Cambridge IGCSE™: Economics 0455/23

Cambridge IGCSE™
ECONOMICS 0455/23
Paper 2 Structured Questions May/June 2023
MARK SCHEME
Maximum Mark: 90
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 May/June 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level and Cambridge Pre−U components, and some
Cambridge O Level components.
This document consists of 25 printed pages.
© UCLES 2023 [Turn over

0455/23 Cambridge IGCSE – Mark Scheme May/June 2023
PUBLISHED
Generic Marking Principles
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.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
 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 must be awarded positively:
 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.
© UCLES 2023 Page 2 of 25

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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.
Social Science−Specific Marking Principles

(for point−based marking)
1 Components using point−based marking:

 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.
From this it follows that we:
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)

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2 Presentation of mark scheme:
 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.

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Common examiner annotations on 0455/2281/0987 and 2286
Uncertain what the candidate means – an illogical line of

MAX
thought
Benefit of the doubt Not answered question
Blank page Not established – a statement made without any support
Caret – a word is missing. Repetition
Confused SEEN
Cross Tick – a credit worthy point
Highlight Too vague
L Nothing creditworthy
Level 1
Level 2
Level 3

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Question Answer Mark Guidance
1(a) Calculate New Zealand’s GDP per head in 2020. 1 Accept the correct figure without the $ sign.
$39 000 (1)
1(b) Identify two external costs arising from the milk and car 2 If more than two costs given, consider the first three.
industries.
Air pollution (1).

Damages the environment (where wild animals live) (1).
1(c) Explain the impact on a cow farmer’s profits if they are 2

unable to find a different source of revenue.
Profit is revenue minus costs (1)

Profits will fall (1) due to reduction in quantity sold /
decrease in supply (1).
Less revenue (1) less income for farmers (1) farmers may
become unemployed (1).
1(d) Explain the two plans that the New Zealand government 4 One mark each for each of two plans identified and one
has to reduce external costs to the environment. mark each for each of two explanations.
Logical explanation which might include: Accept milk production for keeping cows.
End imports of petrol-powered cars by 2032 (1) decreasing
the number of petrol−powered cars in New Zealand / reduce
use of fossil fuels / by imposing an embargo/increasing the
price of petrol-power cars / increasing usage of greener /
electric cars (1).
Limit the number of cows that each farmer can have (1)
decreasing the amount of air pollution emitted by cows / less
habitat damaged by cows / government fines to those who
have more cows than permitted/ imposing regulations (1).

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1(e) Draw a demand and supply diagram, to show the effect 4

of a cheaper substitute on the market for petrol-
powered cars.
Demand and supply diagram:

Axes correctly labelled – price and quantity or P and Q (1).
Original demand and supply curves correctly labelled (1).
New demand curve shifted to the left (1).
Equilibriums – shown by lines P1 and Q1 and P2 and Q2 or
equilibrium points marked as E1 and E2 (1).

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1(f) Analyse the relationship between a country’s share of 5 Responses do not have to be in the format suggested but
world GDP (%) and its share of world carbon dioxide they should address the expected/normal relationship, offer
emissions (%). supporting evidence of that, highlight any exceptions to that,
and analyse the overall data.
Coherent analysis which might include:
Expected relationship:
Positive relationship (1) – the lower / higher total GDP as a
% of world GDP, the lower / higher the carbon dioxide
emission as a % of world GDP (1).
Supporting evidence:
up to 2 marks for relevant evidence e.g.
 New Zealand has the lowest total GDP as a % of world
GDP and lowest level of carbon dioxide emission as a
% of world carbon dioxide emissions
 Thailand has the second lowest total GDP as a % of
world GDP and second lowest level of carbon emissions
as % of world carbon dioxide emissions
China and USA have the two highest total GDP as a % of
world GDP and highest level of carbon emissions as a
% of world carbon dioxide emissions.
Analysis of expected relationship:

As countries produce more goods and services which
increases their GDP (1), their carbon emissions also
increase as more factories / energy / transport needed for
production (1).
Exception:
China/United States (1) China has 2nd highest GDP as a %
of world GDP after the US but China has the highest carbon
dioxide emission as a % of world GDP (1).
Analysis of exception:
e.g. China has a larger secondary sector / higher
percentage of heavy industries / larger population (1).
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1(g) Discuss whether or not an increase in exports of clean 6 Apply this example to all questions with the command
and green products will help the New Zealand word DISCUSS
government achieve its macroeconomic aims. (1g, 1h, 2d, 3d, 4d and 5d)
Award up to 4 marks for logical reasons why it might, which Each point may be credited only once, on either side of an
may include: argument, but separate development as to how/why the
 Increase economic growth / GDP (1) as increased outcome may differ is rewarded.
exports lead to increased total demand (1) clean and
green products may have higher demand (1) and higher Generic example mark
prices (1)
 Reduce its current account of the balance of payment Tax revenue may decrease … 1
deficit (1) as value of exports will increase (1) increasing
net exports (1) more inflow into the current account / ... because of reason e.g. incomes may be lower. 1
increase in trade in goods inflow (1)
 Decrease unemployment (1) as more goods produced Tax revenue may increase because incomes may 0
(1) requires more workers (1) reduce poverty (1) be higher i.e. reverse of a previous argument.
 Improved HDI (1).
Tax revenue may increase because of a different 1
Award up to 4 marks for logical reasons why it might not, reason i.e. not the reverse of a previous argument
which may include: e.g. government spending on subsidies may
 Not all firms benefit (1) as some firms which are less stimulate the economy more than spending on
clean / green will lose revenues / profits (1) cut costs (1) education.
hire less workers (1) increase unemployment (1)
 Increased total demand (1) will lead to inflation (1) firms
increase the price of their products since demand is
higher (1) lower purchasing power of consumers / lower
real income (1).

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1(h) Discuss whether or not job losses caused by a change 6

to a carbon−neutral economy will be harmful.
Award up to 4 marks for logical reasons why there might be

negative economic consequences, which may include:
 increased poverty (1) as fewer jobs means less income
(1) can’t afford basic necessities (1) such as shelter /
clothes / food (1) possibility of increased crime (1)
 huge losses in the other firms that serve these
communities (1) less spending in local shops (1) less
revenue / profit (1) may have to shut down (1)
 lost output (1) economy not producing at its full capacity
(1) unused resources (1) actual output lower than
maximum output (1) inefficient allocation of resources
due to the existence of labour who wants to work but
can’t find work (1)
 lost skills / lost motivation (1) occupational immobility
/can't find new jobs (1) cost of retraining workers (1)
 double effect on government finances (1) unemployed
don’t pay taxes (1) but get benefits (1) reduce
government revenue (1)
 may decrease government expenditure on other areas
(1)
 Unequal burden (1) structural unemployment (1)
increases inequality (1) youth and older individuals
more likely to be unemployed (1).
Award up to 4 marks for logical reasons why negative

economic consequences above may not occur:
 temporary (1) frictional unemployment (1) as other jobs
in carbon−neutral economy are available (1)

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1(h)  an economy with a high mobility of factors of production

could avoid such problems (1) workers can move to
other industries (1) develop skills for jobs in the
carbon−neutral economy (1) if education / training is
provided (1).
 new jobs may be higher paid (1) boosting total demand
(1)
 better air quality leads to better health (1) improving
productivity (1)
 government spends less on health care (1) allowing
more to be spent elsewhere e.g. on education and
training (1).

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2(a) Identify two types of cost to a firm. 2 Accept any relevant costs e.g. labour cost
Accept abbreviations e.g. TC
total cost (1) average total cost (1) fixed cost (1) variable If more than two costs given, consider the first three.
cost (1) average fixed cost (1) average variable cost (1)
2(b) Explain two roles of commercial banks for firms. 4 One mark each for each of two roles identified and one mark
each for each of two explanations.
Logical explanation which might include:
Provide loans / overdrafts to banks / source of finance (1) to If more than two roles given, consider the first three.
fund investments / expansion / start−up / day to day
operations (1).
Help process payments (1) internet banking / fund transfers /
credit card / debit card payments (1).
Issuing bank drafts / bank cheques (1) to help firms make
payments (1).
Safe place to store money / savings (1) firms making
deposits / earn interest (1).
Safekeeping of documents and other items (1) in safe
deposit boxes (1).
Currency exchange (1) to facilitate transfers between firms /
international transactions (1).
Provides insurance (1) to reduce various risks to the firm (1).

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2(c) Analyse the causes of differences in the level of income 6 Alternatively, accept arguments which describes reasons for
between countries. lower incomes.

 difference in productivity (1) countries with higher
productivity have higher incomes (1) as workers can
produce more (1) and earn more money from their
production (1)
 difference in availability of natural resources (1) e.g.
valuable commodities such as oil or gold (1).
 difference in population growth (1) countries with higher
population growth have higher incomes (1) as there are
more people to produce goods and services (1) lower
labour costs (1) encourage more investments (1)
 differences in distribution of primary, secondary and
tertiary sectors / level of development (1) those with
higher secondary and tertiary sectors have higher
incomes (1) more value added (1) less dependent on
weather (1) higher productivity (1)
 difference in specialisation / diversification (1) level of
exports (1).
 difference in minimum wage level (1) affects the level of
total demand in a country (1)
 difference in level of saving and investment (1) higher
savings leads to higher investment (1) and higher
productivity growth (1) and therefore higher income
growth (1)
 difference in education levels (1) higher education levels
lead to higher incomes (1) workers have more
qualification / skills / experience (1) leading to higher
productivity / higher output (1)

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2(c)  difference in health / healthcare standards (1) higher

health / healthcare standards lead to higher incomes (1)
less sick / healthier / stronger (1) produce more / higher
productivity leading to higher income (1).
 difference in unemployment rates (1) the more
unemployed resources a country has, the less income is
likely to be earned (1).
 differences in birth rates / proportion of elderly people
(1) high birth rate and ageing population may place high
demands on a country's resources (1)
 difference in frequency of war / natural disasters (1)
reducing a country’s ability to produce goods and
services (1)

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2(d) Discuss whether or not low tax rates benefit an 8

Level Description Marks
economy.
3 A reasoned discussion which accurately 6−8
In assessing each answer, use the table opposite. examines both sides of the economic
argument, making use of economic
Why it might: information and clear and logical analysis
 low corporation tax rates encourage more investments to evaluate economic issues and
and therefore higher productivity growth which situations. One side of the argument may
encourages economic growth have more depth than the other, but overall
 low corporation tax rates encourage more investments both sides of the argument are considered
which increases demand for labour and reduces and developed. There is thoughtful
unemployment evaluation of economic concepts,
 low income tax rates encourage more people to enter terminology, information and/or data
the labour force appropriate to the question. The discussion
may also point out the possible
 low income tax rates increase disposable income which
uncertainties of alternative decisions and
can encourage higher consumer expenditure and, as a
outcomes.
result, higher output
 low indirect tax rates reduce cost of production which 2 A reasoned discussion which makes use of 3−5
reduces cost−push inflation economic information and clear analysis to
 low indirect tax rates reduce cost of production which evaluate economic issues and situations.
increases competitiveness of exports which reduces The answer may lack some depth and
current account deficit / increases current account development may be one−sided. There is
surplus relevant use of economic concepts,
terminology, information and data
Why it might not: appropriate to the question.
 low tax rates reduce government revenues which could
reduce spending on public goods / infrastructure, 1 There is a simple attempt at using 1−2
reducing investments / productivity growth economic definitions and terminology.
Some reference may be made to economic
 low tax rates increase production which increases
theory, with occasional understanding.
pollution and environmental degradation
 low direct tax rates may be inflationary 0 A mark of zero should be awarded for no 0
creditable content.

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2(d)  low tax rates increase trade which increases need for
international transport such as ships and planes which
increases pollution
 low direct tax rates increase inequality
 low tax rates on demerit goods may worsen health /
result in market failure.
 low tax rates on imports (tariffs) may worsen the current
account of the balance of payments
Question Answer Marks Guidance
3(a) Identify two challenges facing small firms. 2 If more than two challenges given, consider the first three.
Two from: Accept any reasonable challenges facing small firms.

Raising finance (1)
May not be able to employ specialist staff (1)
Less well known (1)
Managing cash flow (1)
Survival / may have high level of competition (1)
Not able to take advantage of economies of scale / high
average cost (1)

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3(b) Explain two possible opportunity costs for firms if they 4 One mark each for each of two opportunity costs identified
invest in the latest technology. and one mark each for each of two explanations.
Logical explanation which might include: If more than two opportunity costs given, consider the first
They may not be able to pay as much in wages (1) forgoing three.
having extra workers to help in their business / more skilled
workers (1)
They may not be able to get good quality raw materials (1)
sacrificing the quality of their product (1)
They may not be able to operate in a good location (1) more
difficult for customers to reach the firm (1)
They may not be able to buy land (1) for expansion (1)
They may not be able to spend on advertising / marketing /
spending on the brand (1) forgoing the opportunity to
increase demand (1)
Retained profits (1) could have been distributed to the
owners (1)

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3(c) Analyse two causes of a fall in demand for a product 6 If more than two causes given, consider the first three.
such as Chinese food.

Decrease in price of substitutes / better quality substitutes
(1) increasing demand for substitutes (1) such as Indian
food or other kinds of food (1) there may be an increase in
the advertising of substitutes / better known rivals may enter
the market (1).
Increase in the price of complements (1) e.g. delivery
charges (1)
Decrease in income (1) decreasing demand for Chinese
food as people eat out less (1) as eating out is seen as
luxury goods (1).
Change in tastes / trends moving away from Chinese food
(1) increasing demand for other types of food (1)
Decrease in quality of Chinese food (1) lack of investments
(1) may be a health report about the advantages of eating
another type of food (1).
Lack of advertising (1) due to little investments in marketing
(1) less popular / less awareness of product (1).

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3(d) Discuss whether or not competition is harmful to a firm. 8

In assessing each answer, use the table opposite. 3 A reasoned discussion which accurately 6−8
examines both sides of the economic
Why it might be: argument, making use of economic
 reduction in market share information and clear and logical analysis
 less revenues / less profits to evaluate economic issues and
 less growth situations. One side of the argument may
 less reinvested profits – less innovation have more depth than the other, but overall
 may need to lower prices / spend more in order to both sides of the argument are considered
compete and developed. There is thoughtful
evaluation of economic concepts,
 may be difficult to enter or stay in an industry if there are
terminology, information and/or data
large firms with low average costs
appropriate to the question. The discussion
Why it might not be: uncertainties of alternative decisions and
 less complacency outcomes.
 more innovation
 increase quality of goods and services produced 2 A reasoned discussion which makes use of 3−5
 domestic competition leads to international economic information and clear analysis to
competitiveness evaluate economic issues and situations.
The answer may lack some depth and
development may be one−sided. There is
relevant use of economic concepts,
terminology, information and data
appropriate to the question.
1 There is a simple attempt at using 1−2

economic definitions and terminology.
Some reference may be made to economic
theory, with occasional understanding.
0 A mark of zero should be awarded for no 0

creditable content.

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4(a) Define emigration. 2
Emigration is when people exit / leave (1) a country (1) to

live in another country (1).
4(b) Explain two causes of a recession. 4 If more than two causes given, consider the first three.

Fall in total demand / low economic activity (1) due to lower
consumer confidence / falling consumption / falling
government spending / falling exports / increase imports (1)
Fall in investment (1) leading to fall in productive capacity (1)
Fall in population (1) e.g. due to emigration (1) leading to a
fall in number of workers (1)
Wars / natural disasters (1) causing destruction of factors of
production (1)
Higher interest rates (1) leading to lower borrowing /
consumption / investments (1)
Decreased consumer / investor confidence (1) decreasing
consumption / capital flight (1)
Higher income / corporation taxes (1) leading to falling
disposable income for consumption / falling after tax profits
leading to lower investments (1)
Lower productivity (1) reducing demand for the country’s
output (1).

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4(c) Analyse policy measures a government could use to 6

attract workers to return to their home country.

Increase national minimum wage (1) attract more unskilled /
low−paid workers to return (1).
Expansionary fiscal policy / expansionary monetary policy
(1) to increase job opportunities (1).
Improved education / healthcare / housing (1) higher
pensions (1) to raise living standards (1).
Better working conditions / quality of life (1) regulations to
protect workers from poor treatment (1) better fringe benefits
e.g. holiday entitlement
Greater security in the country (1) e.g. gun controls (1)
Labour market reforms (1) making it easier for firms to hire
(1) more job opportunities (1) people return to take up a job
(1).
Lower direct taxes (1) increase after−tax income /
disposable income (1) could encourage more people to work
(1) and return to the country to earn income (1).
Deregulation (1) encourages more firms to start up (1) more
entrepreneurs will want to start a business (1) encouraging
more people to return to start their own business (1).
Improving incentives to work and invest (1) more
investments (1) more demand for workers (1) more job
opportunities (1).
Measures to reduce inflation (1) making lower cost of living
attractive (1)

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4(d) Discuss whether or not an economy benefits from many 8

of its students studying abroad.
 other countries may have better education system to evaluate economic issues and
enabling students to gain better skills / experiences situations. One side of the argument may
 when students return to the country, there will be higher have more depth than the other, but overall
productivity i.e. quality of factors of production increases both sides of the argument are considered
 learn about new technologies which could help the and developed. There is thoughtful
domestic economy in the future evaluation of economic concepts,
 make connections abroad which could help establish terminology, information and/or data
future business contacts
 new ideas / products which could be brought back for uncertainties of alternative decisions and
the domestic economy outcomes.
 decrease poverty
 leads to further economic development. 2 A reasoned discussion which makes use of 3−5
 less spent on education by government economic information and clear analysis to
evaluate economic issues and situations.
Why it might not: The answer may lack some depth and
 students studying abroad might not return and stay in development may be one−sided. There is
the country they studied in (brain drain) relevant use of economic concepts,
 studying abroad is very expensive and lots of money is terminology, information and data
spent abroad instead of in the domestic economy appropriate to the question.
(money outflow)
 only a small proportion of the society can afford economic definitions and terminology.
studying abroad increasing inequality Some reference may be made to economic
 Lack of development of higher / university education in theory, with occasional understanding.
the country due to lack of demand.
 If inflow of students from abroad is larger than outflow of 0 A mark of zero should be awarded for no 0
students, then there may not be a problem. creditable content.
 loss of potential consumption / growth in home country
 unemployment of teachers / lecturers in the country,
costs to government in benefits

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5(a) Define government budget. 2
Government budget is a plan / forecast (1) for government

expenditure (1) and government revenue (1)
5(b) Explain, with examples, the difference between private 4

benefits and external benefits.

Private benefits are benefits incurred by the consumers or
producers of a product (1) for example, getting a better job
in the future for those consuming education / profits that a
firm earns (1)
External benefits are benefits incurred by the third party (1)

for example, increased productivity due to better education
and better healthcare as a result of better qualified doctors
(1)

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5(c) Analyse the reasons why workers employed in 6

education may earn more than workers employed in
other industries.

Higher demand for education workers (1) due to higher
demand for education than other industries (1) demand for
education workers is derived demand (1).
Lower supply (1) less people available to work in education
(1) e.g. not many qualified people want to become teachers /
lecturers (1).
Higher bargaining strengths (1) stronger trade unions (1)
e.g. teachers’ union is very strong.
Less discrimination (1) everyone is paid according to their
level of productivity (1) for example, female teachers less
discriminated than in other industries (1).
More favourable government policy for workers in education
/ government spends more on education (1) higher wages
set by the government for workers in education (1) as
education is essential for the economy / society (1).
More skilled (1) long-term training required (1) higher
productivity (1).
tertiary workers earn more (1) more value added (1).

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5(d) Discuss whether or not having a large population is 8

beneficial for the economy.
 high labour supply – higher levels of factors of to evaluate economic issues and
production – high productive capacity – PPC shifts situations. One side of the argument may
outwards have more depth than the other, but overall
 workers can be taxed − enabling spending on public both sided of the argument are considered
services and developed. There is thoughtful
 high spending leads to high total demand –high evaluation of economic concepts,
economic growth terminology, information and/or data
 high investment as firms can gain more profit
 high investment as firms can easily find more workers uncertainties of alternative decisions and
 high competition amongst workers – high quality / outcomes.
productivity of workers
 many entrepreneurs – increased competition – 2 A reasoned discussion which makes use of 3−5
increased innovation economic information and clear analysis to
 high demand for goods and services – increased output evaluate economic issues and situations.
of firms – economies of scale. The answer may lack some depth and
development may be one−sided. There is
Why it might not: relevant use of economic concepts,
 strain on resources – e.g. lack of proper housing, terminology, information and data
schools, hospitals appropriate to the question.
 external costs – e.g. pollution
 high total demand could lead to increase demand−pull economic definitions and terminology.
inflationary pressures Some reference may be made to economic
 shortage of jobs – increased unemployment theory, with occasional understanding.
 it depends upon the composition of the population e.g.
large proportion of under 5's will not increase output in 0 A mark of zero should be awarded for no 0
the short run. creditable content.

Cambridge IGCSE™: Economics 0455/23

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Cambridge IGCSE™: Economics 0455/23

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Cambridge IGCSE™

This document consists of 25 printed pages.

© UCLES 2023 [Turn over

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

GENERIC MARKING PRINCIPLE 2:

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

GENERIC MARKING PRINCIPLE 4:

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GENERIC MARKING PRINCIPLE 6:

Social Science−Specific Marking Principles

1 Components using point−based marking:

From this it follows that we:

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Uncertain what the candidate means – an illogical line of

Benefit of the doubt Not answered question

Blank page Not established – a statement made without any support

Caret – a word is missing. Repetition

Cross Tick – a credit worthy point

Highlight Too vague

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$39 000 (1)

Air pollution (1).

1(c) Explain the impact on a cow farmer’s profits if they are 2

Profit is revenue minus costs (1)

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1(e) Draw a demand and supply diagram, to show the effect 4

Demand and supply diagram:

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Analysis of expected relationship:

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1(h) Discuss whether or not job losses caused by a change 6

Award up to 4 marks for logical reasons why there might be

Award up to 4 marks for logical reasons why negative

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1(h)  an economy with a high mobility of factors of production

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Coherent analysis which might include:

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2(c)  difference in health / healthcare standards (1) higher

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2(d) Discuss whether or not low tax rates benefit an 8

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Question Answer Marks Guidance

Two from: Accept any reasonable challenges facing small firms.

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Coherent analysis which might include:

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3(d) Discuss whether or not competition is harmful to a firm. 8

1 There is a simple attempt at using 1−2

0 A mark of zero should be awarded for no 0

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4(a) Define emigration. 2

Emigration is when people exit / leave (1) a country (1) to

Logical explanation which might include:

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4(c) Analyse policy measures a government could use to 6

Coherent analysis which might include:

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4(d) Discuss whether or not an economy benefits from many 8

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5(a) Define government budget. 2

Government budget is a plan / forecast (1) for government

5(b) Explain, with examples, the difference between private 4

Logical explanation which might include:

External benefits are benefits incurred by the third party (1)

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5(c) Analyse the reasons why workers employed in 6

Coherent analysis which might include:

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5(d) Discuss whether or not having a large population is 8

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