GCSE ECONOMICS FINAL PAPER QUESTIONS AND
SOLUTIONS 2025/2026 GRADED A+
✔✔Primary Sector - ✔✔the direct use of natural resources, such as the extraction of
basic materials / goods from land and sea.
Products are tangible. (goods)
✔✔Secondary Sector - ✔✔All activities in an economy that are concerned with either
manufacturing or construction.
Products are tangible. (goods)
✔✔Manufacturing - ✔✔- Direct use of raw materials (from primary sector) such as
making wooden chairs or cheese.
OR
- Indirect use of materials, such as making parts of a car or phone parts.
✔✔Construction - ✔✔The process of building / creating a building or infrastructure, like
housing / schools.
✔✔Tertiary Sector - ✔✔All activities in an economy where services are provided, and
involve the idea of a service.
Products are intangible.
e.g. haircut
✔✔Factor Market - ✔✔A market where the services of the factors of production are
bought and sold.
✔✔Product Market - ✔✔A market where final goods / services are offered to consumers
, businesses...etc
✔✔Derived Demand - ✔✔When a product or factor of production is not demanded for
specifically, but is dependant on the demand of the product it helps to produce.
e.g. Apple purchases factors of production in order to manufacture its devices.
If it stops, the demand of the factors of production fall.
✔✔Exchange - ✔✔The giving up of something that the individual or firm has, in return
for something they wish to have but do not possess.
,✔✔Specialisation - ✔✔The process by which individuals, firms, regions and whole
economies concentrate on producing those products that they are best at producing.
e.g. I am good at maths and science but since science is trash I specialise in maths,
increasing my skill and efficiency in it.
✔✔Benefits of specialisation for PRODUCERS - ✔✔- Output is increased, and even can
use specialist equipment / systems to increase productivity.
- Workers who specialise in one task become skilled in that task, so productivity can
increase.
- Producers can focus resources on one task, increasing quality of products.
- Larger output allows the firm to gain economies of scale.
✔✔Costs of specialisation for PRODUCERS - ✔✔- As the output increases costs can
rise as more resources are needed and may become scarce.
- Production depends on all parts/processes fully functioning. A strike will be disastrous.
- Exchange can fail if it is not possible to purchase the required parts.
e.g. too expensive
- Workers can become bored and leave the job.
✔✔Division of Labour - ✔✔Where workers specialise in, or concentrate on one area of
the production process.
✔✔Benefits of specialisation for WORKERS - ✔✔- By specialising, workers become
more trained and fluent about their work. This can result in a rise in pay.
- Workers can do what they are best at, which can result in a pay rise and job
satisfaction.
- By earning more money, workers can purchase goods to satisfy their needs, and some
wants.
✔✔Costs of specialisation for WORKERS - ✔✔- Doing the same job can be boring.
- Workers become deskilled and lose the skills to do other types of work, and therefore
cannot respond to changes in demand.
- A fall in demand can cause trouble for workers as they don't have other skills /
experience. As well as this, machines can replace them.
, ✔✔Benefits of specialisation for REGIONS - ✔✔- Regions can specialise in an industry
because of an availability of resources, so it can be used efficiently.
- Residents can find the work locally and near their homes.
- Regions that specialise will develop infrastructure and supply industries to support that
specific industry. This leads to development.
✔✔Costs of specialisation for REGIONS - ✔✔- If demand for the good falls, the industry
will subsequently collapse.
- Resource exhaustion: if raw materials are no longer available, then people employed
to extract the materials will become unemployed.
- Another region or country may produce goods faster and supply them at a lower price,
leading to unemployment.
✔✔Benefits of specialisation for COUNTRIES - ✔✔- Economies of scale: countries do
what they do best, leading to greater efficiency and increased output.
- Increasing output creates more jobs and therefore further investment, leading to higher
income and a more skilled workforce.
- Can lead to international trade as the country specialises on producing the goods that
they are good at, so they need other goods and services from others.
- Improved standard of living as there is higher income.
- Increase in output and income leads to greater tax revenue and therefore better public
services.
✔✔Costs of specialisation for COUNTRIES - ✔✔- Specialisation can destroy jobs too,
as workers without the necessary skills cannot find jobs.
- A country can become over dependent on the production of the goods it specialises in.
If demand changes, the entire economy can collapse.
- Increasing output results in over-exploitation of resources, leading to unsustainability
and environmental damage.
✔✔Demand - ✔✔The willingness and ability to purchase a good or service at the given
price in a given time period.
✔✔Law of Demand - ✔✔For most products, the quantity demanded varies inversely
with its price.
SOLUTIONS 2025/2026 GRADED A+
✔✔Primary Sector - ✔✔the direct use of natural resources, such as the extraction of
basic materials / goods from land and sea.
Products are tangible. (goods)
✔✔Secondary Sector - ✔✔All activities in an economy that are concerned with either
manufacturing or construction.
Products are tangible. (goods)
✔✔Manufacturing - ✔✔- Direct use of raw materials (from primary sector) such as
making wooden chairs or cheese.
OR
- Indirect use of materials, such as making parts of a car or phone parts.
✔✔Construction - ✔✔The process of building / creating a building or infrastructure, like
housing / schools.
✔✔Tertiary Sector - ✔✔All activities in an economy where services are provided, and
involve the idea of a service.
Products are intangible.
e.g. haircut
✔✔Factor Market - ✔✔A market where the services of the factors of production are
bought and sold.
✔✔Product Market - ✔✔A market where final goods / services are offered to consumers
, businesses...etc
✔✔Derived Demand - ✔✔When a product or factor of production is not demanded for
specifically, but is dependant on the demand of the product it helps to produce.
e.g. Apple purchases factors of production in order to manufacture its devices.
If it stops, the demand of the factors of production fall.
✔✔Exchange - ✔✔The giving up of something that the individual or firm has, in return
for something they wish to have but do not possess.
,✔✔Specialisation - ✔✔The process by which individuals, firms, regions and whole
economies concentrate on producing those products that they are best at producing.
e.g. I am good at maths and science but since science is trash I specialise in maths,
increasing my skill and efficiency in it.
✔✔Benefits of specialisation for PRODUCERS - ✔✔- Output is increased, and even can
use specialist equipment / systems to increase productivity.
- Workers who specialise in one task become skilled in that task, so productivity can
increase.
- Producers can focus resources on one task, increasing quality of products.
- Larger output allows the firm to gain economies of scale.
✔✔Costs of specialisation for PRODUCERS - ✔✔- As the output increases costs can
rise as more resources are needed and may become scarce.
- Production depends on all parts/processes fully functioning. A strike will be disastrous.
- Exchange can fail if it is not possible to purchase the required parts.
e.g. too expensive
- Workers can become bored and leave the job.
✔✔Division of Labour - ✔✔Where workers specialise in, or concentrate on one area of
the production process.
✔✔Benefits of specialisation for WORKERS - ✔✔- By specialising, workers become
more trained and fluent about their work. This can result in a rise in pay.
- Workers can do what they are best at, which can result in a pay rise and job
satisfaction.
- By earning more money, workers can purchase goods to satisfy their needs, and some
wants.
✔✔Costs of specialisation for WORKERS - ✔✔- Doing the same job can be boring.
- Workers become deskilled and lose the skills to do other types of work, and therefore
cannot respond to changes in demand.
- A fall in demand can cause trouble for workers as they don't have other skills /
experience. As well as this, machines can replace them.
, ✔✔Benefits of specialisation for REGIONS - ✔✔- Regions can specialise in an industry
because of an availability of resources, so it can be used efficiently.
- Residents can find the work locally and near their homes.
- Regions that specialise will develop infrastructure and supply industries to support that
specific industry. This leads to development.
✔✔Costs of specialisation for REGIONS - ✔✔- If demand for the good falls, the industry
will subsequently collapse.
- Resource exhaustion: if raw materials are no longer available, then people employed
to extract the materials will become unemployed.
- Another region or country may produce goods faster and supply them at a lower price,
leading to unemployment.
✔✔Benefits of specialisation for COUNTRIES - ✔✔- Economies of scale: countries do
what they do best, leading to greater efficiency and increased output.
- Increasing output creates more jobs and therefore further investment, leading to higher
income and a more skilled workforce.
- Can lead to international trade as the country specialises on producing the goods that
they are good at, so they need other goods and services from others.
- Improved standard of living as there is higher income.
- Increase in output and income leads to greater tax revenue and therefore better public
services.
✔✔Costs of specialisation for COUNTRIES - ✔✔- Specialisation can destroy jobs too,
as workers without the necessary skills cannot find jobs.
- A country can become over dependent on the production of the goods it specialises in.
If demand changes, the entire economy can collapse.
- Increasing output results in over-exploitation of resources, leading to unsustainability
and environmental damage.
✔✔Demand - ✔✔The willingness and ability to purchase a good or service at the given
price in a given time period.
✔✔Law of Demand - ✔✔For most products, the quantity demanded varies inversely
with its price.
