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The Basic Economic Problem
Practice Questions

89 CIE IGCSE Economics questions on The Basic Economic Problem, each with instant feedback and a full examiner-style mark scheme.

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Try 2 sample questions on The Basic Economic Problem

Question 1 · 1 mark · Difficulty 1/3

Which combination correctly identifies the three basic economic questions that all economies must answer?

  1. What is the price? Who sets wages? How is trade organised?
  2. How much to save? What to import? Who controls the banks?
  3. Who owns resources? How much profit is made? Who pays taxes?
  4. What to produce? How to produce? For whom to produce?
Show answer & explanation
✓ Answer: D — What to produce? How to produce? For whom to produce?
Every economy must decide what goods and services to produce, how to produce them (which resources and methods to use), and for whom they are produced (distribution of output). The other options contain questions that may be relevant in economics but do not represent the fundamental three basic economic questions as defined in the IGCSE syllabus.
Question 2 · 1 mark · Difficulty 1/3

Which of the following best defines opportunity cost?

  1. The next best alternative foregone when making a choice
  2. The additional cost of producing one more unit of output
  3. The average cost of all alternatives that were not chosen
  4. The total money spent on purchasing a good or service
Show answer & explanation
✓ Answer: A — The next best alternative foregone when making a choice
Opportunity cost is defined as the next best alternative that is given up when a decision is made. Option A describes monetary cost, not opportunity cost. Option C describes marginal cost. Option D is incorrect because opportunity cost refers only to the single next best alternative, not the average of all alternatives.
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CIE IGCSE Economics: The Basic Economic Problem FAQ

How many CIE IGCSE Economics questions on The Basic Economic Problem are there on Kramizo?
Kramizo currently has 89 exam-board-aligned practice questions on The Basic Economic Problem 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 Basic Economic Problem 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 Basic Economic Problem 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 Basic Economic Problem typically tested on CIE IGCSE Economics papers?
The Basic Economic Problem 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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