How do I answer an IGCSE Economics multiple-choice question?
- One-mark MCQs appear in Paper 1 only
- There are 40 MCQs
- You can see more information on the Paper 1: Multiple Choice page
Systematic steps to help you succeed in MCQ exams
1. Read the question stem carefully
- Focus on exactly what the question is asking
- Identify whether it is testing:
- a definition
- a numerical idea
- a diagram
- a cause-effect relationship
2. Underline key words in the stem
- Look for words such as:
- increase / decrease
- most likely / best explains
- scarcity / opportunity cost / elasticity
- These help you avoid misreading the question
3. Cover the options and think of the answer first
- Try to answer from your own knowledge before looking at the choices
- This helps you avoid being misled by distractors
Remember
Distractors are written to trap common misconceptions
Most wrong options are designed to reflect:
- misunderstanding of a definition
- confusing a shift with a movement
- mixing up cause and effect
- ignoring key words like “fall”, “less elastic”, “opportunity cost”
If an option sounds nearly right but slightly off, it’s probably the distractor
4. Eliminate obviously incorrect options
- Remove answers that:
- contradict definitions
- do not match the diagram
- mix up micro and macro concepts
- contain extreme words like “always” or “never”
- You should aim to narrow it down to two choices
5. Compare the remaining options logically
- Ask yourself which option:
- directly fits the economic concept
- follows the correct cause → effect chain
- matches the data or numerical relationship
- The best answer is the one that is always true, not just sometimes true
Remember
The correct answer must be true in every possible scenario the question describes
If an answer is:
- only true sometimes
- dependent on extra assumptions
- true for a special case
it is almost certainly not the correct response
6. Use diagrams where relevant (mentally)
- For demand and supply questions:
- visualise the shift
- think about the direction of price and quantity
- For elasticity questions:
- imagine steep vs shallow curves
- You don’t need to draw diagrams on the paper – but visualising them helps
7. Check the units in numerical questions
- Percentage?
- Index number?
- Millions or billions?
- Make sure your mental calculation matches the scale given
8. Make a decision – and move on
- Do not spend too long on any one question
- You have approximately 1.5 minutes per question
- If you can’t decide between two answers, choose the one that fits economic logic, not the one that sounds appealing
Example
The table shows the quantity that producers are willing to supply at different price levels.
| price ($) | quantity supplied |
|---|---|
| 120150180 | 204080 |
If the price increases from $120 to $180, what would be the price elasticity of supply?
A. 0.16
B. 4
C. 6
D. 60
Mark Scheme & Guidance
C is correct as substituting the values into the PES formula (% change in QS / % change in price) results in the following: 3 / 0.5 = 6
- A is incorrect as 0.16 is an incorrect application of the PES formula
- B is incorrect as a value of 4 is an incorrect application of the PES formula
- D is incorrect as a value of 60 refers to the absolute changes in price and quantity and not the calculated PES using percentages
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