IGCSE Economics (9–1) 0987 · Topic 1

The basic economic problem: past paper questions

85 real questionsasked in 9 of the last 10 exam series2020–2025usually: Explain, Identify, Discuss, Analyse, Define

Real questions on the basic economic problem

The newest 20 of 37 written questions, plus 48 multiple-choice. Open one to see it on the real paper.

0987/22 · October/November 2025 · Q1a[1]
Calculate foreign workers as a percentage of Japan’s labour force in 2022.
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0987/22 · October/November 2025 · Q1d[4]
Explain two ways Japan could attract more foreign workers.
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0987/22 · October/November 2025 · Q1f[5]
Analyse the relationship between global GDP per head and global air passenger numbers.
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0987/22 · October/November 2025 · Q1g[6]
Discuss whether or not a high savings rate is likely to benefit Japan.
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0987/22 · October/November 2025 · Q1h[6]
Discuss whether or not labour mobility in Japan is likely to increase in the future. Section B Answer any three questions. Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied.
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0987/22 · October/November 2025 · Q2b[4]
Explain two ways an economy could reach a point outside its current PPC.
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0987/21 · May/June 2025 · Q1d[4]
Explain two reasons why the Gabonese Government wants to reduce reliance on oil.
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0987/21 · May/June 2025 · Q3a[2]
Identify the rewards to capital and land.
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0987/21 · May/June 2025 · Q3b[4]
Explain two causes of a decrease in enterprise in an economy.
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0987/22 · May/June 2024 · Q2a[2]
Identify two possible opportunity costs of producing primary sector products.
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0987/22 · October/November 2023 · Q1d[4]
Explain two ways a government could redistribute income.
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0987/22 · October/November 2023 · Q2a[2]
Define, with an example, a capital good.
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0987/22 · October/November 2023 · Q5c[6]
Analyse, using a production possibility curve (PPC) diagram, the effect of a decrease in the size of a country’s labour force on its economy.
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0987/21 · May/June 2023 · Q4a[2]
Identify two influences on which country a person decides to work in.
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0987/21 · May/June 2023 · Q5b[4]
Explain the significance of a production point inside a PPC and a production point on its PPC.
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0987/22 · May/June 2023 · Q1b[2]
Identify two causes of the decrease in the output of sugar in 2020.
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0987/22 · May/June 2023 · Q1d[4]
Explain two reasons why labour mobility may increase in Guyana in the future.
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0987/22 · May/June 2023 · Q3b[4]
Explain one reason why the quantity of land may increase and one reason why the quality of land may increase.
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0987/22 · May/June 2023 · Q5a[2]
Identify the opportunity cost of households spending their income and the opportunity cost of Chinese firms exporting goods and services.
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0987/22 · October/November 2022 · Q2b[4]
Explain the economic problem and why it is always likely to exist.
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What examiners said

There was a full range of responses to this question. The strongest answers recognised that a progressive income tax system takes not just a larger amount of the income of the rich but more significantly a higher proportion of the income of the rich. It is important that candidates are aware that not only a progressive income tax system but also proportional income tax and regressive income tax sy...
— Examiner report, October/November 2023, 0987/22 Q1(d) (Cambridge)

Most candidates were able to give a relevant example but not all were able to give a relevant definition and some confusion was shown between a capital and a consumer good.
— Examiner report, October/November 2023, 0987/22 Q2(a) (Cambridge)

Over time, the quality of production possibility curves drawn by candidates has improved. The diagrams drawn in response to this question were generally good. Most were labelled accurately although a few candidates labelled them as price and quantity or labour and capital. The written analysis tended not to be as strong. A relatively high proportion of candidates showed a confusion between a decre...
— Examiner report, October/November 2023, 0987/22 Q5(c) (Cambridge)

Practise this topic

Answer these questions online and get each one marked against the official mark scheme, with what you missed and how to fix it.

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In the syllabus

1 0455.1.1.1 — finite resources and unlimited wants Definition and examples of the economic problem in the contexts of: consumers; workers; producers; and

finite resources and unlimited wants Definition and examples of the economic problem in the contexts of: consumers; workers; producers; and governments.
economic and free goods The difference between economic goods and free goods.

2 0455.1.1.2 — economic and free goods The difference between economic goods and free goods.

economic and free goods The difference between economic goods and free goods.

3 0455.1.2.1 — definitions of the factors of production and Definitions and examples of land, labour, capital their rewards and enterprise. Examples of the

definitions of the factors of production and Definitions and examples of land, labour, capital their rewards and enterprise. Examples of the nature of each factor of production.
mobility of the factors of production The influences on the mobility of the various factors.
quantity and quality of the factors of The causes of changes in the quantity and quality production of the various factors.

4 0455.1.2.2 — mobility of the factors of production The influences on the mobility of the various factors.

mobility of the factors of production The influences on the mobility of the various factors.

5 0455.1.2.3 — quantity and quality of the factors of The causes of changes in the quantity and quality production of the various factors.

quantity and quality of the factors of The causes of changes in the quantity and quality production of the various factors.

6 0455.1.3.1 — definition of opportunity cost Definition and examples of opportunity cost in different contexts.

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

7 0455.1.3.2 — the influence of opportunity cost on decision Decisions made by consumers, workers, producers making and governments when allocating their r

the influence of opportunity cost on decision Decisions made by consumers, workers, producers making and governments when allocating their resources.

8 0455.1.4.1 — definition of PPC Definition, drawing and interpretation of appropriate diagrams.

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

9 0455.1.4.2 — points under, on and beyond a PPC The significance of the location of production points.

points under, on and beyond a PPC The significance of the location of production points.

10 0455.1.4.3 — movements along a PPC Movements along a PPC and opportunity cost.

movements along a PPC Movements along a PPC and opportunity cost.

11 0455.1.4.4 — shifts in a PPC The causes and consequences of shifts in a PPC in terms of an economy’s growth.

shifts in a PPC The causes and consequences of shifts in a PPC in terms of an economy’s growth.

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