Cambridge IGCSE™: Economics 0455/23 October/November 2021
Cambridge IGCSE™: Economics 0455/23 October/November 2021
Cambridge IGCSE™: Economics 0455/23 October/November 2021
ECONOMICS 0455/23
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.
These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptors for a question. Each question paper and mark scheme will also comply with these
marking principles.
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the
scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.
a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they are correct
c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)
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.
Examiner annotations
Confused SEEN
Level 1
Level 2
Level 3
1(a) Calculate the number of obese people in the UK in 2016. 1 Accept 18 million.
18.2 million/18 200 000/18.2 × 106
1(b) Identify two reasons why the demand for vegan food has 2 One mark each for each of two reasons.
increased in the UK.
Two from:
• (concerns about) health
• (concerns about) obesity
• (compassion for) animal welfare
• rise in income/getting richer/higher standard of living
• advertising of vegan products
• less consumption of meat
1(c) Explain one external benefit that may arise from eating 2 One mark for the external benefit identified and one mark
less meat. for the explanation.
1(d) Explain how food consumption in Senegal differed from 4 Accept a response from the viewpoint of the US e.g. US
the US in 2015. citizens ate more meat.
1(g) Discuss whether or not an increase in Senegalese 6 Apply this example to all questions with the command
government spending will stop the country experiencing word DISCUSS
a recession. (1g, 1h, 2d, 3d, 4d and 5d)
Award 1 mark for explanation of recession. Each point may be credited only once, on either side of an
argument, but separate development as to how/why the
Award up to 4 marks for logical reasons for why it might, outcome may differ is rewarded.
which might include:
Generic example Mar
• Government spending part of total (aggregate) demand k
(1) may increase total (aggregate) demand (1) may offset
fall in consumer expenditure (1) this may encourage Tax revenue may decrease 1
firms to produce more/attract new firms to set up (1)
employ more staff/lower (cyclical) unemployment (1) earn because of reason e.g. incomes may be 1
more income (1) purchase more goods and services (1). lower.
Two from:
2(b) Explain two advantages of raising the retirement age. 4 One mark each for each of two advantages identified and
one mark each for each of two explanations.
Logical explanation which might include:
2(c) Analyse how the price mechanism answers the three key 6
resource allocation questions.
In assessing each answer, use the table opposite. 3 A reasoned discussion which 6–8
accurately examines both sides of
Why it might: the economic argument, making
use of economic information and
• demerit goods are overconsumed and cause external clear and logical analysis to
costs evaluate economic issues and
• demerit goods and other products causing external costs situations. One side of the
can be taxed argument may have more depth
• indirect taxation on demerit goods can discourage their than the other, but overall, both
consumption sides of the argument are
• merit goods are under-consumed and create external considered and developed. There
benefits is thoughtful evaluation of
• indirect tax revenue can be used to subsidise or produce economic concepts, terminology,
merit goods information and/or data appropriate
• public goods would not be produced by the private sector to the question. The discussion
as they have the characteristics of non-rival and non- may also point out the possible
excludable uncertainties of alternative
• indirect tax revenue can be used to finance the decisions and outcomes.
production of public goods
2 A reasoned discussion which 3–5
Why it might not: makes use of economic information
and clear analysis to evaluate
• difficult to measure external costs economic issues and situations.
The answer may lack some depth
• demerit goods may be overtaxed, changing from being
and development may be one-
overconsumed to being under-consumed
sided. There is relevant use of
• demand for some demerit goods is price inelastic
economic concepts, terminology,
• indirect taxes may fall more heavily on the poor
information and data appropriate to
• demand may just shift to imports if other countries do not the question.
impose indirect tax or have lower tax rates
• tax revenue may not be used to promote the
consumption of merit and public goods
2(d)
Level Description Marks
3(b) Explain two ways an increase in wages can cause 4 One mark each for each of two ways identified and one
inflation. mark each for each of two explanations.
Logical explanation which might include: Allow 1 mark if refer to prices rise but no mention of
Increase in wages may increase total (aggregate) demand-pull or cost-push inflation
demand/consumption (1) causing demand-pull inflation (1).
Increase in wages may increase costs of production (1)
causing cost-push inflation (1).
3(d) Discuss whether or not an increase in foreign MNCs will 8 For level 3, an answer must look at both sides of
reduce a deficit on the current account of the balance of whether a deficit on the current account would be
payments of a host country. reduced.
In assessing each answer, use the table opposite. Level Description Marks
3(d)
Level Description Marks
Two from:
• higher output/growth
• higher income/living standards
• more employment/more jobs
• more choice/access to other markets
• lower price
• greater ability to take advantage of economies of
scale/greater efficiency/specialisation
• drives competition
• better quality goods
• stronger global co-operation
4(b) Explain two differences between a floating foreign 4 One mark each for each of two differences identified and
exchange rate and a fixed foreign exchange rate. one mark each for each of two explanations.
4(c) Analyse how a change in the pattern of employment in a 6 Allow up to 3 marks for why wages may change due to
country may change its average wage. changes in demand and supply with reference to a
particular industry.
Coherent analysis which might include:
Note: answers must address a change in pattern of
A higher proportion of skilled workers (1) due to better employment
education/training (1) will raise the average wage/skilled
workers tend to be highly paid (1).
In assessing each answer, use the table opposite. 3 A reasoned discussion which 6–8
accurately examines both sides of
Why it should: the economic argument, making
use of economic information and
• will have greater market share clear and logical analysis to
• may abuse greater market power evaluate economic issues and
• may become complacent situations. One side of the
• consumers may experience higher prices and lower argument may have more depth
quality than the other, but overall, both
• may engage in rationalisation sides of the argument are
• may increase unemployment considered and developed. There
• may experience diseconomies of scale is thoughtful evaluation of
economic concepts, terminology,
Why it should not: information and/or data appropriate
to the question. The discussion
• may innovate more may also point out the possible
• may provide consumers with lower prices and higher uncertainties of alternative
quality decisions and outcomes.
• may be more international competitive
2 A reasoned discussion which 3–5
• may improve current account position
makes use of economic information
• may increase economic growth and clear analysis to evaluate
• may experience economies of scale 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.
4(d)
Level Description Marks
5(b) Explain two reasons why a loss-making firm may 4 One mark each for each of two reasons identified and one
continue to produce. mark each for each of two explanations.
Logical explanation which might include: Reward but do not expect reference to predatory pricing.
May not expect the loss to last (1) may think demand will
rise/costs will fall in the future (1).
5(d)
Level Description Marks