IGCSE Economics (0455) — May–June 2025, Paper 13

30 questions · every question answerable online with instant point-by-point AI marking against the official mark scheme.

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Question 1 · 1 mark · The basic economic problem - factors of production

What is not a factor of production? A a 10 dollar note B a farm labourer C a farm shop D a tractor

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Question 2 · 1 mark · The basic economic problem - opportunity cost

A person works at home making small cakes. She can make 30 cakes an hour and works for four hours a day. The total cost of the ingredients is $50 and she sells the cakes for $2…

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Question 3 · 1 mark · The basic economic problem - production possibility curve

An economy produces different types of goods using its limited resources. This can be illustrated by a production possibility curve (PPC). The diagram shows a PPC with consumer…

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Question 4 · 1 mark · The allocation of resources - the market system

What is the function of the price mechanism in a market economy? A allocating resources and guiding choices B allowing governments to provide price stability C enabling markets to…

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Question 5 · 1 mark · The allocation of resources - market equilibrium and disequilibrium

The table shows the demand and supply schedules for rice. The current price is $2.00 per kilo. price per kilo $ quantity demanded (million tonnes) quantity supplied (million…

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Question 6 · 1 mark · The allocation of resources - changes in demand

The diagram shows the market for cherries in Chile. The diagram has price on the vertical axis and quantity on the horizontal axis. An upward-sloping supply curve S and two…

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Question 7 · 1 mark · The allocation of resources - price elasticity of demand

A German car producer estimates the price elasticity of demand (PED) for its cars is -2.0. What can be concluded from this information? A its cars are price elastic B its cars are…

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Question 8 · 1 mark · The allocation of resources - price elasticity of supply

The diagrams show the supply curves of four firms. Which firm has a price elasticity of supply of greater than zero but less than one? Each option shows price on the vertical axis…

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Question 9 · 1 mark · The allocation of resources - market economic system

Which combination correctly describes features of a market economic system? resource allocation ownership of land and capital --- --- --- A by government private sector B by…

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Question 10 · 1 mark · The individual as consumer, worker and borrower - spending, saving and borrowing

A country's central bank raised the rate of interest from 1% to 4% per year. How would this change have affected the amount saved and the cost of borrowing by individuals? amount…

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Question 11 · 1 mark · The individual as consumer, worker and borrower - choice of occupation

What is a non-wage factor influencing an individual's choice of occupation? A the availability of overtime work B the hourly rate of pay C the opportunity to get a financial bonus…

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Question 12 · 1 mark · The individual as consumer, worker and borrower - factors affecting wage differentials

Workers in the secondary sector of an economy earn more on average than workers in the tertiary sector. Which combination will most likely increase differences in wages between…

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Question 13 · 1 mark · The private firm as producer and employer - economies and diseconomies of scale

A manufacturing firm increases the scale of its production. Its average total cost (ATC) curve in the long run is shown below. The diagram shows cost on the vertical axis and…

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Question 14 · 1 mark · The private firm as producer and employer - demand for labour

What is most likely to increase the demand for labour in an industry? A a decrease in the price of capital used by the industry B a decrease in the productivity of labour in the…

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Question 15 · 1 mark · The private firm as producer and employer - costs of production

A firm has fixed costs of $100 for its daily output. The table shows its daily total variable costs. output (units) 1 2 3 4 --- --- --- --- --- total variable costs ($) 200 360…

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Question 16 · 1 mark · The private firm as producer and employer - monopoly and competitive markets

A market changes from being very competitive to being a monopoly. What is likely to happen to output and price in this market? output price --- --- --- A decrease decrease B…

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Question 17 · 1 mark · The role of government in an economy - macroeconomic aims (price stability)

What is the most likely reason for a government to aim for price stability? A to improve international competitiveness B to increase workers' wage demands C to reduce consumer…

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Question 18 · 1 mark · The role of government in an economy - unemployment and government finance

A country's unemployment rate increased from 3.6% to 4.2% in one year. What might be the consequences for tax revenues and welfare payments? tax revenues welfare payments --- ---…

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Question 19 · 1 mark · The role of government in an economy - taxation

In a country, some highly-paid workers reduce their working hours because of very high income tax rates at higher levels of income. What is a disadvantage of this income taxation?…

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Question 20 · 1 mark · The role of government in an economy - reasons for taxation

What is most likely to be a reason for taxing oil? A to conserve oil resources B to create employment C to encourage economic growth D to reduce oil prices

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Question 21 · 1 mark · Economic indicators - economic growth and recession

Brazil's real GDP fell by 3.8% in a year. What might have caused this? A a decrease in imports B a decrease in income tax C an increase in interest rates D an increase in output…

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Question 22 · 1 mark · Economic indicators - employment and unemployment

Factory owners invest in technologically-advanced industrial production by building new large-scale, energy-efficient factories. What is a negative consequence of this for local…

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Question 23 · 1 mark · Economic indicators - measurement of unemployment

Country X measures unemployment by counting the number of people claiming unemployment benefit. Why might this method underestimate the level of unemployment? A Some benefit…

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Question 24 · 1 mark · Economic indicators - inflation and deflation

What is likely to cause deflation? A higher employment B higher production costs C increased money supply D technological advances

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Question 25 · 1 mark · Economic development - poverty and policies to alleviate poverty

What is the most likely reason that an improved standard of education will alleviate poverty? A It will decrease the productivity of workers. B It will decrease the rate of…

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Question 26 · 1 mark · Economic development - population

What will increase a country's population, all other things being equal? A a rise in emigration B a rise in immigration C death rates higher than birth rates D decreased life…

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Question 27 · 1 mark · International trade and globalisation - specialisation and benefits of trade

Country Y decides to specialise in the domestic mining of rare metals required in the production of electric-car batteries. What is a likely benefit of this for country Y? A…

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Question 28 · 1 mark · International trade and globalisation - trade protection (tariffs)

The UK government increases the price of steel imported from Germany by increasing an existing tariff. Assuming steel has price-inelastic demand, what would be the effect on the…

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Question 29 · 1 mark · International trade and globalisation - foreign exchange rates

The table shows the value of the UK pound (£) against the US dollar ($) in June and September. June September --- --- £1 = $1.48 £1 = $1.32 What will be the likely consequence for…

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Question 30 · 1 mark · International trade and globalisation - current account of the balance of payments

The table shows a selection of economic data for a country. $m --- --- primary income 1000 secondary income -500 total value of exported goods 1000 total value of imported goods…

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