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Allocation of Resources
Practice Questions

20 CIE IGCSE Economics questions on Allocation of Resources, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for Allocation of Resources.

Try 2 sample questions on Allocation of Resources

Question 1 · 1 mark · Difficulty 1/3

Which of the following best describes the concept of opportunity cost?

  1. The cost of resources used in the production process
  2. The total cost of producing an additional unit of output
  3. The monetary price paid for a good or service
  4. The value of the next best alternative forgone when a choice is made
Show answer & explanation
✓ Answer: D — The value of the next best alternative forgone when a choice is made
Opportunity cost is defined as the value of the next best alternative sacrificed when a decision is made. Option A describes the market price, not opportunity cost. Option C describes marginal cost, which is a different concept. Option D describes the factor cost of production, not the opportunity cost.
Question 2 · 1 mark · Difficulty 1/3

Which of the following is the most accurate definition of market failure?

  1. When the free market fails to allocate resources efficiently, causing a misallocation
  2. When a market produces too many goods, leading to excess supply
  3. When consumers are unable to afford goods at the market equilibrium price
  4. When the price mechanism leads to a collapse in market prices
Show answer & explanation
✓ Answer: A — When the free market fails to allocate resources efficiently, causing a misallocation
Market failure occurs when the price mechanism results in a misallocation of resources — too much or too little of a good is produced relative to the socially optimal level. Option A describes surplus, not market failure per se. Option B describes a price crash, which may be a symptom but is not the definition. Option D describes an affordability or inequality issue, not market failure as defined by resource misallocation.
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20 questions · 25 min · free

CIE IGCSE Economics: Allocation of Resources FAQ

How many CIE IGCSE Economics questions on Allocation of Resources are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Allocation of Resources for CIE IGCSE Economics, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Economics?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix Allocation of Resources practice with other Economics topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the Allocation of Resources questions aligned to the official CIE IGCSE Economics syllabus?
Every question is written against the published CIE IGCSE Economics specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is Allocation of Resources typically tested on CIE IGCSE Economics papers?
Allocation of Resources appears across multiple question types on real CIE IGCSE Economics papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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