Economics IGCSE
EDEXCEL WITH
CORRECT ANSWERS
2025/2026
Advalorem tax - correct answersTax levied as a percentage of the price of a good.
Average costs - correct answersThe cost per unit of output; it is equal to total cost divided by
output.
Basic economic problem - correct answersAllocation of a nation's scarce resources between
competing uses that represent infinite wants.
, Capital intensive - correct answersWhere production relies more heavily on machinery relative
to labour.
Choice - correct answersDeciding between alternative uses of scare resources.
Collusion - correct answersAgreements between firms to restrict competition.
Competition - correct answersThe rivalry that exists between firms when trying to sell goods to
the same group of customers.
Complementary goods - correct answersGoods purchased together because they are consumed
together.
Contractionary fiscal policy - correct answersFiscal measures designed to dampen demand in
the economy.
Cost-push inflation - correct answersInflation caused by rising business costs.
Costs - correct answersThe expenses incurred when producing goods and services.
Current account - correct answersPart of the balance of payments where all exports and
imports are recorded.
Cyclical or demand deficient unemployment - correct answersUnemployment caused by falling
demand as result of a downturn in the economic cycle.
De-industrialisation - correct answersThe decline in manufacturing.
Deflation - correct answersA period where the level of aggregate demand is falling.
EDEXCEL WITH
CORRECT ANSWERS
2025/2026
Advalorem tax - correct answersTax levied as a percentage of the price of a good.
Average costs - correct answersThe cost per unit of output; it is equal to total cost divided by
output.
Basic economic problem - correct answersAllocation of a nation's scarce resources between
competing uses that represent infinite wants.
, Capital intensive - correct answersWhere production relies more heavily on machinery relative
to labour.
Choice - correct answersDeciding between alternative uses of scare resources.
Collusion - correct answersAgreements between firms to restrict competition.
Competition - correct answersThe rivalry that exists between firms when trying to sell goods to
the same group of customers.
Complementary goods - correct answersGoods purchased together because they are consumed
together.
Contractionary fiscal policy - correct answersFiscal measures designed to dampen demand in
the economy.
Cost-push inflation - correct answersInflation caused by rising business costs.
Costs - correct answersThe expenses incurred when producing goods and services.
Current account - correct answersPart of the balance of payments where all exports and
imports are recorded.
Cyclical or demand deficient unemployment - correct answersUnemployment caused by falling
demand as result of a downturn in the economic cycle.
De-industrialisation - correct answersThe decline in manufacturing.
Deflation - correct answersA period where the level of aggregate demand is falling.
