GCSE ECONOMICS PRACTICE EXAM QUESTIONS AND
SOLUTIONS 2025/2026 GRADED A+
✔✔Enterprise/entrepreneurship - ✔✔Individuals who take the factors of production and
convert them into goods and services which can be sold for profit. The payment for
enterprise is profit.
✔✔Equilibrium price - ✔✔When demand for a good or service is equal to supply. When
a market is in equilibrium then the price is likely to be stable.
✔✔EU single market - ✔✔Refers to the European Union (EU) as one territory without
any internal borders or other regulatory obstacles to the free movement of goods and
services.
✔✔Excess demand - ✔✔Where quantity demanded of a good or service exceeds
supply, resulting in shortages and higher prices.
✔✔Excess supply - ✔✔Where quantity supplied of a good or service exceeds demand,
resulting in shortages and higher prices.
✔✔Exchange - ✔✔Where buyers and sellers come together in a market place to
negotiate prices.
✔✔Exchanges rates - ✔✔The value of a currency in terms of another. For example, £1
= $1.2
✔✔Exports - ✔✔Goods which are produced within a country and then sold abroad.
✔✔Factor markets - ✔✔The market for the factors of production; land, labour and
capital.
✔✔Financial economies of scale - ✔✔Firms being able to take advantage of lower
interest rates as a result of their increased size. (Large firms can often borrow at a lower
interest rate than smaller firms as they are considered a lower risk for lenders.)
✔✔Fiscal policy - ✔✔The use of government spending and taxation in order to
influences the level of demand within the Economy.
✔✔Fixed costs - ✔✔Costs which do not change with output for example rent for a shop
would be the same regardless of how many shoes it sold over the course of the month.
✔✔Free trade - ✔✔Trade that takes place without tariffs or other barriers.
, ✔✔Frictional unemployment - ✔✔This is caused by imperfect information where
workers are unable to find work for their skill set.
✔✔Full employment - ✔✔When all those who are fit, able and willing to work in the next
two weeks are employed.
✔✔Geographical immobility - ✔✔When workers are unable to move to new locations for
work.
✔✔Globalisation - ✔✔The process of growing economic integration between the world's
economies. Goods can be produced anywhere, sold anywhere and the profits stored
anywhere globally.
✔✔Goods - ✔✔Tangible or physical products.
✔✔Government - ✔✔The organisation regulating consumers and producers.
✔✔Government intervention - ✔✔When government attempts to influence markets in
order to correct market failure.
✔✔Government provision - ✔✔Where the government choses to provide a good or
service for free. For example, healthcare in the UK.
✔✔Gross domestic product - ✔✔The value of all goods and services produced within an
economy within one year
✔✔Gross domestic product per capita - ✔✔The value of goods and services produced
within and an economy within one year divided by the country's population.
✔✔Gross pay - ✔✔The pay given to an employee before taxes are deducted. It is the
sum of all pay.
✔✔Imports - ✔✔Goods which are produced abroad and then purchased in this country.
✔✔Income inequality - ✔✔An unequal distribution of income across the economy.
✔✔Incomes - ✔✔A flow of money. These can be from salaries, interest of dividends.
✔✔Indirect taxation - ✔✔Taxes on spending, examples of these would be excise duty
and value added tax.
✔✔Inequality - ✔✔The differences between those with higher levels of wealth/income
and those with lower.
SOLUTIONS 2025/2026 GRADED A+
✔✔Enterprise/entrepreneurship - ✔✔Individuals who take the factors of production and
convert them into goods and services which can be sold for profit. The payment for
enterprise is profit.
✔✔Equilibrium price - ✔✔When demand for a good or service is equal to supply. When
a market is in equilibrium then the price is likely to be stable.
✔✔EU single market - ✔✔Refers to the European Union (EU) as one territory without
any internal borders or other regulatory obstacles to the free movement of goods and
services.
✔✔Excess demand - ✔✔Where quantity demanded of a good or service exceeds
supply, resulting in shortages and higher prices.
✔✔Excess supply - ✔✔Where quantity supplied of a good or service exceeds demand,
resulting in shortages and higher prices.
✔✔Exchange - ✔✔Where buyers and sellers come together in a market place to
negotiate prices.
✔✔Exchanges rates - ✔✔The value of a currency in terms of another. For example, £1
= $1.2
✔✔Exports - ✔✔Goods which are produced within a country and then sold abroad.
✔✔Factor markets - ✔✔The market for the factors of production; land, labour and
capital.
✔✔Financial economies of scale - ✔✔Firms being able to take advantage of lower
interest rates as a result of their increased size. (Large firms can often borrow at a lower
interest rate than smaller firms as they are considered a lower risk for lenders.)
✔✔Fiscal policy - ✔✔The use of government spending and taxation in order to
influences the level of demand within the Economy.
✔✔Fixed costs - ✔✔Costs which do not change with output for example rent for a shop
would be the same regardless of how many shoes it sold over the course of the month.
✔✔Free trade - ✔✔Trade that takes place without tariffs or other barriers.
, ✔✔Frictional unemployment - ✔✔This is caused by imperfect information where
workers are unable to find work for their skill set.
✔✔Full employment - ✔✔When all those who are fit, able and willing to work in the next
two weeks are employed.
✔✔Geographical immobility - ✔✔When workers are unable to move to new locations for
work.
✔✔Globalisation - ✔✔The process of growing economic integration between the world's
economies. Goods can be produced anywhere, sold anywhere and the profits stored
anywhere globally.
✔✔Goods - ✔✔Tangible or physical products.
✔✔Government - ✔✔The organisation regulating consumers and producers.
✔✔Government intervention - ✔✔When government attempts to influence markets in
order to correct market failure.
✔✔Government provision - ✔✔Where the government choses to provide a good or
service for free. For example, healthcare in the UK.
✔✔Gross domestic product - ✔✔The value of all goods and services produced within an
economy within one year
✔✔Gross domestic product per capita - ✔✔The value of goods and services produced
within and an economy within one year divided by the country's population.
✔✔Gross pay - ✔✔The pay given to an employee before taxes are deducted. It is the
sum of all pay.
✔✔Imports - ✔✔Goods which are produced abroad and then purchased in this country.
✔✔Income inequality - ✔✔An unequal distribution of income across the economy.
✔✔Incomes - ✔✔A flow of money. These can be from salaries, interest of dividends.
✔✔Indirect taxation - ✔✔Taxes on spending, examples of these would be excise duty
and value added tax.
✔✔Inequality - ✔✔The differences between those with higher levels of wealth/income
and those with lower.
