Cambridge IGCSE Economics 0455 Paper 1 Mock Test 4 (Online, with Solutions)

About 0455 Paper 1 Mock Test 4

Fourth full 0455 Paper 1 practice test: 30 new questions in 45 minutes. Take it in the final days before the exam to check you are ready.

It has 30 questions to finish in 45 minutes, the same time as the real 0455 Paper 1, which is sat on Wednesday 4 November 2026, afternoon (zone 4). There is one mark per question and no negative marking.

Topics in this mock

• The basic economic problem3
• The allocation of resources6
• Microeconomic decision makers7
• Government and the macroeconomy8
• Economic development2
• International trade and globalisation4

Worked examples (not from this test)

Try each one, then open the solution. They use the same methods as the questions in the mock.

1. The basic economic problem
   Is the water in a river a free good or an economic good?
   Show answer and working

   1. A free good has no opportunity cost because it is not scarce.
   2. River water used by farms, factories and towns is scarce, so using it for one purpose means less for another: it is an economic good.
   3. Air is a better example of a free good.

   Answer: It depends: an economic good if it is scarce and has alternative uses.

2. The allocation of resources
   At $5, quantity demanded is 300 and quantity supplied is 300. At $6, quantity demanded is 260 and quantity supplied is 360. What is the equilibrium price, and what happens at $6?
   Show answer and working

   1. Equilibrium is where quantity demanded equals quantity supplied: $5 (300 units).
   2. At $6 supply (360) is greater than demand (260), so there is a surplus of 100 units.
   3. Sellers would cut prices until the market returns to $5.

   Answer: Equilibrium is $5; at $6 there is a surplus of 100.

3. Microeconomic decision makers
   10 workers produce 400 units a day. After training, the same 10 workers produce 460 units. What has happened to labour productivity?
   Show answer and working

   1. Labour productivity = output ÷ number of workers.
   2. Before: 400 ÷ 10 = 40. After: 460 ÷ 10 = 46.
   3. Increase = (46 − 40) ÷ 40 × 100 = 15%.

   Answer: It rose from 40 to 46 units per worker (15%).

4. Government and the macroeconomy
   Nominal GDP rises by 6% and inflation is 4%. Roughly what is real economic growth?
   Show answer and working

   1. Real growth removes the effect of price rises.
   2. Real growth ≈ nominal growth − inflation = 6% − 4% = 2%.

   Answer: about 2%

5. Economic development
   A country of 50 million people has a birth rate of 20 per thousand, a death rate of 9 per thousand and net migration of −100 000. By how much does its population change in a year?
   Show answer and working

   1. Natural increase = (20 − 9) per thousand × 50 000 thousand = 11 × 50 000 = 550 000.
   2. Add net migration: 550 000 − 100 000 = 450 000.
   3. The population grows by 450 000 to 50 450 000.

   Answer: It rises by 450 000.

6. International trade and globalisation
   Give one advantage of a floating exchange rate and one advantage of a fixed exchange rate.
   Show answer and working

   1. A floating rate is set by demand and supply, so the central bank does not need large reserves and interest rates can be used for other aims.
   2. A fixed rate gives exporters and importers certainty about prices, which encourages trade and investment.

   Answer: Floating: no reserves are needed to defend it. Fixed: certainty for traders.

More practice: Mock Test 1 · Mock Test 2 · Mock Test 3 · All 0455 Paper 1 mock tests, exam facts and FAQ

Written and checked against the Cambridge International syllabus by the The Vector Academy economics team. Last updated 29 October 2026.