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Pearson Edexcel International · IGCSE · Economics

Free Pearson Edexcel International IGCSE Economics
Practice Paper

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

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What the real Pearson Edexcel International IGCSE Economics paper looks like

Paper 1
Objective and short-answer questions covering the breadth of the specification.
Paper 2
Structured and extended-response questions testing depth of understanding.
Total exam time varies by board and tier — typically 2.5 to 3.5 hours.
Grading: See the official board specification for the current grading scale.

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 UK supermarket buys bananas grown in Ecuador. From the UK's point of view, what are these bananas?

  1. Exports
  2. Quotas
  3. Subsidies
  4. Imports
Show answer & explanation
✓ Answer: D — Imports
Award 1 mark. Goods bought from another country are imports for the buyer's country, so the bananas are UK imports and Ecuadorian exports. A quota limits imports, and a subsidy is a government payment to producers.
Q2 · Difficulty 1/3

Which of these is a possible benefit of a monopoly?

  1. Large profits can fund research and development
  2. Consumers can choose between many suppliers
  3. Prices are set by consumers rather than firms
  4. Firms face strong pressure to cut costs
Show answer & explanation
✓ Answer: A — Large profits can fund research and development
Award 1 mark. A monopoly's high profits can pay for research, new products and large-scale investment that small firms could not afford. A monopoly offers no choice of supplier, it sets prices itself, and it faces little pressure to cut costs.
Q3 · Difficulty 1/3

What effect does a subsidy to producers have on supply?

  1. Supply decreases, shifting the curve to the left
  2. Supply increases, shifting the curve to the right
  3. Demand increases, shifting the demand curve right
  4. Supply is unchanged, but the price rises
Show answer & explanation
✓ Answer: B — Supply increases, shifting the curve to the right
Award 1 mark. A subsidy lowers producers' costs, so they are willing to supply more at every price, shifting supply to the right. It does not reduce supply, it acts on producers rather than demand, and it tends to lower rather than raise price.
Q4 · Difficulty 1/3

What is meant by average cost?

  1. Total revenue divided by the quantity sold
  2. Total cost divided by the quantity produced
  3. Fixed cost added to variable cost
  4. The extra cost of producing one more unit
Show answer & explanation
✓ Answer: B — Total cost divided by the quantity produced
Award 1 mark. Average cost, or unit cost, is total cost ÷ output, showing what each unit costs to make on average. Revenue per unit is average revenue (price), fixed plus variable cost is total cost, and the cost of one more unit is marginal cost.
Q5 · Difficulty 1/3

What is a normal good?

  1. A good for which demand falls as income rises
  2. A good bought together with another good
  3. A good whose price never changes
  4. A good for which demand rises as income rises
Show answer & explanation
✓ Answer: D — A good for which demand rises as income rises
Award 1 mark. Most goods are normal goods. Demand falling with income describes an inferior good, goods bought together are complements, and the price of a normal good can change.
Q6 · Difficulty 1/3

Which of these is a cost of unemployment to individuals?

  1. Higher wages from employers
  2. More choice of jobs to apply for
  3. Lower prices for the goods they buy
  4. Lost income and skills
Show answer & explanation
✓ Answer: D — Lost income and skills
Award 1 mark. Being unemployed means losing earnings, and over time skills and confidence can decline, making it harder to find work again. Higher wages, more job choice and lower prices are not consequences of losing a job.
Q7 · Difficulty 1/3

What is meant by demand?

  1. The quantity of a good consumers are willing and able to buy at each price over a period
  2. The quantity of a good firms are willing to supply at each price
  3. The total amount of money spent on a good in a year
  4. The desire for a good, whether or not people can afford it
Show answer & explanation
✓ Answer: A — The quantity of a good consumers are willing and able to buy at each price over a period
Award 1 mark. Demand must be effective: backed by the ability to pay. The quantity firms will sell is supply, total spending is expenditure (or revenue to firms), and a desire that cannot be paid for is not demand.
Q8 · Difficulty 1/3

What is deflation?

  1. A slower rate of increase in prices
  2. A fall in the value of a currency
  3. A fall in real GDP for two quarters
  4. A sustained fall in the general price level
Show answer & explanation
✓ Answer: D — A sustained fall in the general price level
Award 1 mark. Deflation means prices on average are falling, so the inflation rate is negative. Prices rising more slowly is disinflation, a currency losing value is depreciation, and two quarters of falling GDP is a recession.
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Pearson Edexcel International IGCSE Economics FAQ

What does the Pearson Edexcel International IGCSE Economics exam look like?
The Pearson Edexcel International IGCSE Economics exam is structured across 2 components. Paper 1: Objective and short-answer questions covering the breadth of the specification. Paper 2: Structured and extended-response questions testing depth of understanding. Total exam time varies by board and tier — typically 2.5 to 3.5 hours.
Can I download a free Pearson Edexcel International IGCSE Economics past paper?
Real Pearson Edexcel International past papers are published directly by Pearson Edexcel International 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 Pearson Edexcel International IGCSE Economics graded?
See the official board specification for the current grading scale. 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.