 · Difficulty 1/3

What is a substitute good?

  1. A good bought alongside another, so a rise in one price lowers demand for the other
  2. A good whose demand falls as income rises
  3. A good bought instead of another, so a rise in one price raises demand for the other
  4. A good produced using the same inputs as another
Show answer & explanation
✓ Answer: C — A good bought instead of another, so a rise in one price raises demand for the other
Award 1 mark. A complement is the good bought alongside, where the relationship runs the other way.
Q7 · Difficulty 1/3

When is a maximum price effective?

  1. Only when it is set below the equilibrium price
  2. Whenever the government imposes it, regardless of level
  3. Only when it is set above the equilibrium price
  4. Only when supply is perfectly inelastic
Show answer & explanation
✓ Answer: A — Only when it is set below the equilibrium price
Award 1 mark. Set above equilibrium it has no effect at all, and questions sometimes test exactly that.
Q8 · 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.
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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.