IGCSE Economics-0455 Handbook 

Cambridge IGCSE is the world’s most popular international qualification for 14 to 16 year olds, although it can be taken by students of other ages. It is tried, tested and trusted.

Students can choose from 70 subjects in any combination – it is taught by over 4800 schools in over 150 countries.

Cambridge IGCSE Economics is accepted by universities and employers as proof of knowledge and understanding of

economics. 

Successful Cambridge IGCSE Economics candidates gain lifelong skills, including:

• an understanding of economic theory, terminology and principles

• the ability to apply the tools of economic analysis

• the ability to distinguish between facts and value judgements in economic issues

• an understanding of, and an ability to use, basic economic numeracy and literacy

• the ability to take a greater part in decision-making processes in everyday life

• an ability to use examples from a variety of economies

• an excellent foundation for advanced study in economics.

Our programmes balance a thorough knowledge and understanding of a subject and help to develop the skills learners need for their next steps in education or employment.

1     The basic economic problem

     The first section of the syllabus introduces the fundamental ideas and concepts that underpin the study of economics including the basic economic problem, factors of production, opportunity cost and production possibility curves.

2  The allocation of resources

     The fundamental principles of resource allocation are considered through the price mechanism in a market economy. The market forces of demand and supply, market equilibrium and disequilibrium, and elasticity form the core of this section.

3  Microeconomic decision makers

     The micro economy is an important area of study, and the approach to learning taken here is through the role of the major decision makers: banks, households, workers, trade unions and firms.

4 Government and the macro economy

     Governments have different macroeconomic aims, and conflicts often arise between the choice of measures used to achieve them. Variables must be   measured to consider the causes and consequences of change, and appropriate policies applied.

5  Economic development

     As an economy develops there will be changes in population, living standards, poverty and income redistribution. Therefore, the effects of changes in the size and structure of population and of other influences on development in a variety of countries are explored.

6  International trade and globalisation

     The importance of trade between countries and the growth of globalisation is explored. Principles such as specialisation, the role of free trade, the role of multinational companies, foreign exchange rates and balance of payments stability are considered.

Paper 1 – Multiple Choice

Multiple-choice paper, 45 minutes, 30 marks

Candidates answer all 30 multiple-choice questions. Candidates indicate their answers on the multiple choice

answer sheet provided. The questions are based on all six sections of the syllabus content. The questions may

include calculations.

Calculators may be used in the examination.

The paper assesses the following assessment objectives:

AO1: Knowledge and understanding

AO2: Analysis

Paper 2 – Structured Questions

Written paper, 2 hours 15 minutes, 90 marks

Candidates answer one compulsory question in Section A and three questions from a choice of four in Section B.

Candidates write their answers in the answer booklet provided.

Candidates should be aware of the marks for each part question. These are printed on the question paper.

Candidates should use them as a guide to the amount of detail and length of response expected and to help them

manage their time effectively.

Calculators may be used in both sections of the examination.

Section A

Candidates answer one compulsory question (30 marks), which requires them to interpret and analyse previously

unseen source material relevant to a real economic situation. The question has part questions. Each part question

is based on one or more topics drawn from the syllabus content. The part questions require short and extended

responses, based on the source information provided and may include calculations and diagrams. The source

material contains written text and may contain diagrammatic or tabular information. Candidates must refer to this

source material.

Section B

Candidates answer three questions from a choice of four. Each question is worth 20 marks and has four part

questions. Each part question is based on one or more topics drawn from the syllabus content. The questions

require short and extended responses, and may include calculations and diagrams. Each question is introduced by

stimulus material. The stimulus gives the question context. Candidates may refer to this material and/or to other

examples that they have studied.

The paper assesses the following assessment objectives:

AO1: Knowledge and understanding

AO2: Analysis

AO3: Evaluation

Economics Specimen Papers and Mark Scheme