Practise 382 real Economics questions from 2021 to 2026. See the correct answer and a clear explanation the moment you answer.
O Level Economics (Cambridge (CAIE) 2281) is examined in the May/June and Oct/Nov series. Tayyari Karo has real questions from 2021 to 2026 across Paper 1, Paper 2, covering topics such as Demand and supply, Government and the economy, The economic problem, Costs of production and Macroeconomic indicators. The fastest way to improve is to work through real questions and read why each answer is right.
Tayyari Karo collects the real Cambridge (CAIE) Economics questions in one place, sorted by paper and topic. 327 of them are multiple choice and marked instantly, and the rest are structured questions with a full model answer.
These are real past-paper questions. Think of your answer first, then open the explanation.
Which statement about the factors of production is correct?
Answer: D. Land is a natural resource and includes trees and fish.
Land covers all natural resources, including trees and fish.
What is an economist's definition of a market?
Answer: C. a system that enables individuals and firms to buy and sell goods
A market is any arrangement bringing buyers and sellers together, not a physical place.
What is an example of an external benefit from an individual cycling, rather than driving, to work?
Answer: D. reduced congestion for other road users
An external benefit is enjoyed by third parties - here, less congestion for other road users.
In 2018 the US had its lowest unemployment rate for 18 years. Cyclical unemployment was very low and so was the rate of inflation. The US also experienced a rise in labour productivity. However, it did not do so well in reducing poverty: in 2018 approximately 12% of Americans were living in poverty. (a) Define cyclical unemployment. [2] (b) Explain two ways a firm could increase the productivity of its workers. [4] (c) Analyse the advantages of a low rate of inflation. [6] (d) Discuss whether or not a fall in a country's unemployment rate will reduce poverty in that country. [8]
(a) Unemployment caused by a lack of total (aggregate) demand; occurs during a recession or downturn in the trade cycle.
(b) Any two: training to raise skills; better capital equipment and technology; financial incentives such as bonuses or piece rates; improved working conditions and motivation; division of labour and specialisation.
(c) Low inflation gives price stability and certainty so firms invest; keeps exports price competitive, helping the current account; protects the real value of savings and fixed incomes; avoids menu and shoe-leather costs; avoids the arbitrary redistribution caused by high inflation; a low positive rate avoids the problems of deflation. …
The full model answer is in the app.
Number of questions available for each paper.
| Session | Paper 1 | Paper 2 |
|---|---|---|
| May/June 2026 | 29 | 5 |
| May/June 2025 | 29 | 5 |
| Oct/Nov 2025 | 30 | 5 |
| May/June 2024 | 30 | 5 |
| Oct/Nov 2024 | 30 | 5 |
| May/June 2023 | 30 | 5 |
| Oct/Nov 2023 | 30 | 5 |
| May/June 2022 | 30 | 5 |
| Oct/Nov 2022 | 30 | 5 |
| May/June 2021 | 30 | 5 |
| Oct/Nov 2021 | 29 | 5 |
Yes. Every question comes from a real Cambridge (CAIE) Economics (2281) paper from 2021 to 2026. Each one shows the year, session and paper it came from.
You can start free with no signup. A small set of papers per subject is free, and Premium unlocks every paper, the full question bank and the paper PDFs.
Yes. Every question gives you the correct answer straight away with a short explanation, so you learn from mistakes instead of just marking them.
Paper 1, Paper 2 across the May/June and Oct/Nov sessions. Multiple-choice questions are marked automatically, and structured questions show a full model answer.
