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The Allocation of Resources
Practice Questions

157 CIE IGCSE Economics questions on The 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 The Allocation of Resources.

Try 2 sample questions on The Allocation of Resources

Question 1 · 1 mark · Difficulty 1/3

What is the term used to describe the costs or benefits of an economic activity that affect third parties who are not directly involved in the transaction?

  1. Private costs
  2. Externalities
  3. Opportunity costs
  4. Social benefits
Show answer & explanation
✓ Answer: B — Externalities
Award 1 mark for identifying externalities as costs or benefits affecting third parties not involved in the transaction. A is incorrect — private costs are borne by the producer or consumer directly involved. C is incorrect — opportunity costs refer to the next best alternative forgone. D is incorrect — social benefits include both private benefits and external benefits, but the term does not specifically describe third-party effects.
Question 2 · 1 mark · Difficulty 1/3

What does a positive income elasticity of demand indicate about a good?

  1. Demand is unaffected by income changes
  2. The good has no substitutes
  3. Demand falls when income rises
  4. Demand rises when income rises
Show answer & explanation
✓ Answer: D — Demand rises when income rises
Award 1 mark for identifying that positive YED means demand and income move in the same direction. C is incorrect — this describes a negative YED (inferior good). A is incorrect — zero YED would indicate no relationship. B is incorrect — substitutes relate to cross elasticity of demand, not income elasticity.
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20 questions · 25 min · free

CIE IGCSE Economics: The Allocation of Resources FAQ

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 The 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 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 The Allocation of Resources typically tested on CIE IGCSE Economics papers?
The 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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