Cambridge International General Certificate of Secondary Education
0455 Economics March 2025
Principal Examiner Report for Teachers
ECONOMICS
Paper 0455/12
Multiple Choice
Question Question Question
Key Key Key
Number Number Number
1 D 11 C 21 C
2 C 12 D 22 D
3 A 13 B 23 D
4 A 14 B 24 D
5 C 15 C 25 B
6 B 16 C 26 B
7 D 17 A 27 B
8 D 18 B 28 A
9 B 19 B 29 A
10 B 20 B 30 C
Key messages
To earn a high mark on this paper, students need to demonstrate a wide-ranging understanding of the topics
covered in the syllabus. The depth of understanding is particularly important when questions involve
interpreting graphical, numerical, or diagram-based data, as the general topic may be known, but the context
in which it appears is likely to be unfamiliar. This is shown by the fact that 3 of the 5 questions that
candidates performed least well on involved the application of numeracy skills alongside economic
knowledge. Careful reading of each question is essential, and students should also pay close attention to
instructions and especially to any text that is highlighted or in bold before choosing their answer.
General comments
The questions for which most candidates selected the correct answer were 2, 4, 9, 12, and 26. These
questions covered different parts of the syllabus and were set to test a range of different skills.
The questions for which the fewest candidates selected the correct answer were 7, 14, 20, 27, and 30.
© 2025
, Cambridge International General Certificate of Secondary Education
0455 Economics March 2025
Principal Examiner Report for Teachers
Comments on specific questions
Question 7
Question 7 was answered correctly by 45 per cent of the candidates who chose option D. 28 per cent chose
option B, 19 per cent chose option A and 8 per cent chose option C. When demand is price elastic (PED = –
2.0) a decrease in price will lead to a proportionally larger increase in quantity demanded and an increase in
total revenue. 45 per cent of candidates realised this. 28 per cent of candidates incorrectly thought that
demand (rather than quantity demanded) would increase by 5 per cent; this could have been the case if the
PED = 0.5. 19 per cent of candidates incorrectly thought that demand (rather than quantity demanded) would
decrease by 20 per cent, demand would not decrease when prices decreased. 8 per cent of candidates
incorrectly believed that supply was independent of this change in the market. However, when the quantity
demanded changes, there will be an associated shift in supply to the new equilibrium price.
Question 14
Question 14 was answered correctly by 50 per cent of the candidates who chose option B. 27 per cent
chose option D, 14 per cent chose option A and 9 per cent chose option C. The output per worker before
specialisation was 5 cars, after specialisation the output per worker was 10 cars ( = 10). Therefore,
labour productivity doubled from 5 cars to 10 cars: this is an increase of 100 per cent. 27 per cent of
candidates misread the information and thought the total cars washed increased from 5 to 30 and then saw
this as a 600 per cent increase in productivity. 14 per cent of candidates saw an increase in cars washed of
15 to 30 in a day as a 50 per cent increase, presumably because the increase of 15 is 50 per cent of the new
total of 30. 9 per cent of candidates saw an increase in cars washed of 15 to 30 in a day as a 200 per cent
increase, presumably because of the doubling of the number of cars washed.
Question 20
Question 20 was answered correctly by 39 per cent of the candidates who chose option B. 42 per cent
chose option A, 16 per cent chose option D and 4 per cent chose option C. The data is in millions of workers.
This allows us to calculate the number of workers employed in the primary, secondary, and tertiary sectors in
each year of a two-year period. In year 1 there were 11 million people employed in the secondary sector
(engineering 6 m and motor vehicle production 5 m). In year 2 this had increased to 13 million people
(engineering 8 m and motor vehicle production 5 m). Thus, fewer people were employed in the secondary
sector in year 1 than year 2 and option B is correct. 42 per cent incorrectly chose option A, misreading the
data in the table as output produced rather than the number of workers employed. 16 per cent of candidates
miscalculated the number of workers employed in the tertiary sector to be more in year 2 than year 1. In year
1 the total was 16 m (education 4 m, finance 8 m, and healthcare 4 m) whilst in year 2 there were fewer at
14 m (education 3 m, finance 6 m, and healthcare 5 m). 4 per cent of candidates miscalculated the number of
workers employed in the primary sector to be more in year 2 than year 1. In year 1, the total was 4 m
(farming 2 m, oil extraction 2 m) whilst in year 2 there were fewer at 3 m (farming 1 m, oil extraction 2 m).
Question 27
Question 27 was answered correctly by 38 per cent of the candidates who chose option B. 25 per cent
chose option D, 22 per cent chose option C and 15 per cent chose option A. 38 per cent of candidates
realised option B is not an acceptable reason in support of producing a wider range of goods. Decreased
specialisation will reduce not increase the benefit of free trade. 25 per cent incorrectly chose option D.
Volatility in the price of oil is an acceptable reason in support of producing a wider range of goods.
Avoidance of uncertainty in the price of a specialised product is an acceptable reason to diversify. 22 per
cent incorrectly chose option C. Avoiding dependence on other countries is an acceptable reason in support
of producing a wider range of goods. Avoiding reliance on other countries for vital goods and services is an
acceptable reason to diversify. 15 per cent incorrectly chose option A. Avoiding the rapid depletion of a non-
renewable resource is an acceptable reason in support of moving to produce a wider range of goods.
Question 30
Question 30 was answered correctly by 37 per cent of the candidates who chose option C. 27 per cent
chose option A, 23 per cent chose option B and 12 per cent chose option D. 38 per cent of candidates
correctly realised that increasing existing import quotas would allow a greater quantity of imports into the
country. This would increase the value of imports relative to exports and so reduce the current account
surplus on its balance of payments. 27 per cent incorrectly selected option A making a common mistake of
thinking the current account of the balance of payments is part of the government’s financial position. 23 per
© 2025
0455 Economics March 2025
Principal Examiner Report for Teachers
ECONOMICS
Paper 0455/12
Multiple Choice
Question Question Question
Key Key Key
Number Number Number
1 D 11 C 21 C
2 C 12 D 22 D
3 A 13 B 23 D
4 A 14 B 24 D
5 C 15 C 25 B
6 B 16 C 26 B
7 D 17 A 27 B
8 D 18 B 28 A
9 B 19 B 29 A
10 B 20 B 30 C
Key messages
To earn a high mark on this paper, students need to demonstrate a wide-ranging understanding of the topics
covered in the syllabus. The depth of understanding is particularly important when questions involve
interpreting graphical, numerical, or diagram-based data, as the general topic may be known, but the context
in which it appears is likely to be unfamiliar. This is shown by the fact that 3 of the 5 questions that
candidates performed least well on involved the application of numeracy skills alongside economic
knowledge. Careful reading of each question is essential, and students should also pay close attention to
instructions and especially to any text that is highlighted or in bold before choosing their answer.
General comments
The questions for which most candidates selected the correct answer were 2, 4, 9, 12, and 26. These
questions covered different parts of the syllabus and were set to test a range of different skills.
The questions for which the fewest candidates selected the correct answer were 7, 14, 20, 27, and 30.
© 2025
, Cambridge International General Certificate of Secondary Education
0455 Economics March 2025
Principal Examiner Report for Teachers
Comments on specific questions
Question 7
Question 7 was answered correctly by 45 per cent of the candidates who chose option D. 28 per cent chose
option B, 19 per cent chose option A and 8 per cent chose option C. When demand is price elastic (PED = –
2.0) a decrease in price will lead to a proportionally larger increase in quantity demanded and an increase in
total revenue. 45 per cent of candidates realised this. 28 per cent of candidates incorrectly thought that
demand (rather than quantity demanded) would increase by 5 per cent; this could have been the case if the
PED = 0.5. 19 per cent of candidates incorrectly thought that demand (rather than quantity demanded) would
decrease by 20 per cent, demand would not decrease when prices decreased. 8 per cent of candidates
incorrectly believed that supply was independent of this change in the market. However, when the quantity
demanded changes, there will be an associated shift in supply to the new equilibrium price.
Question 14
Question 14 was answered correctly by 50 per cent of the candidates who chose option B. 27 per cent
chose option D, 14 per cent chose option A and 9 per cent chose option C. The output per worker before
specialisation was 5 cars, after specialisation the output per worker was 10 cars ( = 10). Therefore,
labour productivity doubled from 5 cars to 10 cars: this is an increase of 100 per cent. 27 per cent of
candidates misread the information and thought the total cars washed increased from 5 to 30 and then saw
this as a 600 per cent increase in productivity. 14 per cent of candidates saw an increase in cars washed of
15 to 30 in a day as a 50 per cent increase, presumably because the increase of 15 is 50 per cent of the new
total of 30. 9 per cent of candidates saw an increase in cars washed of 15 to 30 in a day as a 200 per cent
increase, presumably because of the doubling of the number of cars washed.
Question 20
Question 20 was answered correctly by 39 per cent of the candidates who chose option B. 42 per cent
chose option A, 16 per cent chose option D and 4 per cent chose option C. The data is in millions of workers.
This allows us to calculate the number of workers employed in the primary, secondary, and tertiary sectors in
each year of a two-year period. In year 1 there were 11 million people employed in the secondary sector
(engineering 6 m and motor vehicle production 5 m). In year 2 this had increased to 13 million people
(engineering 8 m and motor vehicle production 5 m). Thus, fewer people were employed in the secondary
sector in year 1 than year 2 and option B is correct. 42 per cent incorrectly chose option A, misreading the
data in the table as output produced rather than the number of workers employed. 16 per cent of candidates
miscalculated the number of workers employed in the tertiary sector to be more in year 2 than year 1. In year
1 the total was 16 m (education 4 m, finance 8 m, and healthcare 4 m) whilst in year 2 there were fewer at
14 m (education 3 m, finance 6 m, and healthcare 5 m). 4 per cent of candidates miscalculated the number of
workers employed in the primary sector to be more in year 2 than year 1. In year 1, the total was 4 m
(farming 2 m, oil extraction 2 m) whilst in year 2 there were fewer at 3 m (farming 1 m, oil extraction 2 m).
Question 27
Question 27 was answered correctly by 38 per cent of the candidates who chose option B. 25 per cent
chose option D, 22 per cent chose option C and 15 per cent chose option A. 38 per cent of candidates
realised option B is not an acceptable reason in support of producing a wider range of goods. Decreased
specialisation will reduce not increase the benefit of free trade. 25 per cent incorrectly chose option D.
Volatility in the price of oil is an acceptable reason in support of producing a wider range of goods.
Avoidance of uncertainty in the price of a specialised product is an acceptable reason to diversify. 22 per
cent incorrectly chose option C. Avoiding dependence on other countries is an acceptable reason in support
of producing a wider range of goods. Avoiding reliance on other countries for vital goods and services is an
acceptable reason to diversify. 15 per cent incorrectly chose option A. Avoiding the rapid depletion of a non-
renewable resource is an acceptable reason in support of moving to produce a wider range of goods.
Question 30
Question 30 was answered correctly by 37 per cent of the candidates who chose option C. 27 per cent
chose option A, 23 per cent chose option B and 12 per cent chose option D. 38 per cent of candidates
correctly realised that increasing existing import quotas would allow a greater quantity of imports into the
country. This would increase the value of imports relative to exports and so reduce the current account
surplus on its balance of payments. 27 per cent incorrectly selected option A making a common mistake of
thinking the current account of the balance of payments is part of the government’s financial position. 23 per
© 2025
