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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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Try 2 sample questions on The Allocation of Resources

Question 1 · 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.
Question 2 · 1 mark · Difficulty 1/3

Which of the following products is most likely to have a price inelastic demand?

  1. A luxury sports car with several close substitutes
  2. A particular brand of cola with many competitor brands
  3. A specific brand of insulin required daily by diabetic patients
  4. A holiday package to a destination accessible by multiple tour operators
Show answer & explanation
✓ Answer: C — A specific brand of insulin required daily by diabetic patients
Award 1 mark for correct answer. Insulin is a necessity with no close substitutes; diabetic patients must purchase it regardless of price changes, making demand highly inelastic. A is incorrect because multiple substitutes increase elasticity. C is incorrect because many competitor brands provide close substitutes, increasing price elasticity. D is incorrect because multiple tour operators offer substitutes, making demand more elastic.
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CIE IGCSE Economics: The Allocation of Resources FAQ

How many CIE IGCSE Economics questions on The Allocation of Resources are there on Kramizo?
Kramizo currently has 157 exam-board-aligned practice questions on The 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 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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