About this guide

This guide explains what you need to know about your Cambridge Economics course and examinations. It will help you to:

understand what skills you should develop by taking this IGCSE course
understand how you will be assessed
understand what we are looking for in the answers you write
plan your revision programme
revise, by providing revision tips and an interactive revision checklist (Section 6).

Section 1: Syllabus content

Find out what topics you will be learning about. Your teacher can give you more detail.

Section 2: How you will be assessed

Find out

how many examinations you will take
how long each examination lasts
what different question types the examination will contain
how to tackle each examination.

Section 3: What skills will be assessed

Find out what areas of knowledge, understanding and skills you will need to demonstrate throughout the course and in your examinations.

Section 4: Command words

Take a look at the command words you can find in the examination questions, and what they mean.

Section 5: Example candidate responses

Take a look at a learner’s response taken from a real examination. Find out:

how to interpret the question
how to avoid common mistakes
how to improve your exam technique.

Section 6: Revision

Discover:

some ‘top revision tips’
revision checklist for each topic.

Section 1: Syllabus content – what you need to know about

This section gives you an outline of the syllabus content for this course. The six sections differ in the extent of their coverage, Sections 2 and 4 include the most topics. Ask your teacher for more detail about each topic. You can also find more detail in the Revision checklists of this guide.

Section 2: How you will be assessed

You will be assessed at the end of the course using two papers:

Paper 1 Multiple Choice
Paper 2 Structured Questions

Components at a glance

This table summarises the key information about each examination paper.

About each paper

Paper 1

Paper 1 covers the whole syllabus. Each of the 30 multiple-choice questions is worth one mark. Some of the questions include diagrams, for example, questions 1, 5, 13, 24 and 29 on the specimen paper, and other question include tables of data, for example, questions 14, 18 and 22 .You may also be required to carry out calculations such as in question 29. There is an average of one and a half minutes available for each question. You will be able to answer the more straightforward questions in less time, for example, question15 and 26, while the more challenging ones, such as question 22 and 30, will take slightly longer. Check all the options carefully. If you are finding a question difficult, leave it and come back to it. It is important that you answer all the questions. There are no marks deducted for incorrect answers, so if you do not know the answer, guess.

Paper 2

Paper 2 covers the whole syllabus. You have to answer the first question. This is worth 30 marks and is based on source material. It is useful to read the approximately six to eight question parts first and then read the source material so that you know what you are looking for from the source material. It is best to answer the question parts in order, as they tend to increase in terms of learning objectives.

You may be asked to carry out a calculation. If this is the case, it is advisable to show your workings. This is because if more than one mark is awarded for the correct answer, you may be able to gain a mark for the right working even if you make a miscalculation.

Pay careful attention to the command words and the marks awarded. For example, if a question part asks you to identify two economic good from the stimulus material, and awards two marks, just state them. Do not waste time explaining them, you will not gain any more marks.

The last two question parts, worth 6 marks each, will require you to ‘discuss’. You will need to answer these two questions in some depth, considering both sides of the issues involved.

It is advisable to spend 45 minutes answering the first question and half an hour each on the three optional questions, you select. Choose your optional questions carefully. You might think that you can write strong answers to question 2(a) and question 2(b) but are unsure how to answer question 2(c) and question 2(d). In contrast, you may not know the answer to question 3(a) and might only be able to explain one rather than two reasons in question 3(b). Nevertheless, if you think you could provide strong answers to 3(c) and 3(d), it would be better to select question 3 than question 2.

Part (a) questions

Part (a) of each optional question is worth 2 marks. This part should be answered briefly. What is important is accuracy and precision. For example, in answering question 2(a) an answer such as ‘a budget deficit is too much spending’ is too vague and would not gain any marks.

Part (b) questions

Part (b) is worth 4 marks and requires you to explain. If you are asked to explain, for example, two reasons, do not waste time explaining three reasons. Make sure that the explanation that you give makes clear how or why, for instance the supply of bananas may decrease (question 3(b).

Part (c) questions

Part (c) is worth 6 marks and you have to analyse. This involves providing links between points. When answering this question part, you should again bear in mind the words ‘how’ and ‘why’. For instance, in answering question 2(c) on the specimen paper, you need to analyse, in some depth, how a fall in unemployment may increase a country’s inflation rate. In question 3(c) you need to make clear why an MNC may produce in particular countries.

You need to devote the greatest amount of time to the last question part, part (d). This part requires you to consider two sides of a question. For instance, in answering question 2(d) you should explore the advantages and disadvantages a country may gain from the emigration of some of its people. It is important that you explain the points you make. For instance. It is not enough to state that emigration may result in a fall in output. You would need to explain that the people who emigrate might have been workers, producing goods and services.

Revising for the examination

Revision is a continuous process, something you should be doing throughout your course. Multiple-choice questions are a good way to review your understanding and reinforce your learning. There is a wide range of multiple choice questions available including those on past papers, in textbooks and online.

Practising answering structured questions is also a useful revision method. You can answer question parts on a particular topic after you have completed it.

Section 3: What skills will be assessed

The areas of knowledge, understanding and skills that you will be assessed on are called assessment objectives (AOs).

The table below explains what each assessment objective means and what percentage of the whole qualification is assessed using that objective. Your teacher will be able to give you more information about how each of the assessment objectives are tested in each component.

Weighting for assessment objectives

It is important that you know the different weightings (%) of the assessment objectives, as this affects how the examiner will assess your work.

Knowledge and understanding has a weighting of 50% on Paper 1 and 35% on Paper 2. Analysis has a weighting of 50% on Paper 1 and 35% on Paper 2. Evaluation has a weighting of 30% on Paper 2 but is not assessed on Paper 1.

The approximate weightings of the assessment objectives (AOs) are summarised below.

Assessment objectives as a percentage of each component

Assessment objectives as a percentage of the qualification

Section 4: Command words

The table below includes command words used in the assessment for this syllabus. The use of the command word will relate to the subject context.

Section 5: Example candidate response

This section takes you through an example question and answer from a Cambridge IGCSE Economics specimen paper. It will help you to see how to identify command words within questions and to understand what is required in your response. A command word is the part of the question that tells you what you need to do with your knowledge. For example, you might need to describe something, explain something, argue a point of view or list what you know.

All information and advice in this section is specific to the example question and answer being demonstrated. It should give you an idea of how your responses might be viewed by an examiner but it is not a list of what to do in all questions. In your own examination, you will need to pay careful attention to what each question is asking you to do.

This section of the guide includes:

5.1 Question

The question used in this example is question 3 from Paper 2. Now let’s look at the question to see what the command words for this question mean for your answer.

5.2 Mark scheme

5.3 Example candidate response

5.4 How the answer could have been improved

The candidate could also have considered the possible effects that a subsidy could have on the quality of fruit grown. In addition, the candidate could have developed the point about making people healthier by considering the merit good nature of fruit.

5.5 Common mistakes

Q3(a) Candidates often confuse maximum and minimum prices. A number of candidates devote too much time to the first question part. In this case, some candidates might have mentioned that a maximum price would only have an impact on the market if it is set below the equilibrium price. This is correct but is not needed in a definition.

Q3(b) When asked to explain why supply may decrease, candidates often refer to a fall in price. Such a change in price would cause a contraction in supply rather than a decrease in supply.

Q3(c) Some candidates when asked questions about MNCs, concentrate on the effects of the presence of MNCs on their host countries even if that is not the specific focus of the question.

Q3(d) The question is about a subsidy to producers but some candidates may confuse this with a subsidy to consumers and write about an increase in demand causing price to rise.

Some common mistakes include:

Not preparing for the examination. To do well you have to work throughout your course and to undertake good quality revision.
Giving imprecise definitions. Some candidates rush definitions and others do use economic terminology in their answers.
Confusing economic terms and concepts. There are a number of terms including investment and saving that some candidates confuse.
Stating rather than explaining points in questions that require explanation, analysis and evaluation.
Jumping links. Some candidates do seek to explain but miss out some of the links..
Not answering the specific question. Some candidates lose focus in their answers. In some cases, candidates, try turn the question into one they would like to answer. Others start by answering the question and then wander off the central focus of the question.

General advice

To do well in answering a question, make sure that you:

Read questions carefully, noting the command words.
Allocate your time appropriately. For example, do not spend too much time on the low mark questions.
Use economic terminology.
Answer the actual questions set.
Be flexible in your thinking so that you can apply your knowledge and understanding to questions you have not seen before.
Support the statements you make in the explanation, analysis and evaluation questions.
Indicate which question parts you are answering.
Write clearly so that the examiner can read your answers.

Section 6: Revision

This advice will help you revise and prepare for the examinations. It is divided into general advice for all papers and more specific advice for Paper 1 and Paper 2.

Use the tick boxes☐ to keep a record of what you have done, what you plan to do or what you understand.

General advice

Before the examination

☐ Find out when the examinations are and plan your revision so you have time to revise. Create a revision timetable and divide it into sections to cover each topic.

☐ Find out how long each paper is, how many questions you have to answer, how many marks there are for each question, and work out how long you have for each question.

☐ Find out the choices you have on each paper, make sure you know how many sections there are and which sections you should answer from.

☐ When there is a choice of questions in a section, make sure you revise enough to have a choice.

☐ Know the meaning of the command words used in questions and how to apply them to the information given. Look at past examination papers and highlight the command words and check what they mean.

☐ Make revision notes. Try different styles of notes.

☐ Work for short periods then have a break. Revise small sections of the syllabus at a time.

☐ Test yourself by writing out key points, redrawing diagrams, etc.

☐ Make sure you define, economic terms accurately. For example, demand is not simply ‘wanting something’, it is ‘the willingness and ability to buy a product’.

☐ Definitions must not reuse the words to be defined. For example, no marks would be gained for writing that a state- owned enterprise is ‘an enterprise that is owned by the state.’ Two marks, however, would be awarded for ‘a firm owned by the government.’

☐ Make your own dictionary or draw up a glossary of key terms for each section of the syllabus.

☐ Look at diagrams, tables, etc. to find out what they show; e.g., recognising the relationships between real GDP and investment, understanding why the price of a product has risen.

☐ Practise drawing clear, accurate, fully-labelled diagrams and maps.

☐ Learn to spell economic terms correctly.

☐ Have a look at past questions so that you are clear of what to expect in an examination.

☐ Look at mark schemes to help you to understand how the marks are awarded for each question.

In the examination

☐ Read the instructions carefully and answer the right number of questions from the right sections.

☐ Do not answer more questions than are needed, as this will not gain you more marks in the examination.

☐ Plan your time according to the marks for each question. For example, a question worth three marks requires less time and a shorter answer than one worth 10 marks. If a question has several parts, then the parts with more marks will need more time and more developed answers.

☐ Do not leave out questions or parts of questions. Remember, no answer means no mark.

☐ Read each question very carefully.

Identify the command words – you could underline or highlight them.
Identify the other key words and perhaps underline them too.
Try to put the question into your own words to understand what it is really asking.

☐ Read all parts of a question before starting your answer. Think carefully about what is needed for each part. You will not need to repeat material.

☐ Look very carefully at the resource material you are given.

Read the title, key, axes of graphs, etc. to find out exactly what it is showing you.
Look for dates, scale, and location.
Try using coloured pencils or pens to pick out anything that the question asks you about.

☐ Answer the question. This is very important!
Use your knowledge and understanding.
Do not just write all you know, only write what is needed to answer the question.

☐ Plan your answers to the higher mark questions. Clear, concise, well-ordered, well-argued, well-supported answers get more marks than long, rambling, muddled, repetitious answers. Quality is better than quantity.

☐ Use economic terms in your answers.

☐ Use the resource material given in the question to support your answer.

☐ Explain any diagrams you draw to support your answer..

☐ Make sure your writing is clear and easy to read. It is no good writing a brilliant answer if the examiner cannot read it!

Paper 1 advice

☐ Practise multiple-choice questions on each topic when you have completed it.

☐ Ensure you have a pencil, rubber and calculator with you during the examination.

☐ Read each question carefully. A question, for instance, may ask you which policy measure is not a monetary policy measure, In this case, a rise in the interest rate would be an incorrect option whereas a rise in a sales tax would be right.

☐ In some cases, a correct option may stand out clearly. In other cases, you may need to eliminate the three incorrect options to arrive at the correct one.

☐ Sometimes it may be useful to draw a diagram to help you to determine the correct answer.

☐ If you are finding a question difficult, leave it and come back to it.

☐ If you change your mind over an answer, firmly rub out the lozenge you have selected and enter a new lozenge.

☐ Do not leave any question unanswered, If necessary guess as you have a 25% chance of getting it right.

Paper 2 advice

☐ Practise answering structured questions before the examination, including under test conditions.

☐ Ensure you have two black pens, aa pencil, a rubber, a ruler and a calculator with you during the examination.

☐ Read the questions carefully, including the command words.

☐ Consider what economics can be applied in answering the questions.

☐ Make sure you make use of the source material in your answers to the first question.

☐ Select the three optional questions carefully. Consider each of the question parts of each optional question.

☐ Do not answer all the optional questions. The marks for only three optional questions will be taken into account. Answering four optional questions would reduce the amount of time you could devote to three questions.

☐ Read the stimulus material that appears at the start of the optional questions. The stimulus material puts the questions in context and is likely to reduce your chances of misinterpreting a particular term.

☐ It is useful to answer the question parts in order as the skill levels rise.

☐ Use a ruler and a pencil to draw diagrams. A ruler will make your diagrams neater and using a pencil will enable you to correct mistakes.

☐ Label diagrams and make them a reasonable size – one quarter to one third of a page in size.

☐ It is useful to devote a paragraph to each major point.

☐ If a question asks you about a specific product, policy or situation, relate your answer to the example given.

☐ Answer the specific question set. Advice that are not relevant will not only earn no marks, they also waste valuable times.

☐ It is often useful to include real world examples in answers. These can be drawn from your own country.

Revision checklists

In the next part of this guide we have provided some revision checklists. These include information from the syllabus that you should revise. They don’t contain all the detailed knowledge you need to know, just an overview. For more detail see the syllabus and talk to your teacher.

The table headings are explained below: