Cambridge International AS & A Level: Economics 9708/43 October/November 2021
Cambridge International AS & A Level: Economics 9708/43 October/November 2021
Cambridge International AS & A Level: Economics 9708/43 October/November 2021
ECONOMICS 9708/43
Paper 4 Data Response and Essays October/November 2021
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 2021 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.
1(a) Use a marginal revenue product diagram to illustrate what will happen 3
to wages as a result of the changes mentioned by the critic of the free
movement of labour (in the second paragraph).
1(b) What do the high numbers of workers migrating from Eastern Europe 4
to other countries in the EU suggest about the state of their own
economies compared with the country to which they migrate?
Lower wages for the same skills; higher unemployment / fewer job
opportunities; weaker infrastructure and welfare systems; lower living
standards.
1(c) Explain whether the introduction of a minimum wage will always result 5
in a different outcome for employment from that which would occur in
a free market.
1(d) With the help of information in the article assess whether the 8
increasing numbers of migrant workers are an advantage or a
disadvantage to the receiving country.
Positive effects
• skills of migrant workers can complement those domestic workers and
increase productivity and therefore increase economic growth
• earnings of migrant workers can create jobs – multiplier effect –
increase in AD
• without migrant workers the level of AS could not meet AD causing
inflation
• migrants fill jobs where there are labour shortages
• research shows migrant workers make a positive contribution to the
taxes which is higher than payments for welfare and public services
spent on migrants.
Negative effects
• EU workers have taken to jobs of domestic workers increasing
unemployment
• Increased competition for jobs drives down wages with a loss of
government tax revenues
• EU workers willing to accept lower wages, causing industrial unrest.
L4 (18–25 marks): for an analysis of the first part of the question and a
critical discussion of at least three methods of control and their effectiveness
and application. (Taxes and the opposite subsidies should count as one
alternative).
L1 (1–9 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
3(a) Explain the theory of how a consumer decides to achieve the situation 12
described as ‘equilibrium’ when purchasing two different products.
L3 (7–8 marks): for a less developed answer but which still refers to the
equilibrium but probably concentrates on only one good with MU or is
unclear about the relevance of the tangency with indifference curves.
L2 (5–6 marks): for a brief attempt which does not clearly bring out the
significance of the marginal analysis.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
3(b) Two shops sell clothes. One has luxury fashionable designs. The other 13
has cheaper inferior alternatives. Both shops decided to have
promotional sales with price reductions.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
4(a) Explain the difference between, and the purpose of, integration 12
between firms and a cartel.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
4(b) ‘In large firms the long-run average cost falls as output increases and 13
consumers benefit from lower prices. In small firms it does not. There
is, therefore, no place in a modern economy for small firms.’
L4 (9–13 marks): for clear analysis and discussion of all parts of the
question including the purpose and reasons for small firms and a
conclusion.
L3 (7–8 marks): for an answer that concentrates on two of the parts of the
statement but still with a reasoned structure, or comments on all three parts
but with little analysis.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
5(b) Keynes argued that the rate of interest will not ensure that the level of 13
savings will equal the level of investment in an economy because
savings and investment are undertaken by different individuals for
different reasons.
Explain this statement and discuss how far you would support this
view.
L4 (9–13 marks): for responses that makes an attempt to assess how far
they would support this Keynesian position. This would require a discussion
relating to the importance of income changes on the level of savings and
investor expectations of future profits on the level of investment. A
conclusion which comments upon how far the candidate agrees with
statement should be provided.
L3 (7–8 marks): for a response that analyse why interest rate changes will
impact upon savings and investment and why this will ensure a return to
equilibrium via market forces. Some attempt should be made to explain why
Keynes argued that other factors were more important determinants of
savings/investment.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
6(a) Explain how governments measure economic growth and discuss why 12
this measurement is important.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
6(b) ‘Economic growth will always decrease the level of unemployment but 13
this will usually create significant problems in relation to attaining
other key macroeconomic aims.’
Answers should address both parts of the question. How far economic
growth will decrease unemployment should be discussed by linking growth
to output, income and employment. Candidates might also question whether
economic growth will always reduce unemployment. For example, new
technology might lead to increase in output via increases in productivity, at
the expense of jobs. The second part of the question requires candidates to
discuss possible conflicts between attaining economic growth, controlling
inflation and reducing balance of payments deficits.
L4 (9–13 marks): for an answer that discusses the possibility that in certain
circumstances, economic growth might not decrease the level of
unemployment and provides supporting examples. At least two potential
problems relating to the attainment of other macroeconomic goals should be
discussed.
L2 (5–6 marks): for an answer that describes why economic growth might
create jobs and makes some attempt to explain why other macroeconomic
goals might be affected.
L1 (1–4 marks): for an answer that has some basic correct facts but
includes irrelevancies and errors of theory.
L3 (14–17 marks): for an answer that analyses the potential impact of each
of the requirements referred to in the statement and combines this with an
analysis of the potential benefits of the IMF loan.
L1 (1–12 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.