Cambridge IGCSE ™: Economics

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Cambridge IGCSE™
ECONOMICS 0455/22
Paper 2 Structured Questions February/March 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 February/March 2023 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.
This document consists of 28 printed pages.
© UCLES 2023 [Turn over

0455/22 Cambridge IGCSE – Mark Scheme www.dynamicpapers.com
February/March 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 28

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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.

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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)
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).

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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 MAX

illogical line of 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
O
Level 1
Level 2
Level 3

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PREPARATION FOR MARKING
1 Make sure that you have completed the relevant training and have access to the RM Assessor Guide.
2 Make sure that you have read and understand the question paper, which you can download from https://support.rm.com/ca
3 Log in to RM Assessor then mark and submit the required number of practice and standardisation scripts. You will need to mark the
standardisation scripts to the required accuracy in order to be approved for marking live scripts. You may be asked to re-mark them, or to mark
a second sample, if you do not meet the required accuracy on your first attempt.
MARKING PROCESS
1 Mark strictly to the FINAL mark scheme, applying the criteria consistently and the general marking principles outlined on the previous page.
2 If you are in doubt about applying the mark scheme, consult your Team Leader.
3 Mark at a steady rate through the marking period. Do not rush, and do not leave too much until the end. If you anticipate a problem in meeting
the deadline, contact your Team Leader immediately and the Examiners’ Helpdesk.
4 Examiners will prepare a brief report on the performance of candidates to send to their Team Leader via email by the end of the marking
period. The Examiner should note strengths seen in answers and common errors or weaknesses. Constructive comments on the question
paper, mark scheme or procedures are also appreciated.
MARKING SPECIFICS
Crossed out work
1 All a candidate’s answers, crossed out or not, optional or not, must be marked.
2 The only response not to be marked is one that has been crossed out and replaced by another response for that exact same question.
3 Consequently, if a candidate has crossed out their response to an optional question and gone on to answer a different optional question then
both attempts must be marked. The higher mark will be awarded by the system according to the rubric.
0 (zero) marks or NR (no response)

1 Award NR if there is nothing at all written in answer to that question (often the case for optional questions).
2 Award NR if there is a comment which is not an attempt at the question (e.g. ‘can’t do it’ or ‘don’t know’ etc.)
3 Award NR if there is a symbol which is not an attempt at the question, such as a dash or question mark.
4 Award 0 (zero) if there is any attempt at the question which does not score marks. This includes copying the question onto an Answer
Booklet.
Annotation
1 Every question must have at least one annotation e.g. <NAQ> if it is an NR and <X> or <seen> if 0 marks are awarded.
2 Every mark awarded for a question (as shown in the mark input box to the right of the screen) must be indicated by a correctly
positioned tick on the script. The number in the box below the tick annotation must be equal to the mark awarded in the input box.
3 Every page of a script must have at least one annotation e.g. <BP> for a blank page

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Question Answer Marks Guidance
1(a) Calculate the value of US imports from China in 1 Accept the correct figure without the $ sign.
2020. 560 000 000 000.
5.6  10^11
$560bn (1).
1(b) Identify two causes of the increase in the quantity 2 If more than two causes given, consider the first three.
of US factors of production.
Accept increase in labour for increase in the labour force.
Land reclamation (1) increase in the labour force (1).
1(c) Explain one way that import tariffs could improve 2 One mark for a way identified and one mark for an explanation.
the US economy. If more than one way identified, consider the first two.
Could improve the current account / trade in goods / To gain two marks, one mark must come from improving the
trade in goods and services / balance of payments (1) current account, increase output or raise tax revenue.
by reducing imports / making domestic goods more
competitive with imports / raising the price of imports Could raise more revenue is not sufficient – need more tax
(1) revenue or more government revenue / income.
Could increase output / cause economic growth (1) by
increasing demand for US goods / raise employment
(1).
Could raise tax revenue (1) allowing the government
to spend more on (e.g. education) / improve the
(government budget position) (1).

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1(d) Explain two reasons why the US inflation rate fell 4 One mark each for each of two reasons identified and one mark
in 2020. each for each of two explanations.
Logical explanation which might include: If more than two reasons given, consider the first three.
Fall in consumer expenditure (1) lower total demand /
reduce demand-pull inflation (1). Reduction in bargaining power may also be linked to lower total
Reduction in workers’ bargaining power (1) fall in demand.
wage rises / wages / fall in rise in costs / fall in costs /
reduce cost-push inflation (1).
Higher unemployment (1) reduces confidence / lower
total demand / fall in consumer spending (1).
Fall in (real) GDP (1) lower incomes / purchasing
power / lower total demand (1).
Current account deficit (1) lower total demand / reduce
demand-pull inflation (1).
1(e) Draw a demand and supply diagram to show the 4

effect of an increase in the price of a complement
on the market for ice cream.
Demand and supply diagram:

Axes correctly labelled – price and quantity or p and q
(1).
Original demand and supply curves correctly labelled
(1).
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 government 5 Alternatively, some candidates may argue that changes in
spending and unemployment. unemployment, could lead to changes in government spending.
Credit both responses.
Coherent analysis which might include:
Overview:
Inverse relationship / negative relationship (1)
generally, the higher government spending, the lower
the unemployment rate (1).
Supporting evidence:
E.g. 2015 to 2019, government spending increased
and unemployment fell / 2015 to 2017 government
spending increased and unemployment fell (1)
processing / interpreting of data e.g. between 2015 to
2019, government spending rose by $700bn and
unemployment fell by 1.6% (points) (1).
Analysis of the expected relationship:

• higher government spending will increase total
demand (encouraging firms to expand and
employ more workers) (1)
• higher government spending may be on e.g.
education, training, infrastructure, subsidies which
could increase workers’ chances of gaining jobs
(1)
• higher employment will provide more tax revenue
for the government to spend / lower employment
will reduce tax revenue for the government to
spend (1).
Exception:
2020 (1) both government spending and
unemployment rose / government spending and
unemployment both at their highest (1).

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1(f) Analysis of the exception:

• government spending on unemployment benefits
may have increased / rise in government
spending not enough to stop GDP / consumer
expenditure falling / GDP fell / there may be a
time delay before higher government spending
reduces unemployment (1).

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1(g) Discuss whether or not a central bank should aim 6 May approach the answer from the point of view of the
for a low inflation rate. disadvantages of high inflation.
2nd side should examine either the possible negative effects of
Award up to 4 marks for logical reasons why it should, what the central bank may do to reduce the inflation rate or the
which may include: possible loss of any beneficial effects of high inflation.
• can increase international price competitiveness
(1) improve the current account balance / No marks for possible effects on the exchange rate.
increase exports (1) increase employment /
reduce unemployment (1) Apply this example to all questions with the
• can create certainty (1) which may increase command word DISCUSS
confidence (1) which may encourage investment / (1g, 1h, 2d, 3d, 4d and 5d)
attract MNCs (1) which may increase output /
result in economic growth (1) Each point may be credited only once, on either side of an
• can prevent a random redistribution of income (1) argument, but separate development as to how / why the outcome
e.g. protect savers (1) may differ is rewarded.
• may protect purchasing power (1) by promoting
price stability (1) Generic example Mark
• maintain / increase living standards (1) if wages
rise by more than the price level (1) Tax revenue may decrease… 1
• can avoid fiscal drag (1) prevent people being put
in higher tax brackets (1) ...because of reason e.g. incomes may be lower. 1
• can reduce menu / shoe leather costs (1) reduce
firms’ costs of production (1). Tax revenue may increase because incomes may be 0
higher i.e. reverse of a previous argument.
Award up to 4 marks for logical reasons why it should
not, which may include: Tax revenue may increase because of a different 1
• increases in the rate of interest (1) contractionary reason i.e. not the reverse of a previous argument
monetary policy (1) can reduce consumer e.g. government spending on subsidies may
expenditure / can reduce investment (1) can stimulate the economy more than spending on
reduce total demand (1) education.

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1(g) • lower total demand can increase unemployment

(1) cyclical unemployment (1) reduce economic
growth (1)
• low inflation can turn into deflation (1) leading to a
recession (1)
• makes it harder to pay off debt (1) increasing the
risk of firms going out of business / households
getting into difficulties (1)
• central bank may aim for economic growth / low
unemployment (1) higher demand-pull inflation
may provide more encouragement to firms to
expand (1).

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1(h) Discuss whether or not economic growth benefits 6

everyone in the US.
Award up to 4 marks for logical reasons why it might,

which may include:
• economic growth increases output / GDP (1)

increases income per head / higher incomes /
higher wages (1) enables more purchasing power
/ people to enjoy more goods and services (1)
• economic growth can increase employment (1)
raise living standards (1) may reduce poverty (1)
• economic growth can increase tax revenue (1)
enabling the government to spend more on e.g.
education and healthcare (1)
• economic growth may introduce better working
conditions (1).
Award up to 4 marks for logical reasons why it might

not, which may include:
• there may be an increase in unemployment due
to lack of skills / some industries declining /
greater use of capital / capital-intensive
production (1) structural unemployment may
occur (1)
• income is unevenly distributed (1) those on low
incomes e.g. the sick may not benefit (1)
• higher output may result in external costs (1) e.g.
pollution (1) people living near factories may
suffer (1)
• higher output may be the result of more resources
being devoted to capital goods (1) may take time
for consumers to benefit from more consumer
goods (1)

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1(h) • higher output may reduce natural resources (1)

reducing future generations’ ability to benefit from
them / reduce sustainability (1)
• higher output may be the result of workers
working longer hours (1) in poor working
conditions (1)
• may cause inflation (1) adversely affecting the
poor / savers (1).
2(a) Identify two reasons why people become 2 If more than two reasons given, consider the first three.
entrepreneurs.
To make money / earn a profit (1) to be independent /

not having to be told what to do (1) to follow an
interest / be innovative / to run / own business (1)
willingness to take risks (1) possess good leadership
skills (1) easier to set up a firm / lower barriers to entry
(1) for self-esteem / status / become well-known (1)
flexible working hours (1) unable to find a job (1).

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2(b) Explain two benefits an MNC can bring its host 4 One mark each for each of two benefits identified and one mark
country. each for each of two explanations.
Logical explanation which might include: If more than two benefits given, consider the first three.
Increase employment (1) raise living standards /
increase income / higher wages / reduce poverty (1).
Increase skills (1) provide training to workers (1).
Increase exports / reduce imports (1) improve the
current account of the balance of payments (1).
Increase GDP / output (1) raise economic growth (1).
Increase competition (1) raise efficiency / reduce
prices (1).
Bring in new technology (1) raise quality / raise
productive capacity / productivity / reduce costs of
production (1).
Increase the range of goods and services available in
the country (1) raise living standards (1).
Increase tax revenue (1) enable the government to
spend more (1).
Increase infrastructure (1) an MNC may build e.g.
roads / reduce e.g. transport costs (1).

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2(c) Analyse how a government could encourage the 6 Note: reference to measures to reduce consumption of demerit
consumption of merit goods. goods can only be rewarded if clearly linked to switching to
alternative merit goods.
Provide a subsidy (1) reduce any indirect tax (1) lower

price (1) make the goods more affordable (1) raise
quality (1).
Provide information about the benefits of consuming
the goods (1) e.g. health campaigns / advertisements
(1) overcome information failure (1).
Use regulation (1) make consumption compulsory /
impose fines for non-consumption (1) e.g. school
attendance (1).
Provide services such as education / healthcare (1)
free to consumers (1).
Set maximum price (1) to make the goods more
affordable (1) but may create a shortage (1).
Measures to reduce demerit goods clearly linked to
idea of encouraging substitution of merit goods (1)
relevant example (1).

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2(d) Discuss whether or not private sector firms are 8

Level Description Marks
likely to charge lower prices than public sector
firms. 3 A reasoned discussion which accurately 6–8
examines both sides of the economic
In assessing each answer, use the table opposite. argument, making use of economic
information and clear and logical analysis
Why they might: to evaluate economic issues and
• competition may encourage private sector firms to situations. One side of the argument may
charge low prices have more depth than the other, but
• private sector firms may seek to reduce waste overall, both sides of the argument are
and costs to avoid going out of business considered and developed. There is
• private sector firms may have more funds to thoughtful evaluation of economic
invest concepts, terminology, information and /
• higher investment may reduce costs of production or data appropriate to the question. The
• may be an MNC with significant economies of discussion may also point out the
scale possible uncertainties of alternative
decisions and outcomes.
Why they might not:
2 A reasoned discussion which makes use 3–5
• profit motive may encourage private sector firms
of economic information and clear
to charge high prices
analysis to evaluate economic issues
• private sector firms may be monopolies
and situations. The answer may lack
• public sector firms may be subsidised some depth and development may be
• public sector firms may charge low prices to make one-sided. There is relevant use of
the products affordable economic concepts, terminology,
• public sector firms may produce on a large scale 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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3(a) Define a minimum price. 2
A price set by e.g. government (1) above the

equilibrium price (1).
A price floor (1) to encourage higher supply (1) will
result in a surplus (1).
3(b) Explain two advantages of capital-intensive 4 One mark each for each of two advantages identified and one
production. mark each for each of two explanations.
Logical explanation which might include: If more than two advantages are given, consider the first three.
Lower costs of production (1) can produce on a large
scale / may result in lower prices / higher profits (1).
Raise productivity / efficiency (1) higher output / can Accepting lower costs of production as overall lower costs.
produce faster (1). Nothing for lower labour costs.
Quality may increase / consistency of quality may be
greater (1) may increase demand (1).
Absence of human error (1) less wastage (1).
Capital goods can work long hours (1) need few
breaks / no need for holidays (1).
Capital goods will not take industrial action (1) will not
disrupt production (1).
Can eliminate boring / repetitive / physically
demanding tasks (1) increase workers’ job satisfaction
(1).

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3(c) Analyse why low-income farmers are likely to have 6

low living standards.
May be unable to afford basic necessities / may spend

a high proportion of income on basic necessities / low
purchasing power / low ability to consume goods and
services (1).
Unable to save much (1) banks reluctant to lend to
them (1) examples of items they may need to borrow
to buy which could improve their quality of life (1).
Unable to afford good quality housing (1) which can
result in poor health / overcrowding (1).
Unable to afford good health care (1) good nutrition /
food (1) more likely to become ill (1) lower life
expectancy (1).
Unable to afford good education (1) reduce range of
interests (1).
Unable to buy good capital equipment for farms (1)
making work hard (1).
May have to reinvest into their farms giving them less
to spend (1).
May experience poor working conditions / physically
demanding work (1) long hours (1) reducing health (1)
Live in rural areas (1) which may lack infrastructure
(1).

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3(d) Discuss whether or not a government subsidy on 8

the export of sugar will help it achieve its
macroeconomic aims. 3 A reasoned discussion which accurately 6–8
Why it might: to evaluate economic issues and
• lower price of exports and increase their supply situations. One side of the argument may
• increase export revenue and improve the current have more depth than the other, but
account balance overall, both sides of the argument are
• higher output of sugar can contribute to economic considered and developed. There is
growth thoughtful evaluation of economic
• more people may be employed in growing sugar concepts, terminology, information and /
and processing sugar cane or data appropriate to the question. The
discussion may also point out the
Why it might not: possible uncertainties of alternative
• other countries’ sugar may still be cheaper decisions and outcomes.
• may make farmers and mill owners lazy
2 A reasoned discussion which makes use 3–5
• sugar sellers may not lower their prices
• demand for sugar may be price-inelastic analysis to evaluate economic issues
• introduction of capital equipment may lower and situations. The answer may lack
employment some depth and development may be
• other countries may retaliate against the subsidy one-sided. There is relevant use of
and so current account position may not be economic concepts, terminology,
improved information and data appropriate to the
• higher exports may increase total demand question.
resulting in inflation
• opportunity cost – e.g. spending on education 1 There is a simple attempt at using 1–2
which may be more effective. economic definitions and terminology.
understanding.
creditable content.

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4(a) Identify two causes of an increase in labour 2 Nothing for more motivated – TV.
productivity.
Two from:
• improved education
• improved training / higher skills
• improved healthcare
• higher pay / bonuses / lower income tax
• better quality capital equipment / advances in
technology
• shorter working hours / longer holidays
• better working conditions / better (fringe) benefits
• increased experience
• higher unemployment
• specialisation

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4(b) Explain two reasons why someone may choose to 4 One mark each for each of two reasons identified and one mark
become a doctor. each for each of two explanations.
Logical explanation which might include: If more than two reasons given, consider the first three.
High pay (1) resulting in high living standards / caused
by low supply / high demand / high number of job
vacancies / strong bargaining power / high
qualifications / high skills (1).
Vocation (1) wanting to help people (1).
Interest / job satisfaction (1) enjoying the challenges
involved (1).
Status (1) doctors are highly regarded (1).
Family tradition (1) parents may have been doctors
(1).
High pensions (1) enabling high living standards
during retirement (1).
May be good working conditions (1) working inside
(1).
Job security (1) difficult to replace / essential service
(1).
(Fringe / non-wage) benefits (1) e.g. pension schemes
(1).

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4(c) Analyse how advances in technology may 6 Reward but do not expect reference to gaining a comparative
improve the current account balance on a advantage.
country’s balance of payments.
Raise productivity / increase efficiency / increase

speed of production / increase output (1) reduce costs
of production (1) lower prices (1) raise quality (1)
create new products (1) increase international
competitiveness (1) increase exports (1) reduce
imports (1) increase export revenue (1) reduce import
expenditure (1) improve trade in goods (and services)
balance / reduce a current account deficit / create a
surplus / increase a surplus (1).
Increase access to information about goods and
services (1) promote sales (1).
Increase foreign tourism (1) easier to book foreign
holidays (1) increase speed of transport (1).
Make it easier to keep in contact with branches
abroad (1) encourage setting up branches in other
countries (1) receive profits from other countries (1)
increase primary income (1).

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4(d) Discuss whether or not a country with a high 8

population growth rate is likely to experience a
high economic growth rate. 3 A reasoned discussion which accurately 6–8
Why it might: to evaluate economic issues and
• may have an increasing labour force, capable of situations. One side of the argument may
producing a higher output have more depth than the other, but
• likely to have higher demand, encouraging higher overall, both sides of the argument are
output considered and developed. There is
• larger markets can enable greater advantage to thoughtful evaluation of economic
be taken of economies of scale concepts, terminology, information and /
• may have higher tax revenue, enabling the or data appropriate to the question. The
government to spend more on e.g. education discussion may also point out the
which can promote economic growth possible uncertainties of alternative
Why it might not:
• may have an increase in the number of 2 A reasoned discussion which makes use 3–5
dependents, reducing resources which can be of economic information and clear
devoted to increasing productive capacity analysis to evaluate economic issues
• rise in birth rate may reduce the size of the labour
some depth and development may be
force as people leave the labour force to bring up
one-sided. There is relevant use of
children
economic concepts, terminology,
• resources may be depleted, reducing productive
information and data appropriate to the
capacity
question.
• external costs e.g. congestion and pollution may
increase which may reduce productivity. 1 There is a simple attempt at using 1–2
understanding.
creditable content.

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5(a) Identify two determinants of price elasticity of 2 If more than two determinants given, consider the first three.
demand.
Two from:
• substitutes
• whether a luxury or necessity
• proportion of income taken
• whether habit forming / addictive
• whether the purchase can be postponed
• time period
• breadth of definition
• brand loyalty
• number of uses
• complements
5(b) Explain how the economic problem results in 4

consumers having to make choices.
Logical explanation which might include:
The economic problem is unlimited / infinite wants (1)

exceeding limited / finite / scare resources (1)
resulting in scarcity (1).
Consumers have limited incomes (1) and so cannot
buy everything they want (1).
Buying one product involves an opportunity cost (1) in
the form of another product sacrificed / example (1).

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5(c) Analyse why some workers decide not to join a 6

trade union.
Trade unions charge a subscription fee (1) workers

cannot afford to join (1) may be unemployed / have
low income (1).
Government legislation may prevent trade union
membership / government may discourage
membership (1) may reduce the power of trade unions
(1) less benefit from joining (1).
Employers may discourage membership (1) may think
it will reduce chance of employment / increase chance
of unemployment (1) chance of promotion (1).
May be satisfied with wages (1) working conditions (1)
may have job security (1) no need for collective
bargaining (1).
May be employed in industries that do not have a
history of trade union membership (1).
May be reluctant to take industrial action (1) may lose
pay during a strike (1).
May not agree with the objectives of the trade union
(1).
May follow example of fellow workers (1).

February/March 2023
PUBLISHED
5(d) Discuss whether or not a government should 8

reduce the amount of money it gives to each state
pensioner. 3 A reasoned discussion which accurately 6–8
Why it should: to evaluate economic issues and
• ageing population can mean the amount of situations. One side of the argument may
government spending on pensions rises have more depth than the other, but
significantly overall, both sided of the argument are
• a reduction in the state pension could reduce a considered and developed. There is
budget deficit thoughtful evaluation of economic
• may persuade people to work longer, raising concepts, terminology, information and /
output and tax revenue or data appropriate to the question. The
• paying pensions involves an opportunity cost, discussion may also point out the
could spend more on e.g. education possible uncertainties of alternative
Why it should not:
• will reduce living standards of pensioners 2 A reasoned discussion which makes use 3–5
• may increase the numbers living in absolute
analysis to evaluate economic issues
poverty
• will reduce total demand
some depth and development may be
• lower spending by pensioners could reduce one-sided. There is relevant use of
output and increase unemployment. economic concepts, terminology,
information and data appropriate to the
question.
1 There is a simple attempt at using 1–2
understanding.
creditable content.

Cambridge IGCSE ™: Economics

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This document consists of 28 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:

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1 Components using point-based marking:

From this it follows that we:

2 Presentation of mark scheme:

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Uncertain what the candidate means – an MAX

Benefit of the doubt Not answered question

Blank page Not established – a statement made

Caret – a word is missing. Repetition

Cross Tick – a credit worthy point

Highlight Too vague

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0 (zero) marks or NR (no response)

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

Demand and supply diagram:

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Analysis of the expected relationship:

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1(f) Analysis of the exception:

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1(g) • lower total demand can increase unemployment

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1(h) Discuss whether or not economic growth benefits 6

Award up to 4 marks for logical reasons why it might,

• economic growth increases output / GDP (1)

Award up to 4 marks for logical reasons why it might

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1(h) • higher output may reduce natural resources (1)

Question Answer Marks Guidance

To make money / earn a profit (1) to be independent /

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Provide a subsidy (1) reduce any indirect tax (1) lower

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2(d) Discuss whether or not private sector firms are 8

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3(a) Define a minimum price. 2

A price set by e.g. government (1) above the

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3(c) Analyse why low-income farmers are likely to have 6

Coherent analysis which might include:

May be unable to afford basic necessities / may spend

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3(d) Discuss whether or not a government subsidy on 8

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Coherent analysis which might include:

Raise productivity / increase efficiency / increase

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4(d) Discuss whether or not a country with a high 8

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5(b) Explain how the economic problem results in 4

Logical explanation which might include:

The economic problem is unlimited / infinite wants (1)

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5(c) Analyse why some workers decide not to join a 6

Coherent analysis which might include:

Trade unions charge a subscription fee (1) workers

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5(d) Discuss whether or not a government should 8