Cambridge Economics 0465

Syllabus
Cambridge IGCSE™
Economics 0455
Use this syllabus for exams in 2023, 2024 and 2025.
Exams are available in the June and November series.
Exams are also available in the March series in India only.
Version 1
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Contents
1 Why choose this syllabus? ..................................................................................................... 2
2 Syllabus overview .................................................................................................................... 5

Aims 5
Content overview 6
Assessment overview 7
Assessment objectives 7
3 Subject content .........................................................................................................................9
4 Details of the assessment ....................................................................................................22

Paper 1 Multiple Choice 22
Paper 2 Structured Questions 22
Command words 23
5 What else you need to know .............................................................................................. 24

Before you start 24
Making entries 25
After the exam 26
How students and teachers can use the grades 26
Grade descriptions 26
Changes to this syllabus for 2023, 2024 and 2025 27
Important: Changes to this syllabus

For information about changes to this syllabus for 2023, 2024 and 2025, go to page 27.
The latest syllabus is version 1, published September 2020. There are no significant changes which affect
teaching.
Any textbooks endorsed to support the syllabus for examination from 2020 are still suitable for use with this
syllabus.
Cambridge IGCSE Economics 0455 syllabus for 2023, 2024 and 2025.
1 Why choose this syllabus?
Key benefits
Cambridge IGCSE is the world’s most popular international qualification for 14 to 16 year olds, although it can be
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Students can choose from 70 subjects in any combination – it is taught by over 4800 schools in over 150 countries.
Cambridge IGCSE Economics is accepted by universities and employers as proof of knowledge and understanding of
economics. Successful Cambridge IGCSE Economics candidates gain lifelong skills, including:
• an understanding of economic theory, terminology and principles
• the ability to apply the tools of economic analysis
• the ability to distinguish between facts and value judgements in economic issues
• an understanding of, and an ability to use, basic economic numeracy and literacy
• the ability to take a greater part in decision-making processes in everyday life
• an ability to use examples from a variety of economies
• an excellent foundation for advanced study in economics.
Our programmes balance a thorough knowledge and understanding of a subject and help to develop the skills
learners need for their next steps in education or employment.
Our approach encourages learners to be:
Cambridge
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2 www.cambridgeinternational.org/igcse Back to contents page

Cambridge IGCSE Economics 0455 syllabus for 2023, 2024 and 2025. Why choose this syllabus?
International recognition and acceptance

Our expertise in curriculum, teaching and learning, and assessment is the basis for the recognition of our
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Cambridge IGCSE Economics 0455 syllabus for 2023, 2024 and 2025. Why choose this syllabus?
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2 Syllabus overview
Aims
The aims describe the purposes of a course based on this syllabus.
The aims are to enable students to:

• know and understand economic terminology, concepts and theories
• use basic economic numeracy and interpret economic data
• use the tools of economic analysis
• express economic ideas logically and clearly in a written form
• apply economic understanding to current economic issues.
Cambridge Assessment International Education is an education organisation and politically neutral.

The contents of this syllabus, examination papers and associated materials do not endorse any political
view. We endeavour to treat all aspects of the exam process neutrally.

Cambridge IGCSE Economics 0455 syllabus for 2023, 2024 and 2025. Syllabus overview
Content overview
1 The basic economic problem
The first section of the syllabus introduces the fundamental ideas and concepts that underpin the study of
economics including the basic economic problem, factors of production, opportunity cost and production
possibility curves.
2 The allocation of resources
The fundamental principles of resource allocation are considered through the price mechanism in a market
economy. The market forces of demand and supply, market equilibrium and disequilibrium, and elasticity form
the core of this section.
3 Microeconomic decision makers
The microeconomy is an important area of study, and the approach to learning taken here is through the role of
the major decision makers: banks, households, workers, trade unions and firms.
4 Government and the macroeconomy
Governments have different macroeconomic aims, and conflicts often arise between the choice of measures
used to achieve them. Variables must be measured to consider the causes and consequences of change, and
appropriate policies applied.
5 Economic development
As an economy develops there will be changes in population, living standards, poverty and income
redistribution. Therefore, the effects of changes in the size and structure of population and of other influences
on development in a variety of countries are explored.
6 International trade and globalisation
The importance of trade between countries and the growth of globalisation is explored. Principles such as
specialisation, the role of free trade, the role of multinational companies, foreign exchange rates and balance of
payments stability are considered.

Assessment overview
All candidates take two components. Candidates will be eligible for grades A* to G.
All candidates take: and:
Paper 1 45 minutes Paper 2 2 hours 15 minutes

Multiple Choice 30% Structured Questions 70%
30 marks 90 marks
Candidates answer all 30 questions Candidates answer one compulsory question and
Externally assessed three questions from a choice of four.
Externally assessed
Information on availability is in the Before you start section.
Assessment objectives
The assessment objectives (AOs) are:
AO1 Knowledge and understanding

Candidates should be able to:
• show knowledge and understanding of economic definitions, formulas, concepts and theories
• use economic terminology.
AO2 Analysis
• select, organise and interpret data
• use economic information and data to recognise patterns and to deduce relationships
• apply economic analysis to written, numerical, diagrammatic and graphical data
• analyse economic issues and situations, identifying and developing links.
AO3 Evaluation
• evaluate economic information and data
• distinguish between economic analysis and unreasoned statements
• recognise the uncertainties of the outcomes of economic decisions and events
• communicate economic thinking in a logical manner.

Weighting for assessment objectives

The approximate weightings allocated to each of the assessment objectives (AOs) are summarised below.
Assessment objectives as a percentage of the qualification

Assessment objective Weighting in IGCSE %
AO1 Knowledge and understanding 40
AO2 Analysis 40
AO3 Evaluation 20
Total 100
Assessment objectives as a percentage of each component

Assessment objective Weighting in components %
Paper 1 30% Paper 2 70%
AO1 Knowledge and understanding 50 35
AO2 Analysis 50 35
AO3 Evaluation – 30
Total 100 100

3 Subject content
This syllabus gives you the flexibility to design a course that will interest, challenge and engage your learners.
Where appropriate you are responsible for selecting topics, subject contexts, resources and examples to support
your learners’ study. These should be appropriate for the learners’ age, cultural background and learning context as
well as complying with your school policies and local legal requirements.
Teachers and students are encouraged to focus learning of the following subject content around real, relevant and
up-to-date economic events that affect the whole world and students’ own countries. Such events might include
but are certainly not limited to:
(a) how large immigration movements may impact on economic growth/living standards in countries affected
(b) the impact that changes in oil prices and the effect that drilling/fracking may have on world trade
(c) the impact that a significant recession in one country may have on its trading partners
(d) how changes in corporation tax between countries may impact on where multinational companies (MNCs)
locate their head office.
1 The basic economic problem

1.1 The nature of the economic problem
Topic Guidance
1.1.1. finite resources and unlimited wants Definition and examples of the economic problem in
the contexts of: consumers; workers; producers; and
governments.
1.1.2. economic and free goods The difference between economic goods and free
goods.
1.2 The factors of production

Topic Guidance
1.2.1. definitions of the factors of production and Definitions and examples of land, labour, capital and
their rewards enterprise. Examples of the nature of each factor of
production.
1.2.2. mobility of the factors of production The influences on the mobility of the various factors.
1.2.3. quantity and quality of the factors of The causes of changes in the quantity and quality of
production the various factors.
1.3 Opportunity cost

Topic Guidance
1.3.1. definition of opportunity cost Definition and examples of opportunity cost in
different contexts.
1.3.2. the influence of opportunity cost on decision Decisions made by consumers, workers, producers
making and governments when allocating their resources.

Cambridge IGCSE Economics 0455 syllabus for 2023, 2024 and 2025. Subject content
1.4 Production possibility curve (PPC) diagrams

Topic Guidance
1.4.1. definition of PPC Definition, drawing and interpretation of appropriate
diagrams.
1.4.2. points under, on and beyond a PPC The significance of the location of production points.
1.4.3. movements along a PPC Movements along a PPC and opportunity cost.
1.4.4. shifts in a PPC The causes and consequences of shifts in a PPC in
terms of an economy’s growth.
2 The allocation of resources

2.1 Microeconomics and macroeconomics
Topic Guidance
2.1.1.microeconomics The difference between microeconomics and
2.1.2.macroeconomics macroeconomics and the decision makers involved
in each.
2.2 The role of markets in allocating resources

Topic Guidance
2.2.1. the market system How a market system works; including buyers, sellers,
allocation of scarce resources, market equilibrium,
and market disequilibrium.
2.2.2. key resources allocation decisions Establishing that the economic problem creates three
key questions about determining resource allocation
– what to produce, how, and for whom.
2.2.3. introduction to the price mechanism How the price mechanism provides answers to these
key allocation questions.
2.3 Demand
Topic Guidance
2.3.1. definition of demand Definition, drawing and interpretation of appropriate
diagrams.
2.3.2. price, demand and quantity A demand curve to be drawn and used to illustrate
movements along a demand curve with appropriate
terminology, for example extensions and
contractions in demand.
2.3.3. individual and market demand The link between individual and market demand in
terms of aggregation.
2.3.4. conditions of demand The causes of shifts in a demand curve with
appropriate terminology, for example increase and
decrease in demand.

2.4 Supply
Topic Guidance
2.4.1. definition of supply Definition, drawing and interpretation of appropriate
diagrams.
2.4.2. price, supply and quantity A supply curve to be drawn and used to illustrate
movements along a supply curve with appropriate
terminology, for example extensions and
contractions in supply.
2.4.3. individual and market supply The link between individual and market supply in
terms of aggregation.
2.4.4. conditions of supply The causes of shifts in a supply curve with
appropriate terminology, for example increase and
decrease in supply.
2.5 Price determination

Topic Guidance
2.5.1. market equilibrium Definition, drawing and interpretation of demand
and supply schedules and curves used to establish
equilibrium price and sales in a market.
2.5.2. market disequilibrium Definition, drawing and interpretation of demand
and supply schedules and curves used to identify
disequilibrium prices and shortages (demand
exceeding supply) and surpluses (supply exceeding
demand).
2.6 Price changes

Topic Guidance
2.6.1. causes of price changes Changing market conditions as causes of price
changes.
2.6.2. consequences of price changes Demand and supply diagrams to be used to illustrate
these changes in market conditions and their
consequences for equilibrium price and sales.

2.7 Price elasticity of demand (PED)

Topic Guidance
2.7.1. definition of PED
2.7.2. calculation of PED Calculation of PED using the formula and interpreting
the significance of the result.
Drawing and interpretation of demand curve
diagrams to show different PED.
2.7.3. determinants of PED The key influences on whether demand is elastic or
inelastic.
2.7.4. PED and total spending on a product/revenue The relationship between PED and total spending
on a product/revenue, both in a diagram and as a
calculation.
2.7.5. significance of PED The implications for decision making by consumers,
producers and government.
2.8 Price elasticity of supply (PES)

Topic Guidance
2.8.1. definition of PES
2.8.2. calculation of PES Calculation of PES using the formula and interpreting
the significance of the result.
Drawing and interpretation of supply curve diagrams
to show different PES.
2.8.3. determinants of PES The key influences on whether supply is elastic or
inelastic.
2.8.4. significance of PES The implications for decision making by consumers,
producers and government.
2.9 Market economic system

Topic Guidance
2.9.1. definition of market economic system
2.9.2. advantages and disadvantages of the market Including examples of how it works in a variety of
economic system different countries.

2.10 Market failure

Topic Guidance
2.10.1 .definition of market failure The key terms associated with market failure: public
good, merit good, demerit good, social benefits,
external benefits, private benefits, social costs,
external costs, private costs.
2.10.2. causes of market failure With respect to public goods, merit and demerit
goods, external costs and external benefits, abuse of
monopoly power and factor immobility.
Examples of market failure with respect to these
areas only.
2.10.3.consequences of market failure The implications of misallocation of resources in
respect of the over consumption of demerit goods
and goods with external costs, and the under
consumption of merit goods and goods with external
benefits.
Note: demand and supply diagrams relating to
market failure are not required.
2.11 Mixed economic system

Topic Guidance
2.11.1. definition of the mixed economic system
2.11.2. government intervention to address market Definitions, drawing and interpretation of appropriate
failure diagrams showing the effects of three government
microeconomic policy measures: maximum and
minimum prices in product, labour and foreign
exchange markets; indirect taxation; and subsidies.
The implications of other government
microeconomic policy measures: regulation;
privatisation and nationalisation; and direct provision
of goods.
The effectiveness of government intervention in
overcoming the drawbacks of a market economic
system.

3 Microeconomic decision makers

3.1 Money and banking
Topic Guidance
3.1.1.money The forms, functions and characteristics of money.
3.1.2.banking The role and importance of central banks and
commercial banks for government, producers and
consumers.
3.2 Households
Topic Guidance
3.2.1. the influences on spending, saving and Including income, the rate of interest and confidence
borrowing – between different households and over time.
3.3 Workers
Topic Guidance
3.3.1. factors affecting an individual’s choice of Wage and non-wage factors.
occupation
3.3.2. wage determination The influences of demand and supply, relative
bargaining power and government policy, including
minimum wage.
3.3.3. reasons for differences in earnings How changes in demand and supply, relative
bargaining strengths, discrimination and government
policy can all influence differences in earnings
between workers whether they are: skilled/unskilled;
primary/secondary/tertiary; male/female; private
sector/public sector. Definition, drawing and
interpretation of diagrams that illustrate the effects
of changes in demand and supply in the labour
market.
3.3.4. division of labour/specialisation Advantages and disadvantages for workers, firms and
the economy.
3.4 Trade unions

Topic Guidance
3.4.1. definition of a trade union
3.4.2. the role of trade unions in the economy Including engaging in collective bargaining on wages,
working hours and working conditions; protecting
employment; and influencing government policy.
Factors influencing the strength of trade unions.
3.4.3. the advantages and disadvantages of trade From the viewpoint of workers, firms and the
union activity government.

3.5 Firms
Topic Guidance
3.5.1. classification of firms In terms of primary/secondary/tertiary sectors and
private/public sector, and the relative size of firms.
Note: detailed knowledge of different types of
structure of a firm is not required.
3.5.2. small firms The advantages and disadvantages of small firms, the
challenges facing small firms and reasons for their
existence.
3.5.3. causes and forms of the growth of firms Internal growth, for example increased market share.
External growth, for example mergers.
3.5.4.mergers Examples, advantages and disadvantages of
different types of mergers: horizontal, vertical, and
conglomerate.
3.5.5. economies and diseconomies of scale How internal and external economies and
diseconomies of scale can affect a firm/industry as
the scale of production changes.
3.6 Firms and production

Topic Guidance
3.6.1. demand for factors of production Influences to include demand for the product,
the price of different factors of production, their
availability and their productivity.
3.6.2. labour-intensive and capital-intensive The reasons for adopting the different forms of
production production and their advantages and disadvantages.
3.6.3. production and productivity The difference between, and influences on,
production and productivity.
3.7 Firms’ costs, revenue and objectives

Topic Guidance
3.7.1. definition of costs of production Total cost (TC), average total cost (ATC), fixed cost
(FC), variable cost (VC), average fixed cost (AFC),
average variable cost (AVC).
Note: marginal cost is not required.
3.7.2. calculation of costs of production Calculation of TC, ATC, FC, VC, AFC and AVC.
Definition, drawing and interpretation of diagrams
that show how changes in output affect costs of
production.
3.7.3. definition of revenue Total revenue (TR) and average revenue (AR).
Note: marginal revenue is not required.
3.7.4. calculation of revenue Calculation of TR and AR.
The influence of sales on revenue.
3.7.5. objectives of firms Survival, social welfare, profit maximisation and
growth.

3.8 Market structure

Topic Guidance
3.8.1. competitive markets The effect of having a high number of firms on price,
quality, choice, profit.
Note: the theory of perfect and imperfect
competition and diagrams are not required.
3.8.2. monopoly markets Characteristics, advantages and disadvantages of
monopoly.
Note: diagrams are not required.
4 Government and the macroeconomy

4.1 The role of government
Topic Guidance
4.1.1. the role of government Locally, nationally and internationally.
4.2 The macroeconomic aims of government

Topic Guidance
4.2.1. the macroeconomic aims of government Economic growth, full employment/low
unemployment, stable prices/low inflation, balance
of payments stability, redistribution of income.
Reasons behind the choice of aims and the criteria
that governments set for each aim.
4.2.2. possible conflicts between macroeconomic Possible conflicts between aims: full employment
aims versus stable prices; economic growth versus balance
of payments stability; and full employment versus
balance of payments stability.
4.3 Fiscal policy

Topic Guidance
4.3.1. definition of the government budget
4.3.2. reasons for government spending The main areas of government spending and the
reasons for and effects of spending in these areas.
4.3.3. reasons for taxation Taxation as the main source of government revenue
and the reasons for levying taxation.
4.3.4. classification of taxes Examples of the different classifications of tax;
progressive, regressive, proportional; and direct,
indirect.
4.3.5. principles of taxation The qualities of a good tax.
4.3.6. impact of taxation The impact of taxation on consumers, producers,
government and economy as a whole.
Continued

4.3 Fiscal policy continued

Topic Guidance
4.3.7. definition of fiscal policy
4.3.8. fiscal policy measures The tax and spending changes, in the form of fiscal
policy, that cause budget balance or imbalance.
Including calculations of the size of a budget deficit
or surplus.
4.3.9. effects of fiscal policy on government How fiscal policy measures may enable the
macroeconomic aims government to achieve its macroeconomic aims.
Note: aggregate demand and aggregate supply are
not required.
4.4 Monetary policy

Topic Guidance
4.4.1. definition of money supply and monetary
policy
4.4.2. monetary policy measures Changes in interest rates, money supply and foreign
exchange rates.
4.4.3. effects of monetary policy on government How monetary policy measures may enable the
macroeconomic aims government to achieve its macroeconomic aims.
4.5 Supply-side policy

Topic Guidance
4.5.1. definition of supply-side policy
4.5.2. supply-side policy measures Possible supply-side policy measures include
education and training, labour market reforms, lower
direct taxes, deregulation, improving incentives to
work and invest, and privatisation.
4.5.3. effects of supply-side policy measures on How supply-side policy measures may enable the
government macroeconomic aims government to achieve its macroeconomic aims.

4.6 Economic growth

Topic Guidance
4.6.1. definition of economic growth
4.6.2. measurement of economic growth Real Gross Domestic Product (GDP) and how it can
be used to measure economic growth. GDP per head
(capita).
4.6.3. causes and consequences of recession Meaning of recession and how a recession moves the
economy within its PPC.
4.6.4. causes of economic growth How changes in total demand may increase the
utilisation of resources and GDP – resulting in a
movement from inside toward the PPC.
How economic growth shifts the economy’s PPC to
the right and is caused by changes in investment,
technology, and the quantity and quality of the
factors of production.
4.6.5. consequences of economic growth The costs and benefits of economic growth in the
context of different economies.
4.6.6. policies to promote economic growth The range of policies available to promote economic
growth and how effective they might be.
4.7 Employment and unemployment

Topic Guidance
4.7.1. definition of employment, unemployment and
full employment
4.7.2. changing patterns and level of employment The nature and causes of changes in the pattern of
employment, for example increase in proportion
of workers employed in the tertiary sector and
formal economy as an economy develops; a greater
proportion of women in the labour force due to
changes in social attitudes; decline in the proportion
employed in the public sector as a country moves
towards a market economy.
4.7.3. measurement of unemployment How unemployment is measured – claimant count
and labour force survey – and the formula for the
unemployment rate.
4.7.4. causes/types of unemployment Frictional, structural and cyclical unemployment.
4.7.5. consequences of unemployment The consequences of unemployment for the
individual, firms and the economy as a whole.
4.7.6. policies to reduce unemployment The range of policies available to reduce
unemployment and how effective they might be.

4.8 Inflation and deflation

Topic Guidance
4.8.1. definition of inflation and deflation
4.8.2. measurement of inflation and deflation Measurement of inflation and deflation using the
Consumer Prices Index (CPI).
4.8.3. causes of inflation and deflation Causes of inflation: demand-pull and cost-push.
Causes of deflation: demand-side and supply-side.
4.8.4. consequences of inflation and deflation The consequences of inflation and deflation for
consumers, workers, savers, lenders, firms and the
economy as a whole.
4.8.5. policies to control inflation and deflation The range of policies available to control inflation and
deflation and how effective they might be.
5 Economic development
5.1 Living standards
Topic Guidance
5.1.1. indicators of living standards Real GDP per head and the Human Development
Index (HDI).
The components of real GDP and HDI.
The advantages and disadvantages of real GDP and
HDI.
5.1.2. comparing living standards and income Reasons for differences in living standards and
distribution income distribution within and between countries.
5.2 Poverty
Topic Guidance
5.2.1. definition of absolute and relative poverty The difference between the two terms.
5.2.2. the causes of poverty The causes of poverty including unemployment, low
wages, illness and age.
5.2.3. policies to alleviate poverty and redistribute Policies including those promoting economic growth,
income improved education, more generous state benefits,
progressive taxation, and national minimum wage.

5.3 Population
Topic Guidance
5.3.1. the factors that affect population growth Birth rate, death rate, net migration, immigration and
emigration.
5.3.2. reasons for different rates of population How and why birth rates, death rates and net
growth in different countries migration vary between countries.
5.3.3. the effects of changes in the size and structure The concept of an optimum population. The effects
of population on different countries of increases and decreases in population size and
changes in the age and gender distribution of
population.
Note: interpretation of a population pyramid is
required, but drawing is not.
5.4 Differences in economic development between countries

Topic Guidance
5.4.1. differences in economic development Causes and impacts of differences in income;
between countries productivity; population growth; size of primary,
secondary and tertiary sectors; saving and
investment; education; and healthcare.
6 International trade and globalisation

6.1 International specialisation
Topic Guidance
6.1.1. specialisation at a national level The basis for specialisation at national level in broad
terms of: superior resource allocation and/or cheaper
production methods.
6.1.2. advantages and disadvantages of specialisation For consumers, firms and the economy.
at a national level
6.2 Globalisation, free trade and protection

Topic Guidance
6.2.1. definition of globalisation
6.2.2. role of multinational companies (MNCs) MNCs and the costs and benefits to their host and
home countries.
6.2.3. the benefits of free trade The benefits for consumers, producers and the
economy in a variety of countries.
6.2.4. methods of protection Tariffs, import quotas, subsidies and embargoes.
6.2.5. reasons for protection Including infant industry, declining industry, strategic
industry and avoidance of dumping.
6.2.6. consequences of protection Effectiveness of protection and its impact on the
home country and its trading partners.

6.3 Foreign exchange rates

Topic Guidance
6.3.1. definition of foreign exchange rate Floating and fixed systems.
6.3.2. determination of foreign exchange rate in The demand for and supply of a currency in the
foreign exchange market foreign exchange market and the determination of
the equilibrium foreign exchange rate.
6.3.3. causes of foreign exchange rate fluctuations Including changes in demand for exports and imports,
changes in the rate of interest, speculation, and the
entry or departure of MNCs.
6.3.4. consequences of foreign exchange rate The effects of foreign exchange rate fluctuations on
fluctuations export and import prices and spending on imports
and exports via the PED.
6.3.5. floating and fixed foreign exchange rates The difference between, and the advantages and
disadvantages of, a floating foreign exchange rate
and a fixed foreign exchange rate system.
6.4 Current account of balance of payments

Topic Guidance
6.4.1.structure The components of the current account of the
balance of payments – trade in goods, trade in
services, primary income and secondary income.
Calculation of deficits and surpluses on the current
account of the balance of payments and its
component sections.
6.4.2. causes of current account deficit and surplus Reasons for deficits and surpluses.
6.4.3. consequences of current account deficit and Impact on GDP, employment, inflation and foreign
surplus exchange rate.
6.4.4. policies to achieve balance of payments The range of policies available to achieve balance of
stability payments stability and how effective they might be.

4 Details of the assessment
For information on the assessment objectives (AOs), see section 2.
Paper 1 – Multiple Choice

Multiple-choice paper, 45 minutes, 30 marks
Candidates answer all 30 multiple-choice questions. Candidates indicate their answers on the multiple choice
answer sheet provided. The questions are based on all six sections of the syllabus content. The questions may
include calculations.
Calculators may be used in the examination.
The paper assesses the following assessment objectives:

AO1: Knowledge and understanding
AO2: Analysis
Paper 2 – Structured Questions

Written paper, 2 hours 15 minutes, 90 marks
Candidates answer one compulsory question in Section A and three questions from a choice of four in Section B.
Candidates write their answers in the answer booklet provided.
Candidates should be aware of the marks for each part question. These are printed on the question paper.
Candidates should use them as a guide to the amount of detail and length of response expected and to help them
manage their time effectively.
Calculators may be used in both sections of the examination.
Section A
Candidates answer one compulsory question (30 marks), which requires them to interpret and analyse previously
unseen source material relevant to a real economic situation. The question has part questions. Each part question
is based on one or more topics drawn from the syllabus content. The part questions require short and extended
responses, based on the source information provided and may include calculations and diagrams. The source
material contains written text and may contain diagrammatic or tabular information. Candidates must refer to this
source material.
Section B
Candidates answer three questions from a choice of four. Each question is worth 20 marks and has four part
questions. Each part question is based on one or more topics drawn from the syllabus content. The questions
require short and extended responses, and may include calculations and diagrams. Each question is introduced by
stimulus material. The stimulus gives the question context. Candidates may refer to this material and/or to other
examples that they have studied.
The paper assesses the following assessment objectives:

AO1: Knowledge and understanding
AO2: Analysis
AO3: Evaluation

Cambridge IGCSE Economics 0455 syllabus for 2023, 2024 and 2025. Details of the assessment
Command words
Command words and their meanings help candidates know what is expected from them in the exams. The table
below includes command words used in the assessment for this syllabus. The use of the command word will relate
to the subject context.
Command word What it means

Analyse examine in detail to show meaning, identify elements and the relationship between them
Calculate work out from given facts, figures or information
Define give precise meaning
Describe state the points of a topic / give characteristics and main features
Discuss write about issue(s) or topic(s) in depth in a structured way
Explain set out purposes or reasons / make the relationships between things evident / provide why
and/or how and support with relevant evidence
Give produce an answer from a given source or recall/memory
Identify name/select/recognise
State express in clear terms

5 What else you need to know
This section is an overview of other information you need to know about this syllabus. It will help to share the
administrative information with your exams officer so they know when you will need their support. Find more
information about our administrative processes at www.cambridgeinternational.org/eoguide
Before you start

Previous study
We do not expect learners starting this course to have previously studied economics.
Guided learning hours

We design Cambridge IGCSE syllabuses based on learners having about 130 guided learning hours for each subject
during the course but this is for guidance only. The number of hours a learner needs to achieve the qualification
may vary according to local practice and their previous experience of the subject.
Availability and timetables

All Cambridge schools are allocated to one of six administrative zones. Each zone has a specific timetable.
You can view the timetable for your administrative zone at www.cambridgeinternational.org/timetables
You can enter candidates in the June and November exam series. If your school is in India, you can also enter your
candidates in the March exam series.
Check you are using the syllabus for the year the candidate is taking the exam.
Private candidates can enter for this syllabus. For more information, please refer to the Cambridge Guide to Making
Entries.
Combining with other syllabuses

Candidates can take this syllabus alongside other Cambridge International syllabuses in a single exam series. The
only exceptions are:
• Cambridge IGCSE (9–1) Economics (0987)
• Cambridge O Level Economics (2281)
• syllabuses with the same title at the same level.
Cambridge IGCSE, Cambridge IGCSE (9–1) and Cambridge O Level syllabuses are at the same level.
Group awards: Cambridge ICE

Cambridge ICE (International Certificate of Education) is a group award for Cambridge IGCSE. It allows schools to
offer a broad and balanced curriculum by recognising the achievements of learners who pass exams in a range of
different subjects.
Learn more about Cambridge ICE at www.cambridgeinternational.org/cambridgeice

Cambridge IGCSE Economics 0455 syllabus for 2023, 2024 and 2025. What else you need to know
Making entries
Exams officers are responsible for submitting entries to Cambridge International. We encourage them to work
closely with you to make sure they enter the right number of candidates for the right combination of syllabus
components. Entry option codes and instructions for submitting entries are in the Cambridge Guide to Making
Entries. Your exams officer has a copy of this guide.
Exam administration
To keep our exams secure, we produce question papers for different areas of the world, known as administrative
zones. We allocate all Cambridge schools to one administrative zone determined by their location. Each zone has
a specific timetable. Some of our syllabuses offer candidates different assessment options. An entry option code
is used to identify the components the candidate will take relevant to the administrative zone and the available
assessment options.
Support for exams officers

We know how important exams officers are to the successful running of exams. We provide them with the support
they need to make your entries on time. Your exams officer will find this support, and guidance for all other phases
of the Cambridge Exams Cycle, at www.cambridgeinternational.org/eoguide
Retakes
Candidates can retake the whole qualification as many times as they want to. Information on retake entries is at
www.cambridgeinternational.org/entries
Equality and inclusion

We have taken great care to avoid bias of any kind in the preparation of this syllabus and related assessment
materials. In our effort to comply with the UK Equality Act (2010) we have taken all reasonable steps to avoid any
direct and indirect discrimination.
The standard assessment arrangements may present barriers for candidates with impairments. Where a candidate
is eligible, we may be able to make arrangements to enable that candidate to access assessments and receive
recognition of their attainment. We do not agree access arrangements if they give candidates an unfair advantage
over others or if they compromise the standards being assessed.
Candidates who cannot access the assessment of any component may be able to receive an award based on the
parts of the assessment they have completed.
Information on access arrangements is in the Cambridge Handbook at www.cambridgeinternational.org/eoguide
Language
This syllabus and the related assessment materials are available in English only.

After the exam

Grading and reporting
Grades A*, A, B, C, D, E, F or G indicate the standard a candidate achieved at Cambridge IGCSE.
A* is the highest and G is the lowest. ‘Ungraded’ means that the candidate’s performance did not meet the
standard required for grade G. ‘Ungraded’ is reported on the statement of results but not on the certificate.
In specific circumstances your candidates may see one of the following letters on their statement of results:
• Q (PENDING)
• X (NO RESULT).
These letters do not appear on the certificate.
On the statement of results and certificates, Cambridge IGCSE is shown as INTERNATIONAL GENERAL
CERTIFICATE OF SECONDARY EDUCATION (IGCSE).
How students and teachers can use the grades

Assessment at Cambridge IGCSE has two purposes:
• to measure learning and achievement
The assessment:
– confirms achievement and performance in relation to the knowledge, understanding and skills specified in
the syllabus, to the levels described in the grade descriptions.
• to show likely future success
The outcomes:
– help predict which students are well prepared for a particular course or career and/or which students are
more likely to be successful
– help students choose the most suitable course or career.
Grade descriptions
Grade descriptions are provided to give an indication of the standards of achievement candidates awarded
particular grades are likely to show. Weakness in one aspect of the examination may be balanced by a better
performance in some other aspect.
Grade descriptions for Cambridge IGCSE Economics will be published after the first assessment of the syllabus in
2020. Find more information at www.cambridgeinternational.org/0455

Changes to this syllabus for 2023, 2024 and 2025

The syllabus has been updated. This is version 1, published September 2020.
There are no significant changes that affect teaching.
You must read the whole syllabus before planning your teaching programme.
Changes to syllabus content • We have made some small changes to the wording in section 3
Subject content, for clarity.
Any textbooks endorsed to support the syllabus for examination from 2020 are still suitable for use
with this syllabus.

‘While studying Cambridge IGCSE and Cambridge International A Levels, students broaden their horizons
through a global perspective and develop a lasting passion for learning.’
Zhai Xiaoning, Deputy Principal, The High School Affiliated to Renmin University of China
Cambridge Assessment International Education

The Triangle Building, Shaftesbury Road, Cambridge, CB2 8EA, United Kingdom
Tel: +44 (0)1223 553554 Fax: +44 (0)1223 553558
Email: info@cambridgeinternational.org www.cambridgeinternational.org
Copyright © UCLES September 2020

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Syllabus

‘We think the Cambridge curriculum is superb preparation for university.’

Copyright © UCLES September 2020

1 Why choose this syllabus? ..................................................................................................... 2

2 Syllabus overview .................................................................................................................... 5

3 Subject content .........................................................................................................................9

4 Details of the assessment ....................................................................................................22

5 What else you need to know .............................................................................................. 24

Important: Changes to this syllabus

1 Why choose this syllabus?

Our approach encourages learners to be:

2 www.cambridgeinternational.org/igcse Back to contents page

International recognition and acceptance

Learn more at www.cambridgeinternational.org/recognition

Back to contents page www.cambridgeinternational.org/igcse 3

Find out more at www.cambridgeinternational.org/support

Planning and preparation Teaching and assessment

• Cambridge Professional Development Qualifications

Supporting exams officers

4 www.cambridgeinternational.org/igcse Back to contents page

The aims are to enable students to:

Cambridge Assessment International Education is an education organisation and politically neutral.

Back to contents page www.cambridgeinternational.org/igcse 5

6 www.cambridgeinternational.org/igcse Back to contents page

All candidates take: and:

Paper 1 45 minutes Paper 2 2 hours 15 minutes

Information on availability is in the Before you start section.

AO1 Knowledge and understanding

Back to contents page www.cambridgeinternational.org/igcse 7

Weighting for assessment objectives

Assessment objectives as a percentage of the qualification

AO1 Knowledge and understanding 40

Assessment objectives as a percentage of each component

Paper 1 30% Paper 2 70%

AO1 Knowledge and understanding 50 35

Total 100 100

8 www.cambridgeinternational.org/igcse Back to contents page

1 The basic economic problem

1.2 The factors of production

1.3 Opportunity cost

Back to contents page www.cambridgeinternational.org/igcse 9

1.4 Production possibility curve (PPC) diagrams

2 The allocation of resources

2.2 The role of markets in allocating resources

10 www.cambridgeinternational.org/igcse Back to contents page

2.5 Price determination

2.6 Price changes

Back to contents page www.cambridgeinternational.org/igcse 11

2.7 Price elasticity of demand (PED)

2.8 Price elasticity of supply (PES)

2.9 Market economic system

12 www.cambridgeinternational.org/igcse Back to contents page

2.10 Market failure

2.11 Mixed economic system

Back to contents page www.cambridgeinternational.org/igcse 13

3 Microeconomic decision makers

3.4 Trade unions

14 www.cambridgeinternational.org/igcse Back to contents page

3.6 Firms and production