Cambridge IAS-Level · Analysis & Prediction

2026 Cambridge IAS-Level Economics (9708) Past Paper: Analysis & Answers

The May/June 2026 AS Level Economics examination (Papers 13 and 23) presents a balanced assessment across microeconomic foundations and macroeconomic policy evaluation. Paper 1 features rigorous conceptual questions spanning elasticity geometries, tax structures, and AD/AS capacity thresholds. Paper 2 provides an engaging, contemporary data response on global electric vehicle competition, followed by structured essay choices requiring well-developed chains of reasoning, precise diagrammatic application, and balanced evaluation.

Updated: 23 Sept 2026

Analysis Sample paper

Difficulty 3.4/5

Total marks

Duration

180 mins

Most tested

Microeconomic Government Intervention & Market Structures

Paper breakdown

Paper 1 (Multiple Choice): 30 marks · 60 minsPaper 2 (Data Response and Essays): 60 marks · 120 mins

Top chapters

Classification of goods and services · 15 marksAddressing income and wealth inequality · 15 marksPrice elasticity, income elasticity and cross elasticity of demand · 10 marks

Overall Verdict & Assessment Overview

The May/June 2026 series for Cambridge AS Level Economics (Papers 9708/13 and 9708/23) reflects standard Cambridge rigor with strong emphasis on real-world application and multi-step analytical reasoning. The multiple-choice paper tests granular syllabus knowledge, notably distinguishing between wealth and income stocks/flows, elasticity along specific supply vectors, and the mechanics of macroeconomic stabilization along different portions of the aggregate supply curve. Paper 2 pairs a timely case study on Chinese electric vehicle trade with classical essay pairings covering market failure, income inequality, macroeconomic shocks, and external balance adjustments.

Key Mark Allocations & Core Themes

Marks across both papers are evenly divided between microeconomic and macroeconomic domains:

Microeconomics & Market Failure: Heavy emphasis on elasticity (specifically $XED$ and supply elasticity characteristics), public vs. private goods classification, non-rejectability, and the distributive impacts of merit good expenditures.
International Trade & Protectionism: Prominent throughout Section A data response and Section C essay options, focusing on export subsidies, currency depreciation mechanics, terms of trade ratios ($\frac{\text{Export Price Index}}{\text{Import Price Index}} \times 100$), and current account imbalances.
Macroeconomic Policy & Aggregate Markets: Evaluating Keynesian vs. classical aggregate supply ranges, demand-pull inflationary bottlenecks, and supply-side capacity expansions vs demand management in tackling structural and cyclical unemployment.

Common Pitfalls & Areas of Weakness

Examiners routinely highlight areas where candidates forfeit easy marks:

Elasticity Application vs Theory: In Question 1(d), students often define $XED$ accurately but fail to link the sign and magnitude of cross elasticity to actionable corporate strategy, overlooking vital non-price factors like brand perception and infrastructure.
Diagram Precision: In Data Response 1(c) and Essay 4(a), missing directional arrows, improperly labelled equilibrium shifts (price vs real output / national income), or omitting the elastic vs inelastic range on $AS$ curves led to capped diagrammatic credit.
One-Sided Evaluative Essays: In 12-mark essay components (such as 2(b), 3(b), 4(b), and 5(b)), failing to analyze both positive and negative consequences across both specified economic agents (e.g., consumers AND firms in 5(b)) prevents candidates from reaching Level 2 in $AO3$ evaluation.

Strategic Advice for Candidates

To maximize marks, ensure you structure 8-mark questions with 3 distinct knowledge/analytical points and a justified concluding judgment. For 12-mark evaluation essays, always construct a two-sided argument using clear economic terminology before delivering an evaluative synthesis that weighs short-run versus long-run impacts, structural constraints, and the significance of elasticities.

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Charts

Marks by chapter

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Question type mix

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Multiple Choice30 marks · 30 questions
Data Response20 marks · 5 questions
Structured Essay40 marks · 4 questions

Mark accessibility

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78%within easy or medium reach

easy: 28 marksmedium: 42 markshard: 20 marks

Difficulty trend

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Command word frequency

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Skill weighting

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Study ROI

Higher bubbles carry more marks; bubbles further left are easier. Start with the topics that sit high and to the left.

Classification of goods (Public vs Merit Goods)

15 marks · Difficulty 2.6

Income & Wealth Inequality Policies

15 marks · Difficulty 3

Elasticities of Demand (PED, XED, YED)

10 marks · Difficulty 3.1

Aggregate Demand & Aggregate Supply Analysis

10 marks · Difficulty 3.3

Exchange Rates & Current Account Balances

8 marks · Difficulty 3.6

Time vs marks

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marksmins

Next-year prediction

Topics worth watching next year, and why. These are informed guesses from past papers, not a forecast.

Fiscal Policy vs Monetary Policy Effectiveness

With macroeconomic intervention cycling regularly between fiscal, monetary, and supply-side tools, comparative macroeconomic policy essays remain a top candidate for Paper 2 Section C.

Protectionism Methods (Tariffs, Quotas, Subsidies)

Global trade friction scenarios continue to be heavily featured across AS data response and essay sections, especially evaluating winners and losers among domestic and foreign stakeholders.

Production Possibility Curves (PPC) and Opportunity Cost

PPC essay questions have seen reduced representation in recent series compared to earlier high-mark appearances (21 marks in 2025-jun-v1). A dedicated Section B essay on shifts vs movements along PPC is highly probable.

Cumulative marks ladder

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Topic-year heatmap

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Methods and effects of government intervention in markets

Price elasticity, income elasticity and cross elasticity of demand

Price stability

Economic growth

Aggregate Demand and Aggregate Supply analysis

Classification of goods and services

Addressing income and wealth inequality

Unemployment

Fiscal policy

Protectionism

Examiner insights

Official report

Common pitfalls

Failing to explicitly reference both distinct economic stakeholders (e.g. evaluating effects on both consumers AND firms) when prompted in 12-mark evaluation questions.
Treating cross elasticity of demand (XED) purely as a theoretical definition without evaluating its practical limitations (such as data inaccuracy, rapid market changes, or strong non-price preferences).
Confusing shifts of supply/demand curves with movements along the curves when illustrating export subsidies or price changes.
Providing one-sided normative assertions rather than balanced analytical arguments supported by economic theory in part (b) essay questions.

Misconceptions

Believing that an increase in the Gini coefficient signifies greater equality, whereas an increase (e.g., 0.45 to 0.49) reflects widening income inequality.
Assuming all public goods are completely non-rejectable in practice, whereas pure public goods cannot be rejected while quasi-public goods may allow limited avoidance.
Assuming a current account deficit is exclusively harmful, overlooking that it may reflect strong consumer confidence or vital capital equipment imports that enhance long-run productive capacity.

Where marks are lost

Omitting the evaluation mark reserve by failing to provide a justified, reasoned final conclusion in 8-mark (AO3 reserved: 2 marks) and 12-mark (AO3 reserved: 4 marks) questions.
Incomplete diagrammatic labeling, such as omitting original/new equilibrium price and quantity markers ($P_1, P_2, Q_1, Q_2$) or axis labels on AD/AS diagrams.
Writing generic descriptions rather than developing multi-step analytical chains linking economic causes to specific final outcomes.

Estimated grade boundary

Updated: 23 Sept 2026

Source: Cambridge International grade thresholds (official)

Grade	Mark	Percentage
A	51/90	57%
B	43/90	48%
C	36/90	40%
D	30/90	33%
E	24/90	27%

Official grade boundaries published by Cambridge International grade thresholds (official).

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