Cambridge IGCSE

Economics 0455

Scarcity, markets, firms, government policy, development and international trade, using real-world data.

Exam year

Syllabus version: 2027–2029 syllabusChecked against the Cambridge syllabusExam year 2027 is covered by the 2027–2029 syllabus.

Subject review complete (20 Oct 2026). All 40 Economics questions were re-solved and checked against the syllabus and Cambridge mark-scheme conventions, and their auto-marking was tested with correct and incorrect answers: 20 approved as written, 20 corrected.

Paper 1 Multiple Choice30%
Paper 2 Structured Questions70%

Original questions40

Topics covered6/6

Papers2

Mock papers2

What is assessed

2 components. Question formats: multiple choice, data response, structured.

Paper 1 Multiple Choice

1 h40 marksWeighting 30%

All 40 four-option multiple-choice questions are compulsory and cover all the subject content; some require calculations or analysis of diagrams.

What the paper looks like

From 2027: 40 compulsory four-option multiple-choice items in 1 hour (2026: 30 items in 45 minutes), roughly in syllabus order across all six topics. Many are one-step recall, but a good share use small tables, demand and supply or PPC diagrams, or short calculations (PED, PES, costs, percentage changes, exchange rates). Distractors are built from typical errors, so read any bold words such as NOT or MOST carefully. Calculator allowed.

Multiple choiceCalculator permitted

Checked against the Cambridge syllabus

Paper 2 Structured Questions

2 h80 marksWeighting 70%

Section A: compulsory 20-mark Question 1, parts (a)–(f), on unseen information about a real economy; Section B: three 20-mark questions, parts (a)–(d), chosen from four.

What the paper looks like

Section A: one compulsory data-response question on an unseen real economy with text and a table; from 2027 parts (a)–(f) total 20 marks, typically a 2-mark calculation, short Identify/Explain items of 2 marks, a 4-mark diagram, a 4-mark Analyse-the-relationship item and a 6-mark Discuss (2026: 30 marks with more parts). You must use the information. Section B: choose three of four 20-mark questions, each (a) Define/Identify 2, (b) Explain 4, (c) Analyse 6, (d) Discuss 8 marked with levels (both sides developed and a reasoned judgement for Level 3). Calculator allowed; diagrams may be required.

Data responseStructuredCalculator permitted

Checked against the Cambridge syllabus

Assessment overview

From the 2027–2029 syllabus. Checked against the Cambridge syllabus

All candidates

Paper 1Paper 2

Untiered: everyone takes Papers 1 and 2 and is eligible for grades A* to G.

Assessment objective	IGCSE weighting
AO1 Knowledge and understanding	43%
AO2 Analysis	47%
AO3 Evaluation	10%

Changes in this syllabus version

Paper 1 now has 40 questions (was 30) and lasts 1 hour (was 45 minutes); still 30% of the qualification.
Paper 2 is now 80 marks (was 90) and 2 hours (was 2 hours 15 minutes); Section A Question 1 is reduced to 20 marks.
AO weightings changed to AO1 43%, AO2 47%, AO3 10% (evaluation reduced); AO wording updated; Paper 2 mark scheme layout revised, with Table A levels for the 8-mark (d) parts.
Removed or reduced: trade unions as a separate topic, causes and forms of growth of firms, the role of government topic, principles of taxation, changing patterns of employment, deflation detail, population pyramids, fixed exchange rates, claimant count, and mobility of capital, land and enterprise.
Added: environment and sustainability throughout, scarcity, perfectly inelastic/unitary/perfectly elastic terms, monopoly as a market failure, arguments about the mixed economy, national minimum wage diagrams, types of merger, ATC diagrams for economies of scale, competitive vs monopoly markets, reasons for taxation, infrastructure spending, recession, seasonal unemployment, healthcare as an anti-poverty policy.
New content on causes and consequences of changes in globalisation, definitions of specialisation by country and free trade, reasons for and effects of trade restrictions, reasons for buying and selling currencies, and floating exchange rate, appreciation and depreciation.

Command words used in Economics papers (9)

Analyse: examine something in detail, breaking it into parts and showing how those parts connect
Calculate: work out a value from the facts or figures given, showing the working
Define: give the exact meaning of a term
Describe: set out the main features or characteristics of something
Discuss: write in depth about an issue in an organised way, considering more than one side
Explain: give reasons or purposes, make the links between things clear and say why or how, with support
Give: produce an answer taken from the source material or recalled from memory
Identify: name, pick out or recognise something
State: express something clearly and briefly

Examiner guidance from recent reports (14)

The basic economic problem. When asked for rewards to factors of production, give the reward (rent, wages, interest, profit), not the factor itself; in Section A, take them from the source if it names them.

The basic economic problem. Opportunity cost is the single next best alternative given up, not all the alternatives and not the money price. On a PPC, read off how much of the other good is lost.

The allocation of resources. A change in the product’s own price causes a movement along the demand curve (extension or contraction); any other influence shifts the whole curve. Many lose MCQ marks by confusing the two.

The allocation of resources. PED = % change in quantity demanded ÷ % change in price. Do not divide the other way round, subtract the percentages or express the answer as a percentage; the sign is usually negative but examiners accept the value with or without it.

The allocation of resources. Diagrams need labelled axes (price, quantity), labelled original and new curves, and both equilibrium positions marked. A shift drawn in the wrong direction or unlabelled curves loses most of the marks.

The allocation of resources. For a maximum price set below equilibrium, measure the shortage as quantity demanded minus quantity supplied at that price, not the distance from the old equilibrium quantity.

Microeconomic decision-makers. Learn the precise functions of money: a unit of account is the measure of value; do not confuse functions (medium of exchange, store of value) with characteristics (divisible, durable, portable).

Microeconomic decision-makers. Fewer workers producing more output means labour productivity has risen. Mechanisation usually raises total cost but lowers average total cost – keep total and average apart.

Microeconomic decision-makers. Answer the question set: if asked about consumers, analyse price, choice and quality for consumers rather than effects on workers or the whole economy.

Government and the macroeconomy. Know the difference between how unemployment is measured (labour force survey of households) and how the rate is calculated (unemployed ÷ labour force × 100).

Government and the macroeconomy. Keep fiscal policy (taxes, government spending) and monetary policy (interest rates, money supply, exchange rate) separate. When arguing against a policy, explain limits such as time lags or the type of unemployment, rather than describing the opposite policy.

Government and the macroeconomy. For questions on why a government wants stable prices, explain the harm caused by inflation or deflation and the benefits of stability, not just what stable prices mean.

Economic development. When analysing a relationship in a table, state the expected relationship, quote evidence by naming countries, explain why the link exists, then point out and explain any exception. Copying the figures without interpretation earns little.

International trade and globalisation. An appreciation makes exports dearer and imports cheaper abroad; a depreciation does the reverse. Link the change to the current account and total demand – spending on imports does not increase domestic total demand.

Topic map

Practice types

Free sample questions

Which item is most likely to be a free good?

seawater used by a swimmer at an ocean beach
bottled spring water sold in a shop
electricity generated by solar panels
a public park maintained by the local government

Answer: A. seawater used by a swimmer at an ocean beach

A free good has no opportunity cost: it is not scarce and no resources are needed to provide it. Seawater at the beach is available in unlimited amounts to the swimmer. Bottled water and solar electricity use scarce resources (labour, capital), and a public park uses land and government spending that could have been used elsewhere – it is free at the point of use, but it is an economic good.

The table shows the maximum combinations of capital goods and consumer goods an economy can produce. [table]…

The table shows the maximum combinations of capital goods and consumer goods an economy can produce.

combination	capital goods (units)	consumer goods (units)
V	0	100
W	10	95
X	20	85
Y	30	70
Z	40	50

The economy moves from combination X to combination Y. What is the opportunity cost of the extra capital goods?

10 capital goods
15 consumer goods
70 consumer goods
85 consumer goods

Answer: B. 15 consumer goods

Moving from X (20, 85) to Y (30, 70) gains 10 capital goods but consumer goods fall from 85 to 70. The opportunity cost is what is given up: 85 − 70 = 15 consumer goods. 10 capital goods is the gain, not the cost; 70 and 85 are levels of output, not the amount sacrificed.

FAQs

Are these official 0455 past-paper questions?

No. They are original questions written to match the Economics syllabus topics. Official past papers are available to schools through Cambridge.

Why choose an exam year?

Cambridge updates syllabuses periodically. Your exam year selects the matching configuration so topics and components follow the right version.

Is a calculator allowed?

In this configuration a scientific calculator is permitted for the listed papers. Check your syllabus for the exact rule.