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GCE Economics Past Questions and Answers

Published on Sep 11, 2025 • Education

Introduction

Economics is one of the most important subjects in the GCE exam. To perform well, students must understand concepts such as budget systems, agriculture, and economic structures. In this guide, we’ll review solved GCE Economics past questions and add extra practice questions with answers.

Worked Questions

Question 1 – Fiscal Policy

If government revenue receipts are less than expenditure in a fiscal year, the country is said to have:

A. Balanced budget
B. Deficit budget
C. Surplus budget
D. Capital budget

Answer: B. Deficit budget
A deficit budget occurs when expenditure exceeds revenue. Conversely, a surplus budget arises when revenue is greater than expenditure, and a balanced budget happens when they are equal.

Question 2 – Agriculture

The act of cultivating land and rearing animals for mass use is called:

A. Crop farming
B. Animal husbandry
C. Fishery
D. Agriculture

Answer: D. Agriculture
Agriculture includes crop farming, animal husbandry, and fishery. The other options are just subsets of agriculture.

Question 3 – Economic Systems

An economic system in which individuals control the productive resources is known as:

A. Socialist economy
B. Capitalist economy
C. Mixed economy
D. Traditional economy

Answer: B. Capitalist economy
In capitalism, individuals and private firms own and control resources. On the other hand, in socialism, resources are controlled by the state. A mixed economy combines both.

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Question 4 – Surplus Budget

When government revenue exceeds expenditure, the result is:

A. Deficit budget
B. Surplus budget
C. Balanced budget
D. Fiscal deficit

Answer: B. Surplus budget

Question 5 – Balanced Budget

Which of the following describes a balanced budget?

A. Revenue = Expenditure
B. Revenue > Expenditure
C. Revenue < Expenditure
D. Revenue + Expenditure

Answer: A. Revenue = Expenditure

Question 6 – Types of Agriculture

Which of these is not a branch of agriculture?

A. Forestry
B. Poultry
C. Banking
D. Crop farming

Answer: C. Banking

Question 7 – Socialist Economy

In a socialist economy, resources are controlled by:

A. The private sector
B. Government
C. Consumers
D. Producers only

Answer: B. Government

Question 8 – Mixed Economy

A mixed economy combines the features of:

A. Capitalism and Traditional economy
B. Capitalism and Socialism
C. Socialism and Communism
D. Feudalism and Capitalism

Answer: B. Capitalism and Socialism

Question 9 – Demand Curve

A movement along the demand curve is caused by a change in:

A. Consumer income
B. Population size
C. Price of the good
D. Tastes and preferences

C. Price of the good

A price change causes movement along the curve; the others shift the curve.

Question 10 – Public Goods

Which of the following is a public good?

A. Private hospital
B. National defence
C. Electricity from a prepaid meter
D. Chewing gum

B. National defence

Public goods are non-excludable and non-rivalrous—national defence fits; the others don’t.

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Conclusion

Economics questions in GCE often test definitions and applications of budget systems, agriculture, and economic structures. However, by practicing solved past questions like these, you can quickly understand patterns in the exam.

In summary, focus on key areas such as fiscal policy, types of budgets, and economic systems. Consistent practice will improve your confidence and performance in GCE Economics.

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