Cambridge IGCSE Economics 0455: Command words and keywords

Cambridge IGCSE Economics (0455) uses the standard Cambridge command words. Mark schemes reward accurate economic terminology and correct response to command words. Extended questions use levels-based marking; balance and conclusion matter for Assess, Evaluate and Discuss.

Command words in Economics 0455

Command word	What to do in Economics	Common mistake
State	Short answer; one point per mark	Overwriting
Identify	Choose from data/diagram	Adding explanation
Define	Precise economic meaning	Vague or everyday language
Describe	What the data/diagram shows; no “why”	Adding explanation
Explain	Why or how; use “because”	Only describing
Suggest	Apply to context; propose reasons	Textbook recall
Compare	Similarities and differences	Listing separately
Contrast	Differences only	Including similarities
Assess	Judge importance; conclude	Description only
Evaluate	Judge; conclude with evidence	No conclusion
Discuss	Explore aspects; conclude	One-sided
Calculate	Work out; show working; units	Missing working or units
Outline	Main points	Too much detail

Economic keywords examiners look for

Microeconomics

Term	Use correctly	Avoid
Demand	Quantity wanted at each price	”Want”
Supply	Quantity offered at each price	”Have”
Equilibrium	Where demand = supply	”Balance”
Elasticity	Responsiveness to change	”Sensitive”
Price elasticity of demand	% change in quantity / % change in price	Wrong formula
Substitute	Alternative good	”Similar”
Complement	Good used together	Substitute
Opportunity cost	Next best alternative forgone	”Cost”
Scarcity	Limited resources; unlimited wants	”Shortage”
Factor of production	Land, labour, capital, enterprise	”Resource”
Division of labour	Specialisation in tasks	”Sharing work”
Economies of scale	Lower average cost as output rises	”Bigger is cheaper”
Diseconomies of scale	Higher average cost as firm grows	Economies
Monopoly	One seller; high barriers	”Big company”
Competition	Many firms; low barriers	Monopoly

Macroeconomics

Term	Use correctly	Avoid
GDP	Gross Domestic Product; measure of output	”Wealth”
Inflation	Rising general price level	”Expensive”
Unemployment	People seeking work but without jobs	”Jobless”
Fiscal policy	Government spending and taxation	Monetary policy
Monetary policy	Interest rates; money supply	Fiscal policy
Exchange rate	Price of one currency in another	”Value”
Balance of payments	Record of transactions with rest of world	Trade balance
Economic growth	Increase in real GDP	”Development”
Recession	Negative growth for two quarters	”Depression”
Standard of living	Material well-being	Quality of life
Development	Broader than growth; includes HDI	Growth only

Development and international

Term	Use correctly	Avoid
Primary sector	Agriculture; raw materials	”Farming”
Secondary sector	Manufacturing	”Factories”
Tertiary sector	Services	Secondary
HDI	Human Development Index	”Development”
Aid	Assistance from one country to another	Trade
Trade	Exchange of goods/services	Aid
Tariff	Tax on imports	Quota
Quota	Limit on quantity	Tariff
Liberalisation	Reducing barriers to trade	”Free trade” (vague)
Sustainability	Meets need without compromising future	”Green”

What examiner reports say

• Define—precise economic definitions; avoid repetition of the term.
• Describe vs Explain—Describe = what the data shows; Explain = why.
• Assess / Evaluate / Discuss—need conclusion; balance different aspects.
• Data questions—use the data; quote figures when relevant.
• Diagram questions—label correctly; explain shifts.
• Calculation—show working; correct units.

Tips for Economics 0455

1. Underline the command word before answering.
2. Define precisely—e.g. “Opportunity cost is the next best alternative forgone when making a choice.”
3. Use data when the question provides it—quote figures.
4. Reach a conclusion for Assess, Evaluate, Discuss.
5. Show working in calculations.
6. Past papers + mark schemes show acceptable wording.

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Based on Cambridge IGCSE Economics 0455 syllabus and mark schemes. Check the latest syllabus for your exam series.