Cambridge International AS & A Level: Economics 9708/43 October/November 2022
Cambridge International AS & A Level: Economics 9708/43 October/November 2022
Cambridge International AS & A Level: Economics 9708/43 October/November 2022
ECONOMICS 9708/43
Paper 4 Data Response and Essays October/November 2022
MARK SCHEME
Maximum Mark: 70
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the October/November 2022 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.
These general marking principles must be applied by all examiners when marking candidate answers.
They should be applied alongside the specific content of the mark scheme or generic level descriptors
for a question. Each question paper and mark scheme will also comply with these marking principles.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question
(however; the use of the full mark range may be limited according to the quality of the candidate
responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should
not be awarded with grade thresholds or grade descriptors in mind.
a DO credit answers which are worded differently from the mark scheme if they clearly
convey the same meaning (unless the mark scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they
are correct
c DO credit answers where candidates give more than one correct answer in one
prompt/numbered/scaffolded space where extended writing is required rather than list-type
answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required.
(Check for evidence it is understood and not used wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all
possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already
credited unless the language itself is being tested. This applies equally to ‘mirror
statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of
syllabus terms must allow for clear and unambiguous separation from other syllabus terms
with which they may be confused (e.g. Corrasion/Corrosion)
3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for
each step, the correct answer(s) and the mark for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the
question paper and in the mark scheme. In all other instances, the correct answer to a
calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme,
award equivalent marks for reaching equivalent stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working,
the ‘own figure rule’ applies: full marks will be given if a correct and complete method is
used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.
4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used
to indicate wrong answers. There is no direct relationship between ticks and marks. Ticks
have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the
meaning will be understood by all examiners who marked that paper.
MARKING SPECIFICS
1. How to deal with crossed out work and multiple answers:
• Where a candidate crosses out an answer and provides an alternative response to that same
question, then mark the work which is not crossed out.
• Where a candidate crosses out an answer and does not make another attempt, you should
attempt to mark the crossed out work and award marks appropriately. This must also be
done even in circumstances where the candidate has gone on to answer an alternative
optional question in Section B.
• For the avoidance of doubt, all of a candidate’s answers, crossed out or not, optional or not,
must be marked. The only work which is not to be marked is something that has been
crossed out and replaced by more work for that same question.
2. There is ‘no response’ (NR) award, as well as a zero marks award. Only award NR if there is
nothing at all written in answer to that question (which is often but not always the case for
optional questions), OR if there is a comment which does not relate in any way to the question
(e.g. ‘can’t do’ or ‘don’t know’ etc), OR if there is a mark such as a dash or question mark which
isn’t an attempt at the question. You can use the [ # ] or [ / ] key as a shortcut for NR. However, if
there is any attempt at the question which does not score, including copying the question onto the
Answer Booklet, then a mark of 0 must be awarded whether this work is crossed out or not.
3. Always check every page in every response, including additional objects. Every page requires
some form of annotation to show you have seen it.
4. Sometimes a candidate mislabels their answers. They may, for example, have written ‘3(a)’ in the
margin, but the answer given is clearly to question 4(a). In this case, use the mark scheme for
4(a) and award the mark against the mark box for 4(a). Then add a text box comment to the
response and put something like: ‘this is 4a’.
ANNOTATIONS
Any script you mark may be seen or reviewed by your Team Leader, another Team Leader, the
Principal Examiner, Cambridge International staff or the candidate’s Centre. Annotation will make it
clear how you arrived at the mark that you have awarded. The following annotations are used in
marking this paper and should be used by examiners wherever appropriate.
BOD Benefit of the doubt given. The point has not been made quite correctly, completely
or precisely, but is nearly there and the intention is clear.
^ Omission mark. A term, a label, a line on a graph, an example, etc, required to make
the point correctly has been missed out of the response.
SEEN This work has been noted by the examiner, but there is nothing of any credit here.
[T] (text A catch-all, when you need to give more detail or explanation, such as a breakdown
box) of marks, or a comment. Please note that teachers who request a script can read
your comments.
ASSESSMENT OBJECTIVES
The skills listed below are what we expect candidates to be able to do. The marks in the mark
scheme reward candidates who demonstrate these skills, so they are helpful to keep in mind if you
have any doubts as to whether or not something is worthy of credit.
AO1 Knowledge and Demonstrate knowledge and understanding.
understanding
The essay questions in Section B are marked using Levels of Response. They carry a maximum
mark of 25 each. Most of them are split into two parts, where part (a) is worth 12 marks and part (b) is
worth 13 marks. However, some essays are set as a single question worth 25 marks.
Try not to 'bunch' marks, but use the whole mark range. Do not reserve (e.g.) high Level 4 marks ‘just
in case’ something turns up of a quality you have not yet seen. If an answer gives clear evidence of
the qualities described in the band descriptors, then it must be rewarded appropriately. If there is any
doubt in your mind, give the benefit of doubt to the candidate.
The difference in grades should be assessed on the ability of the candidate to demonstrate the skills
described in the assessment objectives and not purely on the ability to itemise further facts from the
content of the syllabus. All of the essays test the four assessment objectives above.
There are two steps that need to be taken in awarding the mark for the essay questions:
Step 1: Determine the level – start at the highest level and work down until you reach the level that
best describes the answer. Use a ‘best-fit’ approach: which level does it most closely resemble
overall, considering all of the assessment objectives on balance?
Step 2: Determine the mark within the level by considering the following:
• Consistently meets the criteria; clear evidence of the qualities of the level = at the top of the
level
• Meets the level’s criteria but with some slight inconsistency or some parts of the criteria not
addressed = at the middle or above the middle of the level (depending on number of marks
available)
• Just enough achievement for this level on balance = either below the middle or at the middle
of the level (depending on number of marks available)
• Answer is on the borderline of this level and the one below, i.e. it there is only limited
evidence it meets the criteria for this level = at the bottom of level
L2 identifies some illustration may not some analysis present some evidence of an
relevant facts be fully relevant and but limited by ability to evaluate,
and/or theory is superficial or omissions, error(s), discriminate, or to
overgeneralised irrelevant details or make basic
the answer unclear communication judgements,
overall has a an accurate considering some
general relevance application of some conclusions may not be relevant information
to the question, related theory or drawn from it
showing some fact(s), with little or
understanding no development a disorganised answer
1(a) Identify the trends in demand for different uses of palm oil as shown in 3
Fig. 1.1.
Heating and electricity use rises then stabilises after 2011 (1)
Uses in foodstuffs and animal feed falls over the period (1)
1(b) Analyse why developing countries that produce palm oil view it as a 4
means of poverty reduction.
High world demand for palm oil means that it has become an income
generator and an earner of forex (1) – rural areas benefit from higher
incomes (1) and rising living standards (1)which removes many people from
poverty.
(4 Max)
Multinationals may reduce direct investments if their profits are affected [1]
(5 Max)
1(d) To what extent do you agree with the advice of the International 8
Monetary Fund (IMF) to encourage Indonesia to expand its production
of palm oil?
The disadvantage was the devastation of rain forests to increase land area
for oil palms. Fires increase greenhouse gas emissions (global warming)
and destroy habitats. External costs will exceed private costs of plantation
owners. Danger of monoculture – prices influenced by foreign buyers –
could result in job losses eventually if foreign trade is reduced.
(4 max)
In many cases the provision of public goods will take a long time, therefore
an attempt has to be made to decide the present value/cost of a project that
will not be completed for many years. Thus although it is important to use
cost benefit analysis, it is also extremely important to recognise the
difficulties involved when putting this analysis into practice.
L1 (1-4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
2(b) L3 (7–8 marks): For a competent comment which clearly defines productive
and allocative efficiency. Pareto optimality might be explained and partially
linked to different types of efficiency. Equity would be briefly described but
not clearly discussed in relation to Pareto optimality and no conclusion will
be provided.
L1 (1–4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
Explain what this means and consider its importance in relation to the
pricing policy of an oligopoly firm.
Alternatively, the dominant firm within the group might become the price
leader and set the market price which other large firms choose to follow.
Game theory and the theory of the kinked demand curve can be used to
assess which strategy might be the most effective. Most of these alternative
pricing strategies will lead to price rigidity. It should be noted that many
Oligopoly firms will adopt non price competition such as advertising or
increasing product differentiation to avoid the negative impact of price
competition.
L2 (5–6 marks): For a briefer descriptive comment that explains the terms in
the question and provides some evidence of the main characteristics of an
Oligopoly. Reference to pricing policies might be made but not clearly linked to
the nature of the market structure.
L1 (1–4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
Monopoly firms will control the entire market or in some legal definitions,
control at least 25% of the market. Barriers to entry will be used to prevent new
firms entering the market and any subsequent loss of market share. It is also
assumed that Monopoly firms will attempt to maximise profits and this will be
achieved by letting the level of output be determined by the point where
marginal costs (MC) = marginal revenue (MR). In some circumstances, when
the market price falls to a relatively low level, it becomes possible for a new
firm to enter the market and profit by charging a price which covers its costs.
To prevent this, Monopoly firms might choose to lower their profit maximising
but still cover costs and still maintain a satisfactory level of profits.
Alternatively, the monopoly might invest the additional profits in research and
development and achieve dynamic efficiency which will enable costs to be
further reduced and low prices maintained.
L1 (1–4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
4(a) Discuss the effectiveness of government policies which increase the net 12
advantage of labour on the long term supply of labour in an economy.
Government policies which increase the net advantage of labour will increase
the supply of labour in the long run and this can be shown by a shift
downwards to the right of the supply curve of labour. This means more
workers will be supplied at every wage rate. The net advantage of labour can
be divided into pecuniary and non-pecuniary elements. The former might
include: wages, salary and bonus payments. Non-pecuniary advantages might
include: hours of work, job security, promotion prospects and nature of the
work. Reductions in income tax, increasing the minimum wage and the
provision of skill training could be used to increase the pecuniary element of
the net advantage.
However tax reductions might lead to a fall in supply because some workers
will substitute work for leisure. The provision of skill training is expensive
therefore has a high opportunity cost. Minimum wage might increase the
supply of labour but firm’s might lower their demand for labour and therefore
create excess supply. Alternatively, a government can introduce new
regulations to ensure worker’s rights such as flexible working hours, working
conditions, safety at work etc. Although this extra support will benefit workers
new regulations are often costly to implement. In some cases it is the firm
which is expected to finance improvement in working conditions and this might
lead to a fall in profitability and ultimately a fall in demand for labour.
L2 (5–6 marks): For an attempt that describes net advantage of labour but
only examines one policy in relation to one element of the net advantage.
Analysis of this policy will not be fully developed.
L1 (1–4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
Answers should clearly identify and explain the key assumptions which
explain the difference between these two labour markets. A monopsony
market will consist of a single employer of labour; as a result the supply of
labour to the firm will be upward sloping to the right. A profit maximising
monopsonist employer will employ labour up to the point where the marginal
cost of employing labour is equal to the marginal productivity of labour. A
firm operating in a perfectly competitive labour market will pay a wage
determined by the market as a whole. The firm will be a wage taker and the
supply of labour to each firm will be perfectly elastic at the given wage.
L2 (5–6 marks): For a brief and less clearly established link between labour
productivity, MRP and the demand for labour. Some knowledge of the
differences between the two types of labour market but only a very limited
attempt to analyse the impact on one of the markets.
L1 (1–4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
5(a) Consider with the help of a circular flow diagram, why an export led 12
growth policy is likely to be successful when a developed economy is
in a recession.
L3 (9–13 marks): For a limited analysis of the impact of export led growth on
a developed economy, using a circular flow diagram. An explanation of a
recession will be provided. No evaluative comment will be provided to assess
the effectiveness of an export led growth policy.
L1 (1–4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
5(b) The introduction of new technology will increase efficiency but will 13
also cause an increase in unemployment.
L4 (9–13 marks): For accurate but only partially developed analysis which
explains what is meant by productivity and recognises that it will cause
structural unemployment. The focus will be on the short run outcome. No
discussion regarding long run outcomes and no conclusion will be provided
L1 (1–4 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
A dependency ratio indicates the extent to which the working population has to
produce not only enough goods and services to sustain itself but also for the
rest of the population who do not work and depend upon those who do.
Dependency ratios might be high for different reasons. Some economies have
a disproportionately large number of young people under the age of 15 who
are economically dependent. Some economies have high dependency ratios
due to a disproportionately large number of people who are too old to work.
Developing economies have high dependency ratios primarily due to very high
birth rates. This will have a negative impact on living standards due to the
insufficient wealth creation to enable everyone in the population to have
access to food, shelter, education, health care etc. A smaller working
population will also pay insufficient tax to allow governments to invest in
necessary public and merit goods.
However, there are many additional factors which also contribute to low living
standards in developing economies, for example, reliance on primary
products, low levels of capital investment, insufficient access to training and
education, limited natural resources. Also it should be recognised that it is
extremely difficult to measure living standards. GDP per capita is commonly
used but this omits many important factors which might impact on living
standards. Based on the above, it is difficult to accept with any degree of
certainty that high dependency ratios are the main reason why the standard of
living is low in developing economies.
L1 (1–9 marks): For an answer that has some basic correct facts but includes
irrelevancies and errors of theory.
Also, a freely floating currency which is allowed to depreciate will have some
potential inflationary effects in the long run. For example, a depreciating
currency will lead to a higher cost of imports and possible cost push
inflation. In addition, a switch from fixed to floating exchange rates will mean
that the central bank exchange rate policy will no longer have complete
control over the money supply. This might be inflationary in the long run.
The extent to which inflation might rise in the long run will also be
determined by other factors, for example global expansion, rising commodity
prices etc.
L1 (1–9 marks): For an answer that shows some knowledge but does not
indicate that the question has been fully grasped or where the answer is
mostly irrelevant.