Cambridge International AS & A Level: Economics 9708/42 October/November 2022
Cambridge International AS & A Level: Economics 9708/42 October/November 2022
Cambridge International AS & A Level: Economics 9708/42 October/November 2022
ECONOMICS 9708/42
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.
• Point marking is often used to reward knowledge, understanding and application of skills. We
give credit where the candidate’s answer shows relevant knowledge, understanding and
application of skills in answering the question. We do not give credit where the answer shows
confusion.
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)
• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the
marking but is not required to earn the mark (except Accounting syllabuses where they indicate
negative numbers).
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
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.
Annotation Use or meaning
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.
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
Please also see the mark scheme for each part of each essay, detailing the ranges of marks to be
awarded for each Level, and some illustrative content.
L2 identifies some illustration may not some analysis present some evidence of an
relevant facts be fully relevant and but limited by omissions, ability to evaluate,
and/or theory is superficial or error(s), irrelevant discriminate, or to
the answer overall overgeneralised details or unclear make basic
has a general an accurate communication judgements,
relevance to the application of some conclusions may not be considering some
question, showing related theory or drawn from i relevant information
some fact(s), with little or a disorganised answer
understanding no development
1(a) Explain how the discovery and extraction of oil affects the productive 2
capacity of Guyana.
1(d) Discuss with reference to the article, how the establishment of the new 8
fund may benefit the population of Guyana.
Conclusion (1)
3(a) Explain the law of diminishing returns and its relevance to the shapes 12
of the marginal cost curve and the average variable cost curve of a
firm.
L4 (9–12 marks) For an answer which refers to the short run, explains and
analyses the implications of the LDR for the shape of the average and
marginal output curves and the marginal cost curve and average variable cost
curve.
L3 (7–8 marks) For an answer which refers to the short run, explains the LDR
and attempts to analyse the shape of the average and marginal output curves
or the marginal cost curve and average variable cost curve.
L2 (5–6 marks) For an answer which explains LDR and average and marginal
costs.
L1 (1–4 marks) For an answer which has some basic correct facts but
includes irrelevancies. Errors of theory or omissions of analysis will be
substantial.
3(b) Discuss the extent to which a firm’s ability to operate a policy of price 13
discrimination is determined by the market structure in which that firm
operates.
L4 (18–25 marks) For an answer which analyses the theory of wages using
MRP theory. Comments are made regarding the elasticity of demand and
supply of labour. Imperfections in the labour market are identified and linked
to wage levels. The assumptions of the theory of wages are questioned. A
conclusion is reached for 22–25 marks.
L3 (14–17 marks) For an answer which analyses the theory of wages using
MRP theory. Comments are made regarding the elasticity of demand and
supply of labour or imperfections in the labour market are identified and
linked to wage levels.
L2 (10–13 marks) For a limited explanation which uses supply and demand
analysis to determine wages and refers to differing wage levels.
L1 (1–9 marks) For an answer which has some basic correct facts but
includes irrelevancies. Errors of theory or omissions of analysis will be
substantial.
L4 (9–12 marks) For an answer which explains the three demands for money
and analyses their relationship with the money supply, rate of interest and the
liquidity trap.
L3 (7–8 marks) For an answer which explains the three demand for money
with limited reference to the low interest rates.
L2 (5–6 marks) For an answer which explains the transaction and
precautionary demand for money, there may be limited reference to the
speculative demand.
L1 (1 – marks) For an answer which has some basic correct facts but includes
irrelevancies. Errors of theory or omissions of analysis will be substantial.
6(a) Explain how changes in the internal value of a country’s currency can 12
affect the external value of that currency.
Definitions of the two terms internal and external value of a currency: inflation
and the exchange rate. The link between changes in the internal value of the
currency and the exchange rate and the exchange rate and the rate of
inflation. Comment on the effect of a fixed/floating exchange rate.
L4 (9–12 marks) For an answer which defines the internal and external values
of a currency: inflation and the exchange rate. It explains the two terms internal
and external value of a currency and analyses the relationship between a
change in one and the effect on the other.
L3 (7–8 marks) For an answer which defines the two terms internal and
external value of a currency, and which explains the relationship between a
change in one and the effect on the other.
L2 (5–6 marks) For an answer which defines and explains the two terms.
L1 (1–4) For an answer which has some basic correct facts but includes
irrelevancies. Errors of theory or omissions of analysis will be substantial.
6(b) Discuss whether a government can achieve all its key macroeconomic 13
aims simultaneously.
L4 (18–25 marks) For an answer which defines MNC and SoL and
discusses the impact of a MNC on the SoL of the home and host countries.
A conclusion is reached for 22–25 marks.
L3 (14–17 marks) For an answer which defines MNC and SoL and
discusses the impact of a MNC on the SoL of either the home or host
countries.
L2 (10–13 marks) For a limited explanation of MNC and its impact on the SoL
of a country.
L1 (1–9 marks) For an answer which has some basic correct facts but
includes irrelevancies. Errors of theory or omissions of analysis will be
substantial.