Free Common Mistakes / Misconceptions Lists

Download clean, printable lists of the most common mistakes students make — so you can fix them before they cost marks.

Each sheet is aligned to its exam board and built from recurring student errors highlighted in examiner reports and mark schemes.

Cambridge IGCSEEconomics (0455)CSV + Printable PDFFree download

What you get

A topic-by-topic mistakes list with a “do this instead” fix and a quick self-check.

How to use it

Review before past papers, then use the quick checks to catch errors under timed conditions.

Why it works

Many marks are lost on predictable slips: rounding, sign errors, units, and misreading commands.

Coverage by topic

Basic Economic Problem3Demand2Economic Growth1Equilibrium1Exchange Rates2Fiscal Policy1Inflation2International Trade2Market Failure3PED3Supply2Unemployment1YED1
Alignment note: Practical revision checklist. Always verify against official Cambridge specification and examiner guidance.

Preview (up to 5 per topic)

24 total rows in download

TopicCommon mistake / misconceptionDo this insteadQuick check
Basic Economic ProblemSaying scarcity means there is 'not enough of everything'.Scarcity = unlimited wants but LIMITED resources — it is a relative concept, not absolute shortage. Every society faces it.Scarcity = unlimited wants + finite resources = choices must be made.
Basic Economic ProblemConfusing opportunity cost with monetary cost.Opportunity cost = the next best alternative FOREGONE, not the price paid. It is a cost in terms of what you give up.What is the next best option given up? That is the opportunity cost.
Basic Economic ProblemListing only one factor of production when the question asks for all four.Land (natural resources), Labour (human effort), Capital (man-made goods used in production), Enterprise (risk-taking/organising).Did you give all four: Land, Labour, Capital, Enterprise?
DemandConfusing a movement along the demand curve with a shift of the demand curve.Movement = caused ONLY by a change in PRICE. Shift = caused by any non-price factor (income, tastes, related goods, expectations).Did the PRICE change → movement. Did something ELSE change → shift.
DemandSaying demand increases when price falls (confusing law of demand with a shift).Price falls → quantity demanded increases (movement along curve). The DEMAND CURVE itself does not shift when price changes.Price change → Qd changes (movement). Non-price → D curve shifts.
SupplySaying higher costs increase supply.Higher costs of production → firms produce less at each price → supply DECREASES (curve shifts left).Higher costs = less profit = less supply = shift LEFT.
SupplyForgetting that a subsidy shifts the supply curve to the RIGHT.A subsidy reduces firms' costs → they can supply more at each price → supply increases (curve shifts RIGHT, price falls).Subsidy = government pays producers = costs fall = more supply.
EquilibriumStating price rises 'because demand increased' without explaining the mechanism.Demand increases → at original price, excess demand (shortage) → price rises → Qd falls, Qs rises → new equilibrium.Show the shortage/surplus mechanism: excess demand/supply → price adjusts.
PEDForgetting PED is always negative (price and Qd move in opposite directions).PED = % change Qd ÷ % change P. Always negative. We use the absolute value to compare magnitude.Price rises → Qd falls → PED is negative.
PEDConfusing elastic demand with inelastic demand in terms of revenue.Elastic (|PED|>1): price rise → total revenue FALLS. Inelastic (|PED|<1): price rise → total revenue RISES.Price and TR move SAME direction for inelastic; OPPOSITE for elastic.
PEDSaying luxury goods are always elastic without explaining why.Luxuries are elastic because consumers can easily go without them; many substitutes available; large proportion of income.Give the REASON: substitutes, income proportion, necessity vs luxury.
YEDConfusing positive YED (normal good) with negative YED (inferior good).YED>0 = normal good (demand rises with income). YED<0 = inferior good (demand falls as income rises e.g. own-brand food).YED negative = inferior (people switch away when richer).
Market FailureSaying a negative externality means the market produces 'too little'.Negative externality (e.g. pollution): social cost > private cost → market overproduces → output is TOO HIGH, not too low.Negative externality = over-production. Positive externality = under-production.
Market FailureConfusing public goods with government-provided goods.Public good = non-excludable AND non-rival (e.g. national defence). Government CAN provide private goods too. Not the same thing.Test: Is it non-excludable AND non-rival? If yes → public good.
Market FailureSaying a tax always solves a negative externality.A tax may reduce the externality but only corrects the market failure if set exactly equal to the external cost — difficult in practice.Tax helps but may not fully correct. Mention difficulty of measuring external cost.
Economic GrowthConfusing economic growth with development.Growth = increase in real GDP. Development = improvements in living standards (health, education, equality). Growth can occur without development.GDP measures output; HDI/development measures wellbeing.
InflationSaying 'prices rise' is enough to define inflation.Inflation = SUSTAINED rise in the GENERAL price level over time. One price rising is not inflation. Measured by CPI.Need: sustained + general + price level. Not just 'prices go up'.
InflationConfusing demand-pull and cost-push inflation.Demand-pull: too much demand (AD rises faster than AS). Cost-push: supply-side costs rise (wages, oil) → firms raise prices.What caused it? Rising demand (demand-pull) or rising costs (cost-push)?
UnemploymentSaying 'low wages' is a type of unemployment.Types: cyclical (recession), structural (skills mismatch), frictional (between jobs), seasonal. Low wages is not a type of unemployment.Give the specific TYPE and its CAUSE, not a description of its effects.
Fiscal PolicyConfusing budget deficit with national debt.Budget deficit = government spends MORE than it collects in tax IN ONE YEAR. National debt = accumulated total of all past deficits.Deficit = annual shortfall. Debt = total accumulated borrowing.
International TradeConfusing absolute advantage with comparative advantage.Absolute advantage = produces more with same resources. Comparative advantage = lower OPPORTUNITY COST. Trade based on comparative, not absolute.Calculate opportunity costs. Comparative advantage goes to lower opp. cost.
International TradeSaying protectionism always benefits an economy.Protectionism can protect jobs short-term but leads to higher prices for consumers, reduced efficiency, and retaliation from trading partners.Always weigh: who benefits (domestic producers) vs who loses (consumers, efficiency).
Exchange RatesSaying a stronger currency is always better.Strong currency → imports cheaper (consumers benefit), but exports more expensive → exporters lose competitiveness → trade balance may worsen.Strong £ = cheaper imports, dearer exports. Evaluate both effects.
Exchange RatesConfusing appreciation with depreciation.Appreciation = domestic currency buys MORE foreign currency (gets stronger). Depreciation = buys LESS (gets weaker).Appreciate = worth more. Depreciate = worth less against other currencies.
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FAQ

What is the Cambridge IGCSE Economics (0455) common mistakes list?

A downloadable list of frequent mistakes in diagrams, explanations and evaluation—paired with a fix and a quick self-check.

Does this help with “analyse” and “evaluate” questions?

Yes. Many rows focus on common evaluation pitfalls: missing chain-of-reasoning, weak conclusions, and not using the context/data.