03 9708 22 MS Prov Rma 23022024050650

Cambridge International AS & A Level
ECONOMICS 9708/22
Paper 2 AS Level Data Response and Essays March 2024
MARK SCHEME
Maximum Mark: 60
template
This document has 16 pages.
© UCLES 2020 [Turn over

9708/22 Cambridge International AS & A Level – Mark February/March 2024
Scheme
Pre-standardisation
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.
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.
© UCLES 2020 Page 2 of 16

Scheme
Pre-standardisation
Guidance on using levels-based mark schemes
Marking of work should be positive, rewarding achievement where possible, but clearly differentiating
across the whole range of marks, where appropriate.
The marker should look at the work and then make a judgement about which level statement is the
best fit. In practice, work does not always match one level statement precisely so a judgement may
need to be made between two or more level statements.
Once a best-fit level statement has been identified, use the following guidance to decide on a specific
mark:
 If the candidate’s work convincingly meets the level statement, award the highest mark.
 If the candidate’s work adequately meets the level statement, award the most appropriate mark
in the middle of the range (where middle marks are available).
 If the candidate’s work just meets the level statement, award the lowest mark.
Social Sciences and Humanities Subject 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, e.g., a scattergun approach to a question asking for n items
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).

Scheme
Pre-standardisation
3 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.
Assessment objectives
AO1 Knowledge and understanding

 Show knowledge of syllabus content, recalling facts, formulae, and definitions.
 Demonstrate understanding of syllabus content, giving appropriate explanations and examples.
 Apply knowledge and understanding to economic information using written, numerical,
and diagrammatic forms.
AO2 Analysis
 Examine economic issues and relationships, using relevant economic concepts, theories,
and information.
 Select, interpret, and organise economic information in written, numerical, and diagrammatic form.
 Use economic information to recognise patterns, relationships, causes and effects.
 Explain the impacts and consequences of changes in economic variables.
AO3 Evaluation
 Recognise assumptions and limitations of economic information and models.
 Assess economic information and the strengths and weaknesses of arguments.
 Recognise that some economic decisions involve consideration of factors such as priorities and
value judgements.
 Communicate reasoned judgements, conclusions, and decisions, based on the arguments.

Scheme
Pre-standardisation
Table A: AO1 Knowledge and understanding and AO2 Analysis
Use this table to give marks for each candidate response for AO1 Knowledge and understanding and
AO2 Analysis for Questions 2(b), 3(b), 4(b) and 5(b).
Level Description Marks

3  A detailed knowledge and understanding of relevant economic 6–8
concepts are included, using relevant explanations. Explanations are
supported by examples, where appropriate.
 The response clearly addresses the requirements of the question and

explains economic issues, and fully develops these explanations.
 Analysis is developed and detailed and makes accurate and relevant use of
economic concepts and theories. Where necessary, there is accurate and
relevant use of analytical tools such as diagrams and formulae, and these
are fully explained.
 Responses are well-organised, well-focused and presented in a logical and

coherent manner.
2  Knowledge and understanding of some relevant economic concepts are 3–5

included, using explanations and examples that are limited, over-generalised
or contain inaccuracies.
 The response addresses the general theme of the question and the relevant
economic issues, with limited development.
 Analysis is generally accurate with some development but little detail. Uses
analytical tools such as diagrams and formulae where necessary. Use of
these tools is partially accurate or not fully explained.
 Responses are generally logical and coherent but are sometimes lacking in
focus or organisation.
1  A small number of relevant knowledge points are included, and the 1–2
response is limited by significant errors or omissions.
 The response has little relevance to the question.
 Analysis where provided is largely descriptive. Use of analytical tools such as

diagrams and formulae, where necessary, may contain significant errors or
be omitted completely.
 Responses show limited organisation of economic ideas.
0 No creditable response. 0

Scheme
Pre-standardisation
Table B: AO3 Evaluation
Use this table to give marks for each candidate response for AO3 Evaluation for Questions 2(b),
3(b), 4(b) and 5(b).
Level Description Marks

2  Provides a justified conclusion or judgement that addresses the specific 3–4
requirements of the question.
 Makes developed, reasoned and well-supported evaluative comment(s).

1  Provides a vague or general conclusion or judgement in relation to the 1–2
question.
 Makes simple evaluative comment(s) with no development and little

supporting evidence.
0 No creditable response. 0

Scheme
Pre-standardisation
Section A
Question Answer Marks

Follow the point-based marking guidance at the top of this mark scheme.
1(a) Using the information in Table 1.1, compare the change in projected real 2
GDP growth of Japan with that in the US between 2022 and 2025.
Both countries experience positive growth over the period. (1) Both
experience a slowdown in the rate of growth. (1) Over the period Japanese
growth is slower than the USA. (1) average Growth rate in Japan over the
period is 1.5%, USA 2.7%
1(b) With the help of a production possibility curve (PPC) diagram, 2
demonstrate the likely impact of increased investment in AI on the
Japanese economy in the long run.
Correctly labelled diagram and curved or straight line PPC. (1)

Outward shift of PPC indicating increased economic capacity to produce. (1)
1(c) With the help of a demand and supply diagram, consider the impact of 4
additional investment in AI on the price and output of a US carmaker.
NOTE – Q amended after Vetter comments
Correctly labelled diagram showing initial equilibrium. (1)

Rightward shift in Supply curve establishing new equilibrium a lower P and
increased output. (1)
Explanation of changes with clear reference to diagram provided. Correct
shift (1).
Correct new equilibrium. (1)
1(d) Assess the possible impact on unemployment in Japan as a result of 6
the increased investment in AI.
In the short run many jobs may be lost as AI capital equipment replaces
labour operated machines and vehicles. E.g., Thousands of truck drivers lose
their jobs. (1) for statement, (1) for example. Extra mark for some further
elaboration. (1)
In the long run more job opportunities may arise as was the case with the
internet. E.g., High tech maintenance jobs for AI machinery. (1) for
statement, (1) for example. Extra mark for some further elaboration. (1)
Max of 5marks plus 1 for Evaluated Conclusion. Use textbox to show mark
distribution. (2,3,1)

Scheme
Question Pre-standardisation
Answer Marks
Follow the point-based marking guidance at the top of this mark scheme.
1(e) Assess the likely impact of the growth of AI on the specialisation and 6
trade of a country such as Japan.
Up to 3 marks for a clear explanation of the potential benefits of AI on both

specialisation and trade of a country. E.g., increased levels of productivity,
impact on costs/prices, development of comparative advantages
improvements in international competitiveness etc.
Up to 3 marks for a clear explanation of the potential drawbacks of AI on both

specialisation and trade of a country. E.g., problems of over-specialisation –
excessive use of non-renewable resources, over-reliance on one industry;
implications for structural unemployment
Max of 5 marks plus 1 for Evaluated Conclusion.
Use textbox to show mark distribution. (2,3,1)

Scheme
Section B Pre-standardisation

EITHER
2(a) With the help of a demand and supply diagram, explain how the 8
introduction of an indirect tax affects equilibrium in a market and
consider the extent to which the incidence of the tax will fall on the
consumer.
Follow the point-based marking guidance at the top of this mark scheme and
award:
up to 3 marks for AO1 Knowledge and understanding up to 3 marks for AO2
Analysis
up to 2 marks for AO3 Evaluation.
AO1 Knowledge and Understanding (max 3 marks)

An accurate definition of an indirect tax (1) shown through an accurate
diagram, correctly labelled axes and equilibrium price and quantity (1).
Understanding that indirect taxes are used to discourage the consumption of
demerit goods (1).
AO2 Analysis (max 3 marks)

Uses the diagram to explain that an indirect tax shifts the supply curve to the
left (1), which causes an increase in the price of the good to the consumer (1)
and reduces the quantity demanded (1).
AO3 Evaluation (max 2 marks)

One mark for a valid explanation that the incidence of tax borne by the
consumer will depend on the PED of the product (1), (and that the more price
inelastic demand is the greater the proportion of the tax is passed onto the
consumer (1)), with a second mark for a justified conclusion
AO1 Knowledge and understanding 3

AO2 Analysis 3
AO3 Evaluation 2

Scheme
Pre-standardisation
2(b) Assess whether the improved provision of information is likely to be the 12
best method to reduce the consumption of demerit goods.
Use Table A: AO1 Knowledge and understanding and AO2 Analysis and
Table B: AO3 Evaluation to mark candidate responses to this question.
AO1 and AO2 out of 8 marks. AO3 out of 4 marks.
Indicative content
Responses may include:
AO1 Knowledge and understanding and AO2 Analysis

 The meaning of improved provision of information
 How improved information would reduce the consumption of demerit goods;
consumers are aware of the ‘true’ costs from consuming demerit goods and
respond by reducing their demand – this may include a shift to the left of the
demand curve, or a shift to left of the MPC curve
 An explanation of the limitations of improved information – habitual
consumption, peer pressure, irrational behaviour
 An explanation of an alternative policy – taxation, minimum prices,
regulation backed by fines
AO3 Evaluation
 Consideration that fully assesses the relative effectiveness of the policies
analysed in reducing the consumption of demerit goods and arrives at a
reasoned conclusion concerning whether improved provision of information
is the ‘best’ approach
Accept all valid responses.

AO1 Knowledge and understanding and AO2 Analysis 8
AO3 Evaluation 4

Scheme
Pre-standardisation
OR
3(a) With the help of a formula, explain the meaning of income elasticity of 8
demand and consider the extent to which a rise in income will increase
the consumption of all goods and services.
award:
Analysis

An accurate definition of income elasticity of demand (1) and accurate
formula (1). Understanding of the difference between normal and inferior
goods (1).

Normal goods have a positive value (1). Uses a diagram (upwards sloping
income demand curve) or the formula to show why an increase in income
increases the consumption of such goods (1) – this should be justified with an
appropriate example (1).

One mark for a valid explanation that if the good is inferior good then the
demand for the good will fall when incomes rise (1) as consumers adjust their
spending habits and consumer more normal/luxury goods. The second mark
is for a justified conclusion

AO2 Analysis 3
AO3 Evaluation 2

Scheme
Pre-standardisation
3(b) Assess whether an estimate of the price elasticity of demand for a 12
product is likely to be more useful to a firm than an estimate of its price
elasticity of supply.
Indicative content

 The meaning of the terms PED/PES
 How PED estimates would be useful to business owners –it would indicate
the likely changes to revenue in response to changes in the price of a
product
 An explanation of the limitations of PED estimates – does not consider the
prices of complements/substitutes; income level of the consumer; trends;
ignores the relevance of costs so changes to profits are uncertain
 An explanation of how PES estimates would be useful to business owners -
the potential to invest in spare capacity which can be used if demand rises;
increase overtime payments to increase production; whether or not to
outsource to other firms who can meet supply
 An explanation of the limitations of PES estimates – e.g., practical ability to
increase the PES; the associated costs in making supply more
elastic/responsive
AO3 Evaluation
 Consideration that fully assesses the relative effectiveness of both PED/PES
estimates and their implications for business decision-making and arrives at
a reasoned conclusion concerning which concept (or otherwise) is most
useful

AO3 Evaluation 4

Scheme
Pre-standardisation
Section C

EITHER
4(a) Explain what is meant by a depreciation of the exchange rate and 8
consider whether a depreciation is likely to increase domestic real
output.
award:
Analysis

An accurate definition the exchange rate (1). Understanding that there is likely
to be a depreciation of the exchange rate if the demand for a currency falls (1)
or there is an increase in the supply of a currency (1).

A depreciation of the exchange rate will reduce (increase) the perceived price
of exports (imports) (1) which will increase the value of both (X-M) and
aggregate demand (1) and increase the rate of domestic real output (1)

One mark for a valid explanation that this assumes that the economy is not
operating at full capacity (1) or depends on the elasticity of demand for goods
that are traded internationally (1). The second mark is for a justified
conclusion.

AO2 Analysis 3
AO3 Evaluation 2

Scheme
Pre-standardisation
4(b) Assess whether contractionary fiscal policy is likely to be the best way 12
to reduce a current account deficit on the balance of payments.
Indicative content

 Understanding of the terms fiscal policy/current account deficit
 How contractionary fiscal policy might reduce a current account deficit – this
may include increased taxation might reduce imports/reduce demand-pull
inflationary pressure resulting in improved international price
competitiveness
 An explanation of the limitations of fiscal policy – impact on domestic
growth, unemployment
 An explanation of an alternative policy – monetary and/or supply side
policies, minimum prices, regulation backed by fines
AO3 Evaluation
 Consideration that fully assesses the relative effectiveness of the policies
analysed in reducing a current account deficit and arrives at a reasoned
conclusion concerning whether fiscal policy is the ‘best’ approach

AO3 Evaluation 4

Scheme
Pre-standardisation
OR
5(a) With the help of an aggregate demand and aggregate supply diagram, 8
explain how a decrease in interest rates could cause economic growth
and consider whether economic growth will always result in inflation.
award:
Analysis

A clear understanding of what is meant by:
 economics growth (1)
 inflation (1)
 interest rates (1)
 through an accurate diagram, correctly labelled axes, and equilibrium price
level and RGDP (1).

Uses the diagram(s) to explain how a decrease in interest rates will impact on
savings/borrowing (1) that cause will either cause an increase in
consumption/investment/next exports (1) which causes an increase in
economics growth/RGDP (1)

One mark for a valid explanation that rise in inflation assumes that the
economy is operating at full capacity; the growth may be focused on capital
intensive industries (1) or that the source of the growth may be long term in
nature (1). The second mark is for a justified conclusion.

AO2 Analysis 3
AO3 Evaluation 2

Scheme
Pre-standardisation
5(b) Assess whether economic growth is always desirable for an economy 12
Indicative content

 The meaning of the term economic growth
 An explanation of the potential benefits of economic growth for an economy
– higher incomes, reduction in unemployment, improved government
finances, increased international competitiveness, increases in both
consumer and business confidence, increased life expectancy.
 An explanation of the costs of economic growth for an economy – inflation,
current account deficits, inequality, pollution
AO3 Evaluation
 Consideration that fully assesses the relative perspectives of economic
growth for an economy and arrives at a reasoned conclusion concerning
which viewpoint (or otherwise) is most likely.

AO3 Evaluation 4

03 9708 22 MS Prov Rma 23022024050650

Uploaded by

Copyright:

Available Formats

03 9708 22 MS Prov Rma 23022024050650

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

03 9708 22 MS Prov Rma 23022024050650

Uploaded by

Copyright:

Available Formats

Cambridge International AS & A Level

This document has 16 pages.

© UCLES 2020 [Turn over

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

Marks must be awarded positively:

© UCLES 2020 Page 2 of 16

Social Sciences and Humanities Subject Specific Marking Principles

1 Components using point-based marking:

From this it follows that we:

2 Presentation of mark scheme:

© UCLES 2020 Page 3 of 16

AO1 Knowledge and understanding

© UCLES 2020 Page 4 of 16

Level Description Marks

 The response clearly addresses the requirements of the question and

 Responses are well-organised, well-focused and presented in a logical and

2  Knowledge and understanding of some relevant economic concepts are 3–5

 The response has little relevance to the question.

 Analysis where provided is largely descriptive. Use of analytical tools such as

 Responses show limited organisation of economic ideas.

© UCLES 2020 Page 5 of 16

Level Description Marks

 Makes developed, reasoned and well-supported evaluative comment(s).

 Makes simple evaluative comment(s) with no development and little

© UCLES 2020 Page 6 of 16

Question Answer Marks

Correctly labelled diagram and curved or straight line PPC. (1)

Correctly labelled diagram showing initial equilibrium. (1)

© UCLES 2020 Page 7 of 16

Up to 3 marks for a clear explanation of the potential benefits of AI on both

Up to 3 marks for a clear explanation of the potential drawbacks of AI on both

Max of 5 marks plus 1 for Evaluated Conclusion.

Use textbox to show mark distribution. (2,3,1)

© UCLES 2020 Page 8 of 16

Question Answer Marks

AO1 Knowledge and Understanding (max 3 marks)

AO2 Analysis (max 3 marks)

AO3 Evaluation (max 2 marks)

AO1 Knowledge and understanding 3

© UCLES 2020 Page 9 of 16

AO1 and AO2 out of 8 marks. AO3 out of 4 marks.

Responses may include:

AO1 Knowledge and understanding and AO2 Analysis

Accept all valid responses.

© UCLES 2020 Page 10 of 16

AO1 Knowledge and Understanding (max 3 marks)

AO2 Analysis (max 3 marks)

AO3 Evaluation (max 2 marks)

AO1 Knowledge and understanding 3

© UCLES 2020 Page 11 of 16

AO1 and AO2 out of 8 marks. AO3 out of 4 marks.

Responses may include:

AO1 Knowledge and understanding and AO2 Analysis

Accept all valid responses.

© UCLES 2020 Page 12 of 16

Question Answer Marks

AO1 Knowledge and Understanding (max 3 marks)

AO2 Analysis (max 3 marks)