Cambridge International · IGCSE · 0455
Economics — Keywords & Key Terms — Definitions Glossary (2026)
Cambridge IGCSE Economics (0455)
Topic-by-topic keywords, key terms and definitions for precise exam language—separate from our revision checklists (topic coverage) and formula sheets (equations).
Keywords & Key Terms — definitions
Examiner-style keywords and definitions organised by syllabus topic. Terms are tagged Essential (start here), Core (typical exam standard), and Advanced for harder distinctions — tick each row when you can recall it. Your progress is saved in this browser for this list.
Cambridge International IGCSE Economics (0455)
Cambridge International IGCSE Economics (0455)
Cambridge IGCSE Economics (0455)
Aligned to Cambridge IGCSE Economics 0455 (2026): basic problem, microeconomics, macroeconomics, development and international trade.
Mark schemes: Definitions should be precise and often benefit from a short example. Longer questions reward balanced argument, use of diagrams (e.g. supply and demand), and a clear conclusion.
Active recall: 0 / 31 terms ticked
| Recalled | Topic | Level | Keyword | Definition |
|---|---|---|---|---|
| The basic economic problem | Essential | Wants | Desires for goods and services — effectively unlimited. | |
| The basic economic problem | Essential | Resources | Inputs that are scarce: land, labour, capital, enterprise. | |
| The basic economic problem | Core | Scarcity | Unlimited wants vs limited resources — forces choice. | |
| The basic economic problem | Core | Opportunity cost | Next best alternative given up when a choice is made. | |
| The basic economic problem | Core | Factors of production | Land, labour, capital, enterprise — rewards: rent, wages, interest, profit. | |
| The basic economic problem | Advanced | Production possibility curve | Shows maximum combinations of two goods with given resources; illustrates opportunity cost and growth. | |
| Microeconomics — markets | Essential | Demand | Quantity consumers willing and able to buy at each price. | |
| Microeconomics — markets | Essential | Supply | Quantity producers willing and able to sell at each price. | |
| Microeconomics — markets | Core | Market equilibrium | Where demand and supply curves intersect — clearing price. | |
| Microeconomics — markets | Core | Price elasticity of demand (PED) | Responsiveness of quantity demanded to price change. | |
| Microeconomics — markets | Core | Price elasticity of supply (PES) | Responsiveness of quantity supplied to price change. | |
| Microeconomics — markets | Core | Consumer surplus | Difference between willingness to pay and price paid. | |
| Microeconomics — markets | Core | Producer surplus | Difference between price received and minimum acceptable price. | |
| Microeconomics — markets | Advanced | Market failure | Resources misallocated — e.g. externalities, missing markets. | |
| Microeconomics — markets | Core | Indirect tax | Tax on goods/services — shifts supply curve. | |
| Microeconomics — markets | Core | Subsidy | Payment to producers/consumers — shifts supply or demand. | |
| Firms & production | Essential | Fixed cost | Does not vary with output in short run. | |
| Firms & production | Core | Variable cost | Varies with output. | |
| Firms & production | Core | Total cost | Fixed + variable. | |
| Firms & production | Core | Revenue | Price × quantity sold. | |
| Firms & production | Core | Profit | Total revenue − total cost. | |
| Firms & production | Advanced | Economies of scale | Unit costs fall as output rises — reasons at IGCSE level. | |
| Macroeconomics & trade | Essential | Inflation | Sustained increase in general price level. | |
| Macroeconomics & trade | Core | GDP | Total value of output/income in an economy over a period. | |
| Macroeconomics & trade | Core | Unemployment | People able and willing to work but without employment. | |
| Macroeconomics & trade | Core | Economic growth | Increase in real GDP over time. | |
| Macroeconomics & trade | Core | Fiscal policy | Government spending and taxation. | |
| Macroeconomics & trade | Core | Monetary policy | Interest rates and money supply — central bank role simplified. | |
| Macroeconomics & trade | Advanced | Comparative advantage | Lower opportunity cost — basis for specialisation and trade. | |
| Macroeconomics & trade | Core | Exchange rate | Price of one currency in terms of another. | |
| Macroeconomics & trade | Core | Trade surplus / deficit | Exports vs imports of goods and services. |
Pair this with our revision checklists, formula sheets hub and past paper finder.
Economics (0455) — Keywords & Key Terms FAQ
- What is on this Cambridge International IGCSE Economics keywords and key terms list?
- It is a topic-organised glossary of important economics terms with short, exam-style definitions aligned to Cambridge IGCSE Economics (0455) (0455). It is designed for “define”, “state”, “outline” and “explain” questions where precise vocabulary earns marks.
- How should I use this Economics glossary alongside past papers?
- Tick terms when you can recall them without reading the answer, then check your wording against mark schemes. Pair vocabulary practice with past papers for IGCSE Economics (0455) so you apply terms in context.
- Is this the same as a revision checklist or a formula sheet?
- No. Revision checklists help you track which syllabus topics you have covered and your confidence—separate pages on Tutopiya. Formula sheets summarise equations and quantitative relationships. This page is only a definitions and key-terms glossary for Economics.
- Can I download this Economics keywords and key terms list for free?
- Yes. After a quick free sign-up you can download a UTF-8 CSV (opens in Excel or Google Sheets) or open a print-friendly page and save as PDF. Browsing the list on the page is free.
- Is this Economics list aligned to the 0455 specification?
- Topic groupings and wording follow Cambridge IGCSE Economics (0455) for Cambridge International IGCSE. Always confirm final learning objectives and any regional options in your official specification and recent examiner reports for your exam session.
- Why focus on definitions instead of full notes?
- Mark schemes reward correct technical terms and clear links between ideas. A compact glossary lets you drill the exact language examiners expect for Economics at IGCSE, separate from longer notes or topic trackers.