IGCSE Economics (0455) Syllabus: Every Unit & Topic (2026)

The Cambridge IGCSE Economics (0455) syllabus is built from six numbered units, running from The Basic Economic Problem all the way to International Trade & Globalisation. This complete map lays out every unit and its topics so you can plan revision without missing anything — and each leaf topic links straight to targeted practice with instant marking.

1. The Basic Economic Problem

The foundation of the whole course: why choices have to be made when resources are finite but wants are unlimited.

1.1 The Nature of the Economic Problem

• Scarcity

1.2 The Factors of Production

• The Factors & Their Rewards
• Changes to the Factors of Production

1.3 Opportunity Cost

• Opportunity Cost in Decision Making

1.4 Production Possibility Curves

• PPC & Economic Growth

2. The Allocation of Resources

How markets use price signals to decide what is produced, how and for whom — plus where markets fail.

2.1 Microeconomics & Macroeconomics

• Differences Between Micro & Macro

2.2 The Role of Markets in Allocating Resources

• The (Free) Market System

2.3 Demand

• Demand, Price & Quantity
• Conditions of Demand

2.4 Supply

• Supply, Price & Quantity
• Conditions of Supply

2.5 Price Determination

• Equilibrium & Disequilibrium

2.6 Price Changes

• Changing Market Conditions

2.7 Price Elasticity of Demand (PED)

• Calculation & Determinants of PED
• The Significance of PED

2.8 Price Elasticity of Supply (PES)

• Calculation, Determinants & Significance of PES

2.9 Market Economic System

• The (Free) Market System

2.10 Market Failure

• Market Failure Terminology
• Causes & Consequences
• Government Intervention to Address Market Failure

2.11 Mixed Economic System

• Characteristics of a Mixed Economic System

3. Microeconomic Decision Makers

The individual agents in the economy — money and banks, households, workers, trade unions and firms.

3.1 Money & Banking

• Understanding Money
• Central & Commercial Banks

3.2 Households

• Spending, Saving & Borrowing

3.3 Workers

• Factors Affecting Choice of Occupation
• Wage Determination
• Wage Differentials
• Division of Labour & Specialisation

3.4 Trade Unions

• Types of Trade Unions
• The Role of Trade Unions
• Advantages & Disadvantages of Trade Unions

3.5 Firms

• Classification of Firms
• Small Firms
• The Growth of Firms
• Economies & Diseconomies of Scale

3.6 Firms & Production

• Demand for the Factors of Production
• Labour & Capital-intensive Production
• Production & Productivity

3.7 Firms' Costs, Revenue & Objectives

• Costs & Revenue
• Objectives of Firms

3.8 Market Structure

• Competitive Markets
• Monopoly Markets

4. Government & the Macroeconomy

The big picture: government aims and the fiscal, monetary and supply-side tools used to manage growth, jobs and prices.

4.1 The Role of Government

• Local, National & International

4.2 The Macroeconomic Aims of Government

• The Five Macroeconomic Aims
• Conflicts Between Macroeconomic Aims

4.3 Fiscal Policy

• The Government Budget
• Taxation
• Fiscal Policy Measures

4.4 Monetary Policy

• Monetary Policy Measures

4.5 Supply-side Policy

• Supply-side Policy Measures

4.6 Economic Growth

• Measures of Economic Growth
• Causes & Consequences of Growth
• Causes & Consequences of Recessions
• Policies to Generate Economic Growth

4.7 Employment & Unemployment

• Understanding Employment
• Measurement of Unemployment
• Types of Unemployment
• Consequences of Unemployment
• Policies to Reduce Unemployment

4.8 Inflation & Deflation

• Definitions & Measurement
• Causes & Consequences of Inflation
• Causes & Consequences of Deflation
• Policies to Control Inflation & Deflation

5. Economic Development

Why countries differ in prosperity — living standards, poverty, population change and the drivers of development.

5.1 Living Standards

• Indicators of Living Standards
• Living Standards & Income Distribution

5.2 Poverty

• Causes of Poverty
• Policies to Alleviate Poverty

5.3 Population

• Population Growth
• Effects of Changing Population Sizes

5.4 Differences in Economic Development

• Reasons for Differences in Development

6. International Trade & Globalisation

How economies connect — specialisation, free trade and protection, exchange rates and the balance of payments.

6.1 International Specialisation

• Reasons for National Specialisation

6.2 Globalisation, Free Trade & Protection

• Globalisation
• Free Trade
• Protection

6.3 Foreign Exchange Rates

• Introduction to Exchange Rates
• Exchange Rate Fluctuations

6.4 Current Account of Balance of Payments

• Components of the Current Account
• Deficits & Surpluses
• Stabilisation Policies

How to use this syllabus map

1. Audit every unit first
   Tick off each sub-section you're confident with and flag the gaps. Because 0455 spans six broad units, a quick RAG-rate of the whole map stops nasty surprises in the exam.
2. Drill definitions and diagrams together
   For each topic, learn the exact term and the diagram that goes with it. Demand, supply, elasticity and market failure are the diagram-heavy areas — practise sketching them fast and accurately.
3. Practise evaluation on the policy topics
   Units 4–6 are where extended, evaluative answers live. Rehearse two-sided chains — "this could work because… however it depends on…" — on fiscal policy, unemployment and protection.
4. Convert each leaf into past-paper reps
   Click through to a topic, answer real questions and get instant marking, then move to the next leaf. Turn the map into a checklist you clear unit by unit.

FAQ

Six units, one clear path: audit the map, lock in your definitions and diagrams, then practise evaluation on the policy topics until it's second nature. Work through the leaves above unit by unit and you'll walk into the 0455 exam knowing exactly what can come up — and how to earn the marks when it does.