OCR GCSE Economics Paper 1 2025”2026 REAL EXAM REVIEW 150
QUESTIONS AND CORRECT ANSWERS WITH RATIONALES COVERING
THE RECENT TESTED QUESTIONS PERFECT FOR A+ GRADE
1. What is the basic economic problem?
A. Unlimited resources
B. Unlimited wants and scarce resources ☑
C. Scarce wants and unlimited resources
D. Equal distribution of wealth
Rationale:
Economics studies how to allocate scarce resources to satisfy unlimited wants.
2. Which of the following is a factor of production?
A. Money
B. Labour ☑
C. Profit
D. Inflation
Rationale:
Factors of production include land, labour, capital, and enterprise. Money is not one.
3. Opportunity cost means:
A. The next best alternative forgone ☑
B. The total monetary cost
C. The benefit gained
D. The actual price paid
Rationale:
Opportunity cost is what must be given up to gain something else.
4. What does a production possibility frontier (PPF) show?
A. Prices in a market
B. The maximum possible output combinations ☑
C.
,You said:
INTERMIX THE TOPICS AS APPEAR ON ACTUAL EXAM
ChatGPT said:
Perfect — you want 50 OCR GCSE Economics Paper 1 exam-style questions,
topics intermixed (like in a real exam),
each with 4 options, correct answer marked, and short rationales.
Here’s your full, mixed-topic practice paper:
OCR GCSE Economics Paper 1 — 50 Practice Questions
(Topics: Introduction to Economics, Resource Allocation, Production, The Market, Government
Role, Consumers, Firms, etc.)
1. What is meant by opportunity cost?
A. The total spending of a government
B. The next best alternative forgone ☑
C. The money cost of production
D. A fixed cost of producing goods
Rationale: Every choice involves giving up the next best option — that’s opportunity cost.
2. Which of the following is not a factor of production?
A. Land
B. Labour
C. Money ☑
D. Capital
Rationale: Money is not productive itself; it helps acquire other factors.
3. A government increasing income tax is an example of:
A. Supply-side policy
B. Fiscal policy ☑
C. Monetary policy
D. Market policy
,Rationale: Fiscal policy involves government spending and taxation decisions.
4. What will happen if the price of petrol rises sharply?
A. The demand for cars increases
B. The demand for petrol increases
C. The demand for public transport increases ☑
D. Petrol becomes a substitute for diesel
Rationale: Petrol and public transport are substitutes; higher petrol prices boost public
transport demand.
5. A market is in equilibrium when:
A. Demand exceeds supply
B. Supply exceeds demand
C. Price is stable ☑
D. The government fixes prices
Rationale: Equilibrium occurs where demand equals supply — prices are stable.
6. A fall in the cost of production will shift the supply curve:
A. Left
B. Right ☑
C. Downward
D. Upward
Rationale: Lower costs encourage firms to produce more, shifting supply rightward.
7. A PPF (Production Possibility Frontier) shows:
A. Changes in demand over time
B. The maximum output combinations an economy can produce ☑
C. Levels of government spending
D. Firms’ profit levels
Rationale: PPFs illustrate efficiency, opportunity cost, and trade-offs in production.
, 8. Which statement is a normative statement?
A. Unemployment is 5%
B. Inflation increased by 2%
C. The government should reduce inflation ☑
D. GDP rose last year
Rationale: Normative statements involve opinions or value judgments.
9. When demand for a good rises as income rises, it is called:
A. An inferior good
B. A substitute good
C. A normal good ☑
D. A complementary good
Rationale: Normal goods have a positive relationship between income and demand.
10. The purpose of an entrepreneur is to:
A. Reduce costs
B. Organise production and take risks ☑
C. Provide capital
D. Control inflation
Rationale: Entrepreneurs combine resources and accept risk for potential profit.
11. Which of the following best describes market failure?
A. When markets allocate resources efficiently
B. When markets fail to allocate resources efficiently ☑
C. When government intervention fails
D. When prices rise rapidly
Rationale: Market failure occurs when free markets produce inefficient outcomes.
12. What type of unemployment results from workers lacking the right skills?
A. Seasonal
B. Cyclical
QUESTIONS AND CORRECT ANSWERS WITH RATIONALES COVERING
THE RECENT TESTED QUESTIONS PERFECT FOR A+ GRADE
1. What is the basic economic problem?
A. Unlimited resources
B. Unlimited wants and scarce resources ☑
C. Scarce wants and unlimited resources
D. Equal distribution of wealth
Rationale:
Economics studies how to allocate scarce resources to satisfy unlimited wants.
2. Which of the following is a factor of production?
A. Money
B. Labour ☑
C. Profit
D. Inflation
Rationale:
Factors of production include land, labour, capital, and enterprise. Money is not one.
3. Opportunity cost means:
A. The next best alternative forgone ☑
B. The total monetary cost
C. The benefit gained
D. The actual price paid
Rationale:
Opportunity cost is what must be given up to gain something else.
4. What does a production possibility frontier (PPF) show?
A. Prices in a market
B. The maximum possible output combinations ☑
C.
,You said:
INTERMIX THE TOPICS AS APPEAR ON ACTUAL EXAM
ChatGPT said:
Perfect — you want 50 OCR GCSE Economics Paper 1 exam-style questions,
topics intermixed (like in a real exam),
each with 4 options, correct answer marked, and short rationales.
Here’s your full, mixed-topic practice paper:
OCR GCSE Economics Paper 1 — 50 Practice Questions
(Topics: Introduction to Economics, Resource Allocation, Production, The Market, Government
Role, Consumers, Firms, etc.)
1. What is meant by opportunity cost?
A. The total spending of a government
B. The next best alternative forgone ☑
C. The money cost of production
D. A fixed cost of producing goods
Rationale: Every choice involves giving up the next best option — that’s opportunity cost.
2. Which of the following is not a factor of production?
A. Land
B. Labour
C. Money ☑
D. Capital
Rationale: Money is not productive itself; it helps acquire other factors.
3. A government increasing income tax is an example of:
A. Supply-side policy
B. Fiscal policy ☑
C. Monetary policy
D. Market policy
,Rationale: Fiscal policy involves government spending and taxation decisions.
4. What will happen if the price of petrol rises sharply?
A. The demand for cars increases
B. The demand for petrol increases
C. The demand for public transport increases ☑
D. Petrol becomes a substitute for diesel
Rationale: Petrol and public transport are substitutes; higher petrol prices boost public
transport demand.
5. A market is in equilibrium when:
A. Demand exceeds supply
B. Supply exceeds demand
C. Price is stable ☑
D. The government fixes prices
Rationale: Equilibrium occurs where demand equals supply — prices are stable.
6. A fall in the cost of production will shift the supply curve:
A. Left
B. Right ☑
C. Downward
D. Upward
Rationale: Lower costs encourage firms to produce more, shifting supply rightward.
7. A PPF (Production Possibility Frontier) shows:
A. Changes in demand over time
B. The maximum output combinations an economy can produce ☑
C. Levels of government spending
D. Firms’ profit levels
Rationale: PPFs illustrate efficiency, opportunity cost, and trade-offs in production.
, 8. Which statement is a normative statement?
A. Unemployment is 5%
B. Inflation increased by 2%
C. The government should reduce inflation ☑
D. GDP rose last year
Rationale: Normative statements involve opinions or value judgments.
9. When demand for a good rises as income rises, it is called:
A. An inferior good
B. A substitute good
C. A normal good ☑
D. A complementary good
Rationale: Normal goods have a positive relationship between income and demand.
10. The purpose of an entrepreneur is to:
A. Reduce costs
B. Organise production and take risks ☑
C. Provide capital
D. Control inflation
Rationale: Entrepreneurs combine resources and accept risk for potential profit.
11. Which of the following best describes market failure?
A. When markets allocate resources efficiently
B. When markets fail to allocate resources efficiently ☑
C. When government intervention fails
D. When prices rise rapidly
Rationale: Market failure occurs when free markets produce inefficient outcomes.
12. What type of unemployment results from workers lacking the right skills?
A. Seasonal
B. Cyclical
