Cambridge IGCSE™: Economics 0455/22 October/November 2021

Cambridge IGCSE™
ECONOMICS 0455/22
Paper 2 Structured Questions October/November 2021
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 October/November 2021 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.
This document consists of 24 printed pages.
© UCLES 2021 [Turn over

0455/22 Cambridge IGCSE – Mark Scheme October/November 2021
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 2021 Page 2 of 24

PUBLISHED
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)

PUBLISHED
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.

PUBLISHED
Examiner annotations
Uncertain what the candidate means – an illogical line of thought
Benefit of the doubt
Blank page
Caret – a word is missing.
Confused
Cross
L Nothing creditworthy
Level 1
Level 2
Level 3
Maximum mark on one side.
NAQ
Not established – a statement made without any support

PUBLISHED
Repetition
SEEN
Tick – a credit worthy point
Too vague

PUBLISHED
Question Answer Marks Guidance
1(a) Calculate, in $, Air India’s loss in 2018. 1 7 × 10 to the power 8.

7 × 10ˆ8.
0.7bn, 700m, 700 000 000.
1(b) Identify two substitutes for air travel. 2 For ‘ships’ accept water travel.
Trains (1) ships (1).
1(c) Explain one characteristic that suggests that Air India 2

was a monopoly in 1994.
Share of the market was 100% (1) only firm / share above
25% of the market / share above 40% / a complete/pure
monopoly / no competition (1).
Able to set price (1) a price-maker (1).
1(d) Explain two reasons why a government may privatise an 4 One mark each for each of two reasons identified and one
industry. mark each for each of two explanations.
Logical explanation which might include:

Raise (tax) revenue (1) which could be spent on e.g.
education, healthcare / increase government spending (1).
Increase efficiency / may perform better in the private sector /
higher productivity (1) introduce a profit motive / increase
output/GDP / reduce costs of production (1).
Increase competition (1) lower price / increase quality /
increase choice (1).
Industry may be loss making / costly to run (1) reduce need to
use tax revenue to finance industry / tax revenue can be used
for other purposes e.g. education / increase government
spending / reduce national debt / tax rates might be cut (1).

PUBLISHED
1(e) Analyse how India’s position on the current account of 4 Up to 2 marks maximum for idea of size of current account
its balance of payments in 2017 compares with the other balance without reference to deficit or surplus e.g. China
four countries. has the largest current account balance and India the
lowest.
Coherent analysis which might include: So maximum of 2 marks without reference to deficit/s or
Brazil, India and Kenya had a current account deficit (1) while surplus/es.
China and Russia had a current account surplus (1).
India’s current account deficit is the largest in terms of $s (1) No marks for writing about a budget balance.
but the second largest in % terms (1).
China’s current account had a larger impact on its economy
in terms of $s (1) and Kenya’s in percentage terms (1).
Russia’s current account surplus is larger than China’s in
terms of % of GDP (1).
China has the largest surplus in $s (1).
1(f) Analyse how a successful airline industry can promote 5

economic growth.
Coherent analysis which might include;

May increase number of tourists (1) raise revenue from
tourism / increase the size of the tourist industry (1) may
increase exports / imports / increase the ease of movement of
people and goods into and out of the country (1).
May attract more MNCs (1) these will increase the country’s
output/GDP (1) introduce new technology / new methods of
production (1).
May lower costs of production (1) raising firms’ profits (1)
providing the incentive/finance to expand (1) increase the
country’s output/GDP (1).
May increase employment (1) raise incomes (1) increase total
demand (1) increase tax revenue (1) more could be spent on
e.g. education (1).
May increase (geographical) mobility of labour (1) making it
easier for expanding firms to recruit workers (1).

PUBLISHED
1(g) Discuss whether the Indian government should increase 6 Apply this example to all questions with the command
the tax on airline fuel. word DISCUSS
(1g, 1h, 2d, 3d, 4d and 5d)
Award up to 4 marks for why it should:
• Raise revenue (1) can be used to finance e.g. education /
training of pilots / increase government spending (1) Each point may be credited only once, on either side of an
burden more likely to fall on the rich / may enable tax on argument, but separate development as to how/why the
basic necessities to be reduced (1). outcome may differ is rewarded.
• May reduce market failure (1) air travel causes external
costs / social cost exceeds social benefit (1) air/noise Generic example mark
pollution (1) a tax may reduce air travel / lower demand
for air travel (1) by raising price (1) encourage people to Tax revenue may decrease … 1
switch to other forms of transport (1).
... because of reason e.g. incomes may be 1
Award up to 4 marks for why it should not: lower.
• Will increase airlines’ costs / reduce airlines’ profits /
cause a loss (1) airlines’ other costs are rising (1) difficult Tax revenue may increase because incomes 0
for them to cover higher costs / raise prices (1) due to may be higher i.e. reverse of a previous
elastic demand / price sensitive demand (1) may go out argument.
of business (1) may discourage investment (1) causing
unemployment (1). Tax revenue may increase because of a different 1
• May reduce tourism in the country (1) harming the reason i.e. not the reverse of a previous
current account position (1). argument e.g. government spending on
• Airline fuel is already highly taxed (1) may be difficult to subsidies may stimulate the economy more than
tax further (1). spending on education.
• Ait travel is safer than car travel in many countries (1) so
injuries may increase if there is a switch between the two
(1).

PUBLISHED
1(h) Discuss whether more people will apply to be pilots for 6 Note: some points may be given in reverse e.g. education
Indian airlines in the future. standards may rise.
Award up to 4 marks for logical reasons why they might:

• Introduction of new technology (1) will make the job
easier (1)
• Improved staff training (1) improve/increase skills (1)
improve motivation / satisfaction (1)
• improve working conditions (1) airlines want to retain
staff (1)
• More routes are being flown / size of industry is
increasing (1) demand for pilots may increase / more job
opportunities (1) may raise wages (1).
• More fringe benefits may be provided (1) example (1).
• Being a pilot is a highly regarded occupation in many
countries (1).
Award up to 4 marks for logical reasons why they might

not:
• There may not be more people qualified to become pilots
(1) education standards may fall / qualifications may be
high (1).
• Period of training may increase / cost of training may
increase (1).
• Other jobs may offer higher wages / better working
conditions / wages of pilots may fall (1) example of other
jobs (1).
• Advances in technology may reduce the need for pilots
(1) may increase skills needed (1).
• Increased tax on fuel may reduce the size of the airline
industry (1) causing people to expect fewer job
opportunities / unemployment of pilots (1).
• Price of substitute forms of transport may reduce (1)
lowering demand for pilots (1).

PUBLISHED
1(h) • Job may require workers to be away from their families

(1) people may want to stay close to home (1).
• Working hours may be unsociable (1) people may want
to spend more time with their families (1).
• May be considered in some cases to be a risky job (1).
2(a) Define a free good. 2 No marks for an example.
No opportunity cost (1) a good that takes no

resources/factors of production to produce / naturally
abundant in supply / does not use scarce resources (1).
2(b) Explain, with examples, the difference between the 4 For tertiary sector, it is not sufficient to just have the sector
secondary sector and the tertiary sector. which sells products as this is only part of the sector.
Logical explanation which might include: But for the tertiary sector example accept the sale of a
Secondary sector covers manufacturing (and construction) / product e.g. the sale of jewellery.
converts primary products into finished goods (1) e.g. car
industry (1).
Tertiary sector covers services / final stage of production (1)
e.g. insurance (1).

PUBLISHED
2(c) Analyse, using a production possibility curve (PPC), the 6 Nothing for higher output, higher GDP as this is uncertain.
effect of an increase in the quality of its resources on an
economy.
Up to 4 marks for the diagram:

Axes correctly labelled with different outputs (1).
Initial curve drawn as a curve / line sloping downward to the
axes (1).
New curve drawn as a curve / line sloping downward to the
axes (1).
Shift indicated by arrow or letter (1).
Up to 2 marks for coherent analysis which might include:

Better quality resources will increase productivity (1) enable
more of both types of goods to be produced (1) with a given
quantity of resources (1) increase productive potential /
productive capacity / total supply (1) cause economic growth
(1).

PUBLISHED
2(d) Discuss whether or not a fall in a country’s birth rate will 8

Level Description Marks
benefit an 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
• reduce the number of dependents analysis to evaluate economic issues
• fewer workers away from work to bring up children and situations. One side of the
• enable resources to be used to increase economic argument may have more depth than
growth / raise living standards the other, but overall, both sides of the
• reduce pressure on the environment argument are considered and
• move towards the optimum population developed. There is thoughtful
evaluation of economic concepts,
Why it might not: terminology, information and/or data
• reduce the size of the labour force in the longer term appropriate to the question. The
• reduce labour mobility discussion may also point out the
• create an ageing population possible uncertainties of alternative
• reduce size of markets decisions and outcomes.
2 A reasoned discussion which makes 3–5

use of economic information and clear
analysis to 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 u sing 1–2

economic definitions and terminology.
Some reference may be made to
economic theory, with occasional
understanding.

PUBLISHED
2(d)
0 A mark of zero should be awarded for 0

no creditable content.
3(a) Identify two determinants of price elasticity of supply. 2 Accept weather.
Two from:
• ability to store
• level of stocks
• perishability
• production time
• level of spare capacity
• cost of altering supply
• time period under consideration – short/long run
3(b) Explain two advantages to an economy of ending child 4 One mark each for each of two advantages identified and
labour. one mark each for each of two explanations.

Enable children to be educated (1) raise productivity /
workers’ skills / literacy rates / long run economic growth (1).
Improve children’s health (1) increase life expectancy / raise
living standards (1).
Reduce cycle of poverty (1) children will later gain higher paid
jobs (1).
Raise wages (1) due to reduced supply of cheap labour (1).
Remove international bans / encourage more foreign tourists
(1) increase exports (1).
Increase job opportunities for adults (1) lower unemployment
/ increase employment of adults (1).

PUBLISHED
3(c) Analyse how average cost can change as output 6 Nothing for reference to causes of changes in total costs
increases. e.g. employing more workers will increase wages paid.
Average cost may fall due to economies of scale (1) example

of an economy of scale e.g. financial economy (1)
explanation of the example (up to 2 marks) e.g. banks may
charge lower interest rates (1) reducing firms’ cost of
borrowing (1).
Another example e.g. buying economy (1) explanation of the
example (up to 2 marks) e.g. able to buy in bulk (1) and
receive a discount (1).
Higher output may enable fixed costs to be spread over a
larger output (1) which may reduce average fixed costs (1)
whether average total cost will fall will depend on what
happens to average fixed cost plus average variable cost (1).
Average cost may rise due to diseconomies of scale (1)
example e.g. managerial economy (1) explanation of the
example (up to 2 marks) e.g. difficulty of keeping control of a
large organisation (1) leading to more mistakes / poor
decision making (1).
Another example e.g. poor labour relations (1) explanation of
the example (up to 2 marks) e.g. lack of contact between
workers and managers (1) may be strikes (1).

PUBLISHED
3(d) Discuss whether or not an economy would benefit from 8

allocating more of its resources to agriculture.
• specialisation may increase efficiency, raise output, analysis to evaluate economic issues
increase exports and situations. One side of the
• may improve the current account of the balance of argument may have more depth than
payments the other, but overall, both sides of the
• imports of food may be reduced, reduced reliance on argument are considered and
other countries for basic necessities developed. There is thoughtful
• health and safety standards may be maintained evaluation of economic concepts,
• the industry is labour intensive in some countries and so terminology, information and/or data
may reduce unemployment appropriate to the question. The
discussion may also point out the
Why it might not: possible uncertainties of alternative
• wages in the industry tend to be relatively low decisions and outcomes.
• the supply of agricultural products can fluctuate
significantly due to changes in weather conditions 2 A reasoned discussion which makes 3–5
• opportunity cost of fewer resources for manufacturing use of economic information and clear
goods and for services analysis to evaluate economic issues
• demand for manufactured goods and for services tend to and situations. The answer may lack
rise more as income increases some depth and development may be
• agriculture uses up considerable amounts of water. one-sided. There is relevant use of
economic concepts, terminology,
question.
1 There is a simple attempt at u sing 1–2

understanding.

PUBLISHED
3(d)

4(a) Identify two of the three resource allocation decisions. 2
Two from:
• what to produce
• how to produce
• who to produce for

PUBLISHED
4(b) Explain two reasons why households may save less even 4 One mark each for each of two reasons identified and one
though their income has increased. mark each for each of two explanations.

Fall in the rate of interest (1) which would reduce the return
from saving / spend/borrow rather than save (1).
Inflation (1) spend more now before prices rise further / may
reduce the real rate of interest (1).
Increase in confidence about the future (1) less motive to
save for hard times / less concerned will experience
unemployment or fall in income (1).
Fall in range, number or reliability of financial institutions (1)
which would reduce the safe places to save (1).
Greater consumption opportunities / spend more / higher
living standards (1) with the introduction of new products /
lower prices / may be able to afford private education /
healthcare (1).
Increase in taxes (1) reducing disposable income (1).
Rise in family size (1) increasing household expenses (1).
Rise in debt (1) may reduce ability of households to e.g. to
put money into a savings account (1).
Change in social attitudes (1) due to e.g. change in age of
households (1).

PUBLISHED
4(c) Analyse how a trade union may benefit its members. 6
Coherent analysis which might include:

A trade union may negotiate with employers (1) to raise
wages (1) improve working conditions (1) example (1)
increase fringe benefits (1) example (1) through collective
bargaining (1) and sometimes industrial action / strikes (1).
A trade union may settle disputes between the employer and
the workers (1) e.g. over changes in working practices (1)
protect workers’ rights (1).
A trade union may seek to protect the employment of its
members (1) in some cases negotiate favourable redundancy
terms (1).
A trade union may negotiate / put pressure on the
government (1) to e.g. raise a national minimum wage or
reduce the retirement age (1).
In some countries, trade unions provide benefits and services
to members (1) e.g. training services (1).

PUBLISHED
4(d) Discuss whether or not a fall in its foreign exchange rate 8

will improve a country’s macroeconomic performance.
• export prices will fall and import prices will rise analysis to evaluate economic issues
• demand for exports may rise and demand for imports and situations. One side of the
may fall argument may have more depth than
• domestic output will increase, economic growth may rise the other, but overall, both sides of the
• more workers may be employed, reducing argument are considered and
unemployment developed. There is thoughtful
• a deficit on the current account of the balance of evaluation of economic concepts,
payments may be reduced or a surplus increased terminology, information and/or data
• may encourage foreign investment if it is thought assets appropriate to the question. The
can be bought more cheaply. discussion may also point out the
possible uncertainties of alternative
Why it might not: decisions and outcomes.
• rise in price of imported capital goods and raw materials
may increase costs of production, causing cost-push 2 A reasoned discussion which makes 3–5
inflation use of economic information and clear
• higher total (aggregate) demand may cause demand-pull analysis to evaluate economic issues
inflation, especially if the economy is working close to full and situations. The answer may lack
capacity some depth and development may be
• demand for exports and imports may be price inelastic, one-sided. There is relevant use of
causing export revenue to fall and import expenditure to economic concepts, terminology,
rise – in such a case may benefit more from a rise in the information and data appropriate to the
exchange rate question.
• trade restrictions imposed by other countries may
prevent the country from exporting more products 1 There is a simple attempt at u sing 1–2
• may discourage foreign investment due to a lack of economic definitions and terminology.
confidence in the country’s future economic prospects. Some reference may be made to
understanding.

PUBLISHED
4(d)

5(a) Identify two ways a government could reduce income 2 Accept higher taxes on high incomes and lower taxes on
inequality. low incomes but do not accept increasing taxes on
incomes as this is TV.
Two from:
• progressive taxation Redistributing income is TV – could be redistributing from
• state benefits the poor to the rich.
• spending on state education / training
• spending on state healthcare
• equal pay legislation
• minimum wage
5(b) Explain two advantages of a market economic system. 4 One mark each for each of two advantages identified and
one mark each for each of two explanations.
Consumer sovereignty (1) with consumers deciding what Nothing for no taxes.
goods and services are produced (1).
Low prices (1) due to competition (1).
High quality (1) due to innovation (1).
Consumer choice (1) variety of products produced (1).
Greater efficiency (1) due to the profit motive (1).
Automatic adjustment to changes in demand and supply /
quick response to changes in demand and supply (1) via
changes in price / with use of the price mechanism / increase
consumer satisfaction (1).

PUBLISHED
5(c) Analyse why life expectancy may decrease. 6
Coherent analysis which might include:

Incomes may fall (1) lowering living standards / reducing
access to basic necessities (1).
Reduction in healthcare (1) e.g limited access to medication
(1).
Reduction in education (1) people may lead less healthy lives
(1) more smoking (1) more ‘junk food’ (1) less exercise (1).
Rise in poor nutrition / malnutrition (1) eating more low-quality
food / people not having enough food (1).
More pollution (1) making people more susceptible to
diseases (1).
May be spread of new diseases / pandemics (1) wars / civil
unrest (1).
Climate change (1) may result in more natural disasters (1).
More people employed in jobs with poor working conditions /
more dangerous jobs (1) resulting in more sickness /
accidents (1).

PUBLISHED
5(d) Discuss whether or not supply-side policy measures can 8 Only accept lower interest rates, if linked to increasing total
reduce inflation. supply.
In assessing each answer, use the table opposite.

Why they might: 3 A reasoned discussion which accurately 6–8
• they may increase total (aggregate) supply, reducing examines both sides of the economic
cost-push inflation argument, making use of economic
• they can allow total (aggregate) demand to increase information and clear and logical
without causing inflation analysis to evaluate economic issues
• education and training can increase labour productivity, and situations. One side of the
reducing labour costs argument may have more depth than
• a cut in direct taxes may increase the incentive to be the other, but overall, both sides of the
more productive and more innovative argument are considered and
• labour market reforms may reduce power of trade unions developed. There is thoughtful
and reduce rise in wages evaluation of economic concepts,
• subsidies can lower costs of production terminology, information and/or data
appropriate to the question. The
Why they might not: discussion may also point out the
• privatisation does not always increase competition and possible uncertainties of alternative
so does not always lower prices decisions and outcomes.
• education and training can be expensive, may be in
areas that are not in demand and will have a time lag 2 A reasoned discussion which makes 3–5
• cuts in income tax may increase total (aggregate) use of economic information and clear
demand as well as total (aggregate) supply analysis to evaluate economic issues
• resource limitations / unable to increase productive and situations. The answer may lack
capacity due to e.g. limited land available some depth and development may be
• inflation may be caused by rise in price of raw materials one-sided. There is relevant use of
which have no domestic substitute e.g. oil economic concepts, terminology,
question.

PUBLISHED
5(d)
1 There is a simple attempt at using 1–2

understanding.


Cambridge IGCSE™: Economics 0455/22 October/November 2021

Uploaded by

Copyright:

Available Formats

Cambridge IGCSE™: Economics 0455/22 October/November 2021

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

Cambridge IGCSE™: Economics 0455/22 October/November 2021

Uploaded by

Copyright:

Available Formats

Cambridge IGCSE™

This document consists of 24 printed pages.

© UCLES 2021 [Turn over

Generic Marking Principles

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:

© UCLES 2021 Page 2 of 24

GENERIC MARKING PRINCIPLE 6:

Social Science-Specific Marking Principles

1 Components using point-based marking:

From this it follows that we:

© UCLES 2021 Page 3 of 24

© UCLES 2021 Page 4 of 24

Uncertain what the candidate means – an illogical line of thought

Benefit of the doubt

Caret – a word is missing.

Maximum mark on one side.

Not established – a statement made without any support

© UCLES 2021 Page 5 of 24

Tick – a credit worthy point

© UCLES 2021 Page 6 of 24

1(a) Calculate, in $, Air India’s loss in 2018. 1 7 × 10 to the power 8.

Trains (1) ships (1).

1(c) Explain one characteristic that suggests that Air India 2

Logical explanation which might include:

© UCLES 2021 Page 7 of 24

1(f) Analyse how a successful airline industry can promote 5

Coherent analysis which might include;

© UCLES 2021 Page 8 of 24

© UCLES 2021 Page 9 of 24

Award up to 4 marks for logical reasons why they might:

Award up to 4 marks for logical reasons why they might

© UCLES 2021 Page 10 of 24

1(h) • Job may require workers to be away from their families

Question Answer Marks Guidance

2(a) Define a free good. 2 No marks for an example.

No opportunity cost (1) a good that takes no

© UCLES 2021 Page 11 of 24

Up to 4 marks for the diagram:

Up to 2 marks for coherent analysis which might include:

© UCLES 2021 Page 12 of 24

2(d) Discuss whether or not a fall in a country’s birth rate will 8

2 A reasoned discussion which makes 3–5

1 There is a simple attempt at u sing 1–2

© UCLES 2021 Page 13 of 24

0 A mark of zero should be awarded for 0

Question Answer Marks Guidance

3(a) Identify two determinants of price elasticity of supply. 2 Accept weather.

Logical explanation which might include:

© UCLES 2021 Page 14 of 24

Average cost may fall due to economies of scale (1) example

© UCLES 2021 Page 15 of 24

3(d) Discuss whether or not an economy would benefit from 8

1 There is a simple attempt at u sing 1–2

© UCLES 2021 Page 16 of 24