Igcse Economics Revision Notes

IGCSE Economics Revision Notes


Note : 

  • All notes shown in the following preview videos are  available as pdf notes and are completely downloadable and printable to all the members of the IGCSE Economics  Course.
  • The Course purchase will give you access to IGCSE Economics mind maps/ video lectures/topic questions /syllabus copies/Specimen papers/ IGCSE Economics key definitions and  all new resources that will be additionally added from time to time.
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Video 1:Unit 1: The basic Economic Problem 

Video 2: Unit 2 : Allocation of resources       

Video 3 : Unit 3 : Microeconomic Decision Makers   

IGCSE Economics Revision Notes/Study notes/Mind maps/Cheat Sheets

Following are the IGCSE Economics Revision Notes  for  syllabus valid for 2022/2023/2024 Exams.The notes are special in that they also guide you into the key points of answering the board exam questions as per the marking scheme. This is a very popular resources when it comes to  Last minute Board Exam Revision, when a day before , you do not have enough time to  read through every single text book page.

The Basic Economic Problem Revision Notes:

 About these notes:

  • The first sub-topic is finite resources and unlimited wants.It includes key points such as the economic problem, reason why it cannot be solved, the nature of the economic problem, the economic and the free good.The data mentioned below is a part of our economic notes

1. The economic problem: It is due to scarcity that there exists a basic economic problem of not being able to satisfy the want's of all people.

2. The economic problem can never be solved because the economic problem is scarcity. As we know the wants are infinite but resources are limited. The wants exceed resources as wants grow faster than resources 


At any given point of time in an economy, output is limited by the resources and the technology available. There is therefore a basic condition of scarcity. On the other hand, the wants of the consumers are infinite or unlimited and the ability of the resources to satisfy those wants however are limited. There is therefore a need to make a choice as a result of this scarcity. This choice will be in terms of what to produce, how to produce and for whom to produce.

1. Economic good: An economic good has a benefit to the society.It  is a consumable good that is useful to people but  at the same time scarce in relation to its demand. Also economic goods have a price. Human effort is required to obtain economic goods.Economic goods come with an opportunity cost.Examples of economic goods include:Piped gas,, electricity, cars, mobiles etc.

2. Free good: It is a product that does not require any resources to make it and so does not have an opportunity cost.Example of free goods are: air, water, wind etc.The differences between free goods and economic goods is also mentioned 

The next topic Opportunity Cost  has a set of important key points. These points included are based on the data extracted from IGCSE Past papers, keeping in mind the syllabus requirements.Once again there are board exam  questions, this time multipke choice  questions , including graphical questions have been explained. The idea is to help you to apply the concepts learnet by  you in novel situations. After all that is what IGCSE Economics is all about.

The next topic is The Production Possibility Curve.In this topic , you will come across key points such as movements along the PPC,points above , below and on the PPC, including description of the bow shaped PPC and the straight line PPC.All this followed by Board Exam Questions.

It is better that you refer to the videos for the various topis that five you a quick look at the actual IGCSE EConomcis Revision Notes. Note that  the notes are revised as and whan felt necessary by CAIE.

Allocation of Resources revision Notes:

This topic covers sun-topic such as :Microeconomics an dmacroeconomics/ The role of markets in allocating resources/Demand Supply/Price determination. More than me telling you , you need to view the adjoining video to understand the layout of these notes. Infact a video preview will enable you to understand what makes our notes so very popular and in high demand. All credis to our dedicated team, that work hard to get the best resources to you








Topic 3 : Microeconomic decision makers

Sub-topics included are: factors affecting individual choice of occupation/ Wage determination/ Reasons for difference in earnings/ Specialisation/Workers/Trade unions./Classification of firms/Small firms/Causes of growth of firms/Mergers/Economies and diseconomies of scale/ Demand for the factors of production/Labour intensive and capital intensive production/Production and productivity/Competitive and monopoly markets.Loaded with questions from IGCSE Economics past papers where ever appropriate, giving you hints on what needs to be included as a part of your answers, these notes are an ideal guide for acing your IGCSE's









Will provide you with a video preview for section 6 soon.

Note that the IGCSE Economics Revision Notes come free with our website course  membership . This membership includes, superbly seggragated IGCSE Past Paper questions topic wise . The distinguishing point here is that we provide questions on the largest number of smaller topics. The following video will guide you on the contents of IGCSE Economics membeship. Videoa are also being added regularly so that learning new concepts becomes fun and easy too.













igcse eco membership video.mp4 from Smart Exam Resources on Vimeo.


Mind maps

  • Mind maps are  an important tool in strengthening the concepts by building connections between ideas in a creative manner.One can learn concepts with clarity in an interesting way.
  • Here are a few mind maps that are free for all. yes that right free for all!While we have uploaded images of a few mind maps here, you can also access more mind maps for different igcse subjects such as IGCSE Biology/IGCSE Physics/IGCSE Chemistry etc. by clicking in the link below.
  • In the mean while enjoy going through the following mind maps.



The following factors affect the demand of a product:

1. The price of the product

2. Changes in income

3. Price of substitute goods/services

4. Price of complementary goods/services

5.Changes in income

6.Changes in tastes and preferences of customers

So any time, a diagramatic display of learning material sparks an element of interest.

MIND MAP 2: Characteristics of developing economies:


Characteristics of developing economies:

1. Low level of health care

2. Low level of education

3. Low level of savings

4. High rate of population growth

5. Low income per head

6. Low life expectancy

7.High infant mortality rate

8.Low level of capital investment

9.Poor infrastructure

10.Poor housing and sanitation

11.High proportion of workers in the primary sector


Mind map 3: Functions of a commercial bank


Functions of commercial bank:

1.Acceptance of accounts in savings and current accounts

2.Enable customers to make payments

3.Can lend money

4.Provide traveler cheque/Foreign currency

5.Accept deposits of valuables

6.Advice on financial matters

7.Buy/Sell shares for customers

Mind Map 4:  Aims of decision makers




Note: All details mentioned in the mind  maps are a part of mark schemes. Students are requested to carefully study them. These mind maps are a great help from exam point of view and also to develop mastery of concepts other wise


Following is some additional data  which you may find useful too, along with some board exam questions and answers for IGCSE Economcis

1. State the difference between Microeconomics ans macro economics


2. State the factors affecting borrowing

Factors affecting borrowing:

1.Availability of loans and overdrafts

2. Rate of interest

3. Confidence

4. Social attitudes

3. State the factors affecting the demand of a prodcut

The following factors affect the demand of a product:

1. The price of the product

2. Changes in income

3. Price of substitute goods/services

4. Price of complementary goods/services

5.Changes in income

6.Changes in tastes and preferences of customers

4. State the functions of money

Functions of money are as follows:

1. Acts as a medium of exchange

2. It is a standard of deferred payments

3. It is a nit of account

4. It is a store of value

5. Define enterprise

Enterprise is a factor that takes the risk in bringing the other factors together or combining the other factors in order  to produce goods and services to make profits . Enterprise involves the taking of decisions in terms of what to produce and how to produce. Enterprise is taken by entrepreneurs example shareholders who receive profit as reward

6. Using examples, define the factor of production capital

Capital can be defined as any human-made good that is used to produce other goods and services; that is they are aids to production. Examples of capital are factories, machinery, tools, equipments etc.

7. What affects the mobility of factors of proction:



1.Difference in the price and the availability of housing in different areas and countries

2. Family ties

3. Difference in the educational system in different ares and countries

4. Restrictions on the movement of workers

5.Lack of information

Some more useful material to go through:

The economic resources of land, labour, capital and enterprise are called as the factors of production.

1. Land: It refers to all the natural resources used in the production such as oil, coal etc. In addition, the water, plants, animals etc are also included. Example: Farmland, minerals, sea. Land resources are the raw materials in the production process. These resources can be renewable, such as forests, or nonrenewable such as oil or natural gas.Land gives us rent

2. Labour: Labour stands for the human effort (mental or physical) that is used in producing goods and services. Example: A teacher, workers.Infact all people with their efforts , abilities and skills are termed as labour.labour gives us wages

3. Capital: Capital refers to all the human made (man-made) goods used in production. Example: Machinery and equipment, factories, conveyor belts, computers, delivery vans etc.Capital gives us interest.

4. Enterprise: It refers to the risk bearing and the key decision-making function in a business. This is needed as some events cannot be anticipated beforehand and might not qualify for being insured. Example: An entrepreneur.Enterprise gives us profit



1.It is the study of  the behaviour and the decision of households and firms and the performance of individual markets.

2.Studies variables such as the amount of a firm’s output or of a consumer’s income etc.

MARKET: It is an arrangement which brings buyers into contact with sellers


1.It is the study of the whole economy.

2.It studies the aggregate economic behaviour. That is the behaviour of aggregate economic agents on aggregate economic markets.

3.It deals with the economic issues  that affect the entire economy and most of the society.

4.It studies aggregate variables such as gross domestic product, national income, aggregate demand, general price level, rate of unemployment