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Pearson Edexcel International · IGCSE · Economics

The Basic Economic Problem
Practice Questions

40 Pearson Edexcel International IGCSE Economics questions on The Basic Economic Problem, 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 Basic Economic Problem.

Try 2 sample questions on The Basic Economic Problem

Question 1 · 1 mark · Difficulty 1/3

The basic economic problem arises because resources are:

  1. scarce relative to wants
  2. unlimited
  3. free
  4. always wasted
Show answer & explanation
✓ Answer: A — scarce relative to wants
Scarcity means limited resources but unlimited wants.
Question 2 · 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.
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20 questions · 25 min · free

Pearson Edexcel International IGCSE Economics: The Basic Economic Problem FAQ

Is Kramizo free for Pearson Edexcel International 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 Pearson Edexcel International 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 Pearson Edexcel International IGCSE Economics syllabus?
Every question is written against the published Pearson Edexcel International 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 Pearson Edexcel International 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 Pearson Edexcel International.
How is The Basic Economic Problem typically tested on Pearson Edexcel International IGCSE Economics papers?
The Basic Economic Problem appears across multiple question types on real Pearson Edexcel International 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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