IGCSE Economics O Level

Table of contents

Assessment

Paper 1 (45 minutes) (30%)

Multiple Choice

30 marks

Candidates answer all 30 questions

Externally assessed

Paper 2 (2 hours 15 minutes) (70%)

Structured Questions

90 marks

Candidates answer one compulsory question and three questions from a choice of four.

Externally assessed

Chapter 3: Opportunity cost

Define opportunity cost: The (next) best alternative / choice forgone / sacrificed

Chapter 7: Demand

To save time and for the sake of clarity, economists also often draw demand curves as straight lines but they are still referred to as curves!

Chapter 13: Market economic system

Market can be divided into

• Private sector

• Public sector

Chapter 16: Money And Bank

2 ways to borrow money from bank

• Overdraft

• Loan

Chapter 17: Household

Average propensity to consume (APC) = Consumption /  Disposable income

Chapter 30: Employment and unemployment

Possible causes of an increase in the size of a country’s labour force.

• Change in the birth rate rise will mean more people of working age in the long run / fall will enable more parents to be in the labour force.

• Immigration; many immigrants are of working age.

• Rise in retirement age; people will work for longer.

• Fall in school leaving age; people will be in education for a shorter period.

• Fall in the death rate / rise in life expectancy; fewer people dying before reaching retirement age.

• Changes in social culture; allowing more women to work.

• Increase in size of population of working age.

• Rise in wage levels attracts people to re-enter the labour market.

Chapter 31: Inflation & Deflation

Inflation is the increase in the average price level of goods and services over time. 

Example of inflation: 

Let’s say you enjoy a scoop of ice cream that used to cost $2. Now, when you go to the ice cream shop, the same scoop costs $3. You need more money to buy the same ice cream because of inflatio

Chapter 34: Population

Why death rates may vary between countries.

Possible reason:

•  income / standard of living

•  healthcare

•  education

•  nutrition

•  lifestyles / suicide rates

•  average age

•  spread of Covid / infectious diseases

•  war / conflict

•  natural disasters

•  air pollution / water pollution

•  conditions of work

•  level of crime

Chapter 39: Current account of balance of payments

How an increase in labour productivity in a  country can increase a surplus on the current account of its balance of payments.

• Output per worker (hour) increases may reduce average cost of production lower prices may increase the quality of exports.

• These changes may increase international competitiveness of exports / make exports cheaper demand for exports may increase export revenue may rise.

• Higher relative prices of imports lower relative quality of imports these changes may decrease international competitiveness of imports demand for imports may decrease import expenditure may fall.

• Output increases allowing more exports and less imports.

Text Book

Economics Paper 1 (MCQ) Quiz