Microeconomic decision makers — IGCSE Economics (0455) questions by topic
Twenty-two questions cover wage discrimination across countries, how a change in interest rates affects saving and borrowing, why a firm becomes more capital-intensive, and economies of scale in transport infrastructure, worth between 0 and 20 marks.
Identify, calculate, define, explain and analyse test both precise definitions and applied reasoning about firms, workers and markets. Drawn from 2025 papers, these 22 questions include table-reading and calculation elements where this page's instant marking is especially useful, confirming whether a calculated figure, such as a wage gap or an interest-rate effect, matches the expected working.
May–June 2025, Paper 11
What is not a form of money? A a banknote B a cheque C a coin D a credit card
Answer this question and get it marked →If interest rates fall, what will be the most likely effect on saving and borrowing? saving borrowing --- --- --- A decrease decrease B decrease increase C increase decrease D…
Answer this question and get it marked →A bus driver initially works longer hours if the wage rate increases. As his earnings increase, there reaches a point when he prefers more leisure than extra work. Which supply…
Answer this question and get it marked →What is a function of a trade union? A to negotiate workers' contracts B to promote workers to more responsible jobs C to recruit workers for the firm D to supervise the workers…
Answer this question and get it marked →There has been an improvement in the transport infrastructure in India that reduces the costs of farming. What is this an example of? A external diseconomies of scale B external…
Answer this question and get it marked →A firm chooses to become more capital-intensive. What is least likely to have increased? A interest rates B minimum wages C the power of trade unions D the productivity of capital
Answer this question and get it marked →The diagram shows the average total costs (ATC) and average fixed costs (AFC) for a firm. The vertical axis is cost in $ (marked at 2, 6, 10, 14) and the horizontal axis is…
Answer this question and get it marked →May–June 2025, Paper 12
The table shows the average wage in four countries, A, B, C and D. In which country is there the greatest relative wage discrimination against female employees? male $ female $…
Answer this question and get it marked →The diagram shows the average total cost curve (ATC) for a firm after a merger. The diagram (costs on the vertical axis, output on the horizontal axis) shows a U-shaped average…
Answer this question and get it marked →A restaurant employs two chefs who make all of the meals that are served to customers. What is most likely to increase the productivity of the chefs? A a decrease in the number of…
Answer this question and get it marked →What are fixed costs? A costs that are divided by the amount produced B costs that are present when output is zero C costs that change according to the level of output D costs…
Answer this question and get it marked →The table shows the daily output and costs of four firms making chairs. Which firm has the highest average cost of production? output (units) fixed costs ($) variable costs ($)…
Answer this question and get it marked →The only information known about a firm is the price it charges for its product and the quantity it sells. What else can be concluded from this? A its average cost and profit B…
Answer this question and get it marked →If a very competitive market becomes a monopoly, what will be likely to increase and what will be likely to decrease? increase decrease --- --- --- A barriers to entry economies…
Answer this question and get it marked →May–June 2025, Paper 13
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…
Answer this question and get it marked →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…
Answer this question and get it marked →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…
Answer this question and get it marked →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…
Answer this question and get it marked →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…
Answer this question and get it marked →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…
Answer this question and get it marked →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…
Answer this question and get it marked →May–June 2025, Paper 23
As cities experience economic growth, the buildings in the city become taller. This is driven by an increase in the willingness and ability of consumers to live in tall buildings.…
Answer this question and get it marked →