What this practice covers
These questions are drawn from past Cambridge IGCSE papers and filtered to households. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on households, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Saying poorer households "spend more" than rich ones. They spend a larger proportion, not a larger amount.
- Forgetting that income is the main influence on all three of spending, saving and borrowing.
- Saying higher interest rates always cut spending, without mentioning confidence.
- Confusing saving with investment. Saving is not spending; investment is firms buying capital.
- Ignoring that some borrowing by low-income households is for necessities, not luxuries.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Households revision notes.