CAIE IGCSE Business 0264 - Paper 2

6.1 Economic issues

Topical Past-Paper Questions

Why it’s here: The business cycle, inflation, interest rates, unemployment and exchange rates.

CAIE IGCSE Business 0264 Paper 2 Topic 6.1

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Key concepts to revise

The main ideas to know for 6.1 Economic issues.

Business cycle

Growth and recession change demand, employment, investment and confidence.

Inflation

Rising prices affect costs, wages, demand and competitiveness.

Interest rates

Rate changes influence borrowing costs, saving and consumer spending.

Exchange rates

Currency movements affect import costs and export competitiveness.

About this topic

Economic issues includes selected 0450 questions that continue to align with the Cambridge IGCSE Business 0264 syllabus.

Keep every answer connected to the business in the case study.

Use the case-study evidence
Develop each explanation fully
Show working for calculations
Justify the final recommendation

Before you begin

1Read the command word
2Check the marks available
3Study every table or figure
4Apply the answer to the business

Exam material

Past-paper questions

Past-paper question 0450/21/M/J/25 [8] marks

1(a) Explain one effect on PF of the increase in each of the two taxes outlined in Appendix 2. [8] [ Click here for the Case Study Insert ] Tax on people’s income: Explanation Tax on profit made by businesses: Recommendation:

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