Mark Scheme Summer 2008

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Mark Scheme Summer 2008

IGCSE

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Edexcel is one of t he leading examining and awarding bodies in t he UK and t hroughout t he world. We provide a wide range of qualif icat ions including academic, vocat ional, occupat ional and specif ic programmes f or empl oyers.

Through a net work of UK and overseas of f ices, Edexcel’ s cent res receive t he support t hey need t o help t hem deliver t heir educat ion and t raining programmes t o learners.

For f urt her inf ormat ion, please call our GCE line on 0844 576 0025, our GCSE t eam on 0844 576 0027, or visit our websit e at www. edexcel. org. uk.

Summer 2008

Publicat ion Code UG020254

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General Marking Guidance

• All candidat es must receive t he same t reat ment . Examiners must mark t he f irst candidat e in exact ly t he same way as t hey mark t he last .

• Mark schemes should be applied posit ively. Candidat es must be rewarded f or what t hey have shown t hey can do rat her t han penalised f or omissions.

• Examiners should mark according t o t he mark scheme not according t o t heir percept ion of where t he grade boundaries may lie.

• There is no ceiling on achievement . All marks on t he mark scheme should be used appropriat ely.

• All t he marks on t he mark scheme are designed t o be awarded. Examiners should al ways award f ull marks if deserved, i. e. if t he answer mat ches t he mark scheme. Examiners should also be prepared t o award zero marks if t he candidat e’ s response is not wort hy of credit according t o t he mark scheme.

• Where some j udgement is required, mark schemes will provide t he principles by which marks will be awarded and exemplif icat ion may be limit ed.

• When examiners are in doubt regarding t he applicat ion of t he mark scheme t o a candidat e’ s response, t he t eam leader must be consult ed.

• Crossed out work shoul d be marked UNLESS t he candidat e has replaced it wit h an alt ernat ive response.

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4350 1F Mark Scheme Summer 2008

Quest ion Number

Answer Mark

1(a)(i) 1 mark f or original price P1.

1 mark f or original quant it y Q1. (2)

Quest ion Number

Answer Mark

1(a)(ii) 1 mark f or shif t t o lef t of demand curve. (1)

Quest ion Number

Answer Mark

1(a)(iii) 1 mark f or new equil ibrium price, P2 and 1 mark f or new

quant it y, Q2. (2)

Quest ion Number

Answer Mark

1(b)(i) Accurat e def init ion = 2 marks. Responsiveness of demand t o a change in price.

Accept f ormula f or 2 marks.

1 mark f or incomplet e or part ial def init ion. (2)

Quest ion Number Answer Mark 1(b)(ii) $480 (1) Quest ion Number Answer Mark 1(b)(iii) $500 (1) Quest ion Number Answer Mark 1(b)(iv) Elast ic (1) Quest ion Number Answer Mark

1(b)(v) Fact or ident if ied, 1 mark e. g. luxury/ necessit y,

subst it ut es. Explanat ion, 1 mark e. g. necessit y – change

in price people st ill demand good. (2)

Quest ion Number

Answer Mark

1(c)(i) Transport provided by t he st at e, 1 mark, 1 mark f or

example. Accept any f easible example. (2)

Quest ion Number

Answer Mark

(6)

Quest ion Number

Answer Mark

1(c)(iii) Diagram – up t o 3 marks: 1 mark f or movement of S t o right .

1 mark f or new lower equilibrium price 1 mark f or increase in quant it y.

Explanat ion: 1 mark f or subsidies reduce cost s.

1 mark f or f irm passes on reduced cost s t o consumers. 1 mark f or ref erence t o limit at ion t o t he working of

subsidies: incidence/ elast icit y. Max 5 marks. (5)

Quest ion Number Answer Mark 2(a)(i) Primary (1) Quest ion Number Answer Mark

2(a)(ii) Example, 1 mark e. g. f armer, miner. If (a)(i) incorrect

don’ t penalise t wice in t his part . (1)

Quest ion Number

Answer Mark

2(a)(iii) Tert iary. (1)

Quest ion Number

Answer Mark

2(a)(iv) Example, 1 mark e. g. cl erk, t eacher. If (a)(i) incorrect

don’ t penalise t wice in t his part . (1)

Quest ion Number

Answer Mark

2(a)(v) Out put (1 mark) per worker (1 mark) (2)

Quest ion Number

Answer Mark

2(a)(vi) Each way ident if ied, 1 mark e. g. division of labour, mechanisat ion, mot ivat ion.

Each explanat ion, 1 mark e. g. each worker becomes more skilled at his/ her t ask, machines work at a

consist ent rat e, happy workers produce more! (4)

Quest ion Number

Answer Mark

2(b)(i) Each ext ernalit y ident if ied, 1 mark. E. g. air poll ut ion,

(7)

Quest ion Number

Answer Mark

2(b)(ii) Tax = increase in cost (1 mark). Decrease prof it s (1

mark). (2)

Quest ion Number

Answer Mark

2(b)(iii) Met hod ident if ied, 1 mark. E. g. increase in ot her t axes –

pet rol, road t ax or met hods t o reduce emissions. (1)

Quest ion Number Indicat ive cont ent

2(b)(iv)

Level Mark Descript or

Level 1 1-2 Accept any met hod even if not given in (b)(iiii). Brief explanat ion of each met hod (2 marks). e. g. The daily charge of 5 would increase cost s (1 mark), increasing road t ax woul d af f ect all lorries not j ust t hose going int o London (1 mark)

Level 2 3-4 Ef f ect of each met hod (2 marks) e. g. f irms would t ry t o reduce visit s t o London (1 mark), j ourneys int o London might st ay t he same (1 mark).

Level 3 5 Reasoned decision, (1 mark). E. g. The daily charge of 5 would increase cost s (1 mark) and so f irms woul d t ry t o reduce visit s t o London (1 mark). The ot her met hod (increasing road t ax) would af f ect all lorries not j ust t hose going int o London (1 mark) so j ourneys int o London might st ay t he same (1 mark). Theref ore t he charge will be bet t er as it is aimed at a specif ic probl em (1 mark). j ourneys int o London might st ay t he same (1 mark). Quest ion

Number

Answer Mark

3(a)(i) Budget def icit . (1)

Quest ion Number

Answer Mark

3(a)(ii) Expendit ure great er t han revenue, 1 mark. Ref erence t o

f igures in dat a, 1 mark. (2)

Quest ion Number Answer Mark 3(a)(iii) Fiscal. (1) Quest ion Number Answer Mark

3(b)(i) Direct : t axes on income and wealt h (1mark) Example (1

mark) e. g. income t ax. (2)

Quest ion Number

Answer Mark

3(b)(ii) Indirect : Taxes on expendit ure (1 mark) Example (1

(8)

Quest ion Number

Answer Mark

3(b)(iii) Advant age ident if ied (1 mark), expl anat ion (1 mark). E. g. decreases demand (1 mark) f or demerit goods (1 mark). Accept increases government spending and an example of t his.

(2)

Quest ion Number

Answer Mark

3(b)(iv) Disadvant age ident if ied (1 mark), explanat ion (1 mark). E. g. increase in price (1 mark) may lead t o inf l at ion (1

mark). (2)

Quest ion Number

Answer Mark

3(c)(i) Obj ect ive ident if ied 1 mark. E. g. inf lat ion, balance of payment s, economic growt h, increase in st andard of living, prot ect environment

(1)

Quest ion Number

Answer Mark

3(c)(ii) Def init ion 1 mark, example 1 mark. E. g. Unemployment due t o a decline in t he demand of an indust ry. E. g. coal

mining. (2)

3(c)(iii)

Level 1 1 Def init ion/ examples of supply side policy. E. g. increasing mobilit y of labour.

Level 2 2-3 Explanat ion of how policy works/ advant ages of policy.

Level 3 4-5 Must include advant ages and disadvant ages (l imit at ions). Supply side policies t ry t o increase t he mobilit y of l abour (1 mark) t hrough ret raining (1 mark). They give workers new skills (1mark) but workers may not be abl e t o f ind j obs in t heir home area (1 mark) and it may t ake mont hs f or new skil l s t o be acquired (1 mark). Quest ion

Number

Answer Mark

4(a)(i) Visible Export s – Visible import s.

1 mark f or export s – Import s. Must have “ goods” or

“ visibles” f or second mark. (2)

Quest ion Number

Answer Mark

(9)

Quest ion Number

Answer Mark

4(a)(iii) -$2. 8bn. Requires –ve sign, or ‘ (in def icit ’ ).

$ sign or ‘ bn’ not required. (1)

Quest ion Number

Answer Mark

4(b)(i) Cars = balance of t rade (1)

Quest ion Number

Answer Mark

4(b)(ii) Insurance = balance of invisibles (1)

Quest ion Number

Answer Mark

4(b)(iii) Banking = balance of invisibles (1)

Quest ion Number

Answer Mark

4(c)(i) Group of count ries (1 mark) which j oin t oget her t o

promot e f ree t rade bet ween t hemselves (1 mark) Accept

example of t rading bl oc f or 1 mark e. g. EU. (2)

Quest ion Number

Answer Mark

4(c)(ii) Argument ident if ied f or – 1 mark, Explanat ion 1 mark.

E. g. increase in market size – export s can increase. (2)

Quest ion Number

Answer Mark

4(c)(iii) Argument ident if ied against – 1 mark, Expl anat ion 1

mark. E. g. more compet it ion, import s increase. (2)

Quest ion Number

Answer Mark

4(d)(i) Reason ident if ied 1 mark e. g. unemployment f rom cheap

import s. (1)

Quest ion Number

Answer Mark

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4(d)(iii)

Level 1 1 Explanat ion of met hod chosen.

Level 2 2 Explanat ion of met hod wit h some development showing how it decreases import s.

Level 3 3-4 Explanat ion of met hod and some development showing how it decreases import s and ext ent of success.

E. g. Tarif f s (1 mark) are a t ax which will increase t he price of import s and so reduce demand (1 mark). Their success will depend on t he elast icit y of demand of t he good (1 mark). If t he good is a necessit y t hen an increase in price will have lit t le ef f ect on demand (1 mark).

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4350 2H Mark Scheme Summer 2008

Quest ion Number

Answer Mark

1(a)(i) 1 mark f or original price P1.

1 mark f or original quant it y Q1. (2)

Quest ion Number

Answer Mark

1(a)(ii) 1 mark f or shif t t o lef t of demand curve. (1)

Quest ion Number

Answer Mark

1(a)(iii) 1 mark f or new equil ibrium price, P2 and 1 mark f or new quant it y, Q2, corresponding t o a shif t t o t he lef t of t he

demand curve. (2) Quest ion Number Answer Mark 1(b)(i) Elast ic (1) Quest ion Number Answer Mark

1(b)(ii) Elast ic demand curve 1 mark (t he p and q change will show t his)

Price f all and quant it y rise 1 mark

1 mark f or explaining t hat as price f alls TR rises.

1 mark f or “ change in price brings more t han responsive change in quant it y demanded” or similar.

If answer t o 1(b)(i) ‘ inel ast ic’ t hen accept ‘ inel ast ic demand curve’ in 1(b)(ii)

(4)

Quest ion Number

Answer Mark

1(c)(i) Each f act or ident if ied, 1 mark. E. g. t ime, st ocks, spare

capacit y. (2)

1(c)(ii)

Level 1 1-2 Explanat ion of one f act or up t o 2 marks.

Level 2 3-4 Explanat ion of bot h f act ors up t o 4 marks.

Level 3 5 Explanat ion of bot h f act ors up t o 4 marks wit h some reasoned conclusion of most import ant . E. g. If a f irm has st ocks of goods (1 mark) t hen it can respond t o price changes and put more goods ont o t he market (1 mark). However t his can onl y happen f or a short period of t ime (1 mark). Time (1 mark) is t he most import ant f act or as in t he short run a f irm can alt er suppl y by st ocks or

variable f act ors but in t he long run all f act ors can change (1 mark). Any relevant f act ors can be considered and marks shoul d be

awarded f or reasoned explanat ions e. g. it may be t hat in some circumst ances t ime is not such an import ant f act or.

(12)

Quest ion Number

Answer Mark

1(d)(i) Transport provided by t he st at e/ government , 1 mark, 1

mark f or example. Accept any f easible exampl e. (2)

Quest ion Number

Answer Mark

1(d)(ii) Mixed economy. (1)

Quest ion Number

Answer Mark

1(d)(iii) Diagram – up t o 3 marks: 1 mark f or movement of S t o right .

1 mark f or new lower equilibrium price 1 mark f or increase in quant it y.

Explanat ion: 1 mark f or subsidies reduce cost s.

1 mark f or f irm passes on reduced cost s t o consumers. 1 mark f or ref erence t o limit at ion t o t he working of subsidies: incidence/ elast icit y.

Maximum 2 marks f or explanat ion

(5) Quest ion Number Answer Mark 2(a)(i) Primary (1) Quest ion Number Answer Mark

2(a)(ii) Example, 1 mark e. g. f armer, miner. If (a)(i) incorrect don’ t penalise t wice in t his part .

(1)

Quest ion Number

Answer Mark

2(a)(iii) Out put per worker (2 marks). 1 mark f or ‘ amount produced by workf orce’

(2)

Quest ion Number

Answer Mark

2(a)(iv) Each way ident if ied, 1 e. g. division of labour, comput ers/ t echnology. Development , 1 mark. E. g. division of l abour increases skills and comput ers increase t he speed of many clerical t asks.

Accept mot ivat ion met hods e. g. bet t er working condit ions.

(4)

Quest ion Number

Answer Mark

2(b)(i) Each ext ernalit y ident if ied, 1 mark. E. g. air poll ut ion,

(13)

Quest ion Number

Answer Mark

2(b)(ii) Met hod ident if ied, 1 mark. E. g. increase in ot her t axes – pet rol, road t ax or met hods t o reduce emissions.

Don’ t accept ‘ t ax’ unless specif icall y explained in 2(b)(iii)

(1)

2(b)(iii) Accept any relevant met hod Level Mark Descript or

Level 1 1-2 Brief explanat ion of each met hod (2 marks). e. g. The daily charge of £5 would increase cost s (1 mark), increasing road t ax would af f ect all lorries not j ust t hose going int o London (1 mark)

Level 2 3-4 Ef f ect of each met hod (2 marks) e. g. f irms would t ry t o reduce visit s t o London (1 mark), j ourneys int o London might st ay t he same (1 mark).

Level 3 5 Reasoned decision, (1 mark). E. g. The daily charge of £5

would increase cost s (1 mark) and so f irms would t ry t o reduce visit s t o London (1 mark). The ot her met hod (increasing road t ax) would af f ect all lorries not j ust t hose going int o London (1 mark) so j ourneys int o London might st ay t he same (1 mark). Theref ore t he charge will be bet t er as it is aimed at a specif ic problem (1 mark). j ourneys int o London might st ay t he same (1 mark). Just one considered maximum 3 marks.

Quest ion Number Answer Mark 2(c)(i) 500 (1) Quest ion Number Answer Mark 2(c)(ii) £2 (1) Quest ion Number Answer Mark

2(c)(iii) Aim of f irm in privat e sect or; prof it .

Aim of f irm in public sect or; public welf are. (2)

2(c)(iv)

Level 1 1-3 If only benef it s or cost s up t o 2 marks, 1 mark f or def init ion

Level 2 4 Must have bot h a benef it and a cost explained.

Level 3 5 Must have bot h a benef it and a cost explained and a reasoned j udgement . E. g. privat isat ion can make an indust ry more ef f icient (1 mark) as it is no l onger support ed by t he government (1 mark). However, if it remains a monopoly (1 mark) t hen it may damage ef f iciency as now t he government has no cont rol over it (1 mark). Shoul d have some evaluat ive st at ement f or maximum marks.

(14)

Quest ion Number

Answer Mark

3(a)(i) Budget def icit . (1)

Quest ion Number

Answer Mark

3(a)(ii) Expendit ure great er t han revenue, 1 mark. Ref erence t o f igures in dat a, 1 mark. If answer in (a)(i) incorrect but explanat ion in (a)(ii) mat ches it t hen award 1 mark

(2) Quest ion Number Answer Mark 3(a)(iii) Fiscal. (1) Quest ion Number Answer Mark

3(b)(i) Progressive: must show % t aken in t ax increasing as income increases e. g.

Income: $5000 Tax: $500 %t ax rat e: 10% Income: $10000 Tax: $2000 %t ax rat e: 20%

Up t o 2 marks f or example. Can be 2+1, or 1+2 (3)

Quest ion Number

Answer Mark

3(b)(ii) Regressive: must show % t aken in t ax decreasing as income increases e. g.

Income: $5000 Tax: $1000 %t ax rat e: 20% Income: $10000 Tax: $1000 %t ax rat e: 10%

Up t o 2 marks f or example. Can be 2+1, or 1+2 (3)

Quest ion Number

Answer Mark

3(b)(iii) Advant age ident if ied, 1 mark explanat ion, 1mark. E. g. consumers have more t o spend and t his will reduce unemployment .

Disadvant age ident if ied, 1 mark explanat ion, 1mark.

E. g. increase in demand might lead t o inf lat ion. (4)

Quest ion Number

Answer Mark

3(b)(iv) Met hod ident if ied 1 mark e. g. selling of f asset s, f ines, prof it s of st at e indust ries, rent s

(1)

Quest ion Number

Answer Mark

3(c)(i) Obj ect ive ident if ied 1 mark. E. g. inf lat ion, balance of payment s, economic growt h, increase in st andard of living, prot ect environment

(15)

Quest ion Number

Answer Mark

3(c)(ii) St ruct ural: E. g. Unempl oyment due t o a decline in t he demand of an indust ry (1 mark). E. g. coal mining (1 mark). 1 mark f or decline in demand f or skills.

Seasonal: E. g. Unempl oyment due t o j obs avail able at dif f erent t imes of year (1 mark) E. g. apple pickers (1 mark).

(4)

3(c)(iii)

Level 1 1 Def init ion/ examples of supply side policy. E. g. increasing mobilit y of l abour.

Level 2 2-3 Explanat ion of how policy works/ advant ages of policy. Max 3 f or supply side policies t o reduce general unempl oyment .

Level 3 4-5 Must include advant ages and disadvant ages (l imit at ions). Supply side policies t ry t o increase t he mobilit y of l abour (1 mark) t hrough ret raining (1 mark). They give workers new skills (1 mark) but workers may not be able t o f ind j obs in t heir home area (1 mark) and it may t ake mont hs f or new skills t o be acquired (1 mark).

Quest ion Number

Answer Mark

4(a)(i) Visible Export s – Visible import s.

1 mark f or export s – Import s. Must have “ goods” or “ visibles” f or second mark. Must have some indicat ion of dif f erence in import s and export s.

(2)

Quest ion Number

Answer Mark

4(a)(ii) $49. 9bn.

$ sign or ‘ bn’ not required

(1)

Quest ion Number

Answer Mark

4(a)(iii) -$2. 8bn.

Requires –ve sign, or ‘ (in def icit ’ ). $ sign or ‘ bn’ not required.

(1)

Quest ion Number

Answer Mark

4(b)(i) Hat s(B) = Visible export s (1)

Quest ion Number

Answer Mark

4(b)(ii) Businessman (C) = Invisible import s (1)

Quest ion Number

Answer Mark

(16)

Quest ion Number

Answer Mark

4(c)(i) Each reason 1 mark. E. g. prot ect employment , inf ant indust ries.

(2)

Quest ion Number

Answer Mark

4(c)(ii) Each met hod ident if ied, 1 mark. E. g. t arif f s, quot as, subsidies

(2)

4(c)(iii)

Level 1 1 Explanat ion of met hod chosen.

Level 2 2 Explanat ion of met hod wit h some development showing how it decreases import s.

Level 3 3-4 Explanat ion of met hod and some development showing how it decreases import s and ext ent of success.

E. g. Tarif f s (1 mark) are a t ax which will increase t he price of import s and so reduce demand (1 mark). Their success will depend on t he elast icit y of demand of t he good (1 mark). If t he good is a necessit y t hen an increase in price wil l have lit t le ef f ect on demand (1 mark).

Quest ion Number

Answer Mark

4(d)(i) Group of count ries (1 mark) which j oin t oget her t o promot e f ree t rade bet ween t hemselves (1 mark) or example of f ree t rade area

(2)

Quest ion Number

Answer Mark

4(d)(ii) Each ef f ect , 1 mark. Development 1 mark e. g. count ries out side t he bloc might f ind it dif f icult t o export t o t he bloc (1 mark) because of t he ext ernal t arif f (1 mark) and import s may increase as goods f rom bloc count ries may

become more compet it ive. (4)

Quest ion Number

Answer Mark

4(d)(iii) Each ef f ect , 1 mark. Development 1 mark e. g. count ries inside t he bl oc will have larger market (1 mark) so export s t o bloc count ries will increase. (1 mark). Firms will f ace increased compet it ion (1 mark) so wil l become

more ef f icient . (1 mark) (4)

(17)

4350 03 Mark Scheme Summer 2008

Quest ion Number

Indicat ive cont ent Mark

1(a) ive 2 P’ or

incre

Give 1 swer t hat has some idea e. g. ‘ increase in GDP’ ,

increase in l iving t c. (2)

G ‘

marks f or a clear st at ement such as ‘ increase in real GD ase in real out put (of goods and services), et c.

mark f or an an

st andards, increase in economic wealt h, e Quest ion

Number

1(b) Give 1 mark f or st at ing t hat growt h rat es in Germany and t he UK are wer t han in

mark f or German and UK f igures.

Give 1 . ‘ subst ant ially

lower’

Give 1 rowt h in

Germany an s l ess t han 2% whereas in most ot her count ries it is at

Give 1 baij an

and An )

Give 1 mar ison of count ry(s) wit h Germany

and t h

Give 1 evel oped

count r all develo Give 1 he f igures 1 ext r No direct us Only U Max 4 (4) lo Give 1 more

ot her count ries.

mark f or some relat ive comment on t his e. g .

mark f or using f igures t o compare rat es e. g. ‘ g d t he UK i

least 5%’ .

mark f or some indicat ion t hat count ries such as Azer gola have very high rat es c2x t he next highest (China

k f or any ot her compar e UK

mark f or a comment on Germany & UK being d ies who t end t o have lower rat es while t he rest are ping.

mark f or a descript ive account i. e. writ ing out of t a mark can be awarded f or god development

e of dat a max 3 K and Germany max 2 marks.

Quest ion Number

2 Candid

• Large agricult ural sect or/ c66% of populat ion

• Populat ion c absorbed by agricult ure

• Cli

• Ine ses

• Inadequat e port

• Del rces

• Insuf f icient power

• Slow implement at ion of economic ref orms due t o opposit ion each reason ident if ied(K shown) – max 2

applicat ion] (D shown) – 2. indust ries unempl oyment persist s ) at es may ref er t o:

in agricult ure annot be

mat e/ weat her – cycl ones and f loods are ment ioned f f icient st at e owned ent erpri

f acilit ies

ays in exploit ing nat ural resou

Give 1 mark f or

Give 1 mark f or some development of t his [ max 2

Give 1 mark f or in-dept h explanat ion [ analysis] (A shown)– max If no source B max 4

Example: ‘ insuf f icient power [ K] means t hat power hungry cannot develop very rapidly [ D] so t hat

leading t o povert y [ A] ’ .

(18)

Quest ion Number

Indica ive cont ent t Mark

3

Give 1 mark f or knowledge of Source C, as above.

rks f or explanat ion/ development of t his knowledge. re mark can be awarded f or using t he mat erial in

ent (K shown). No ref erence t o source C max. 2.

ironment al damage such and soil erosion [ K] . These make f arming more ing t o f ewer crops, povert y and st arvat ion [ 1] . ’ he omic growt h causes people t o cut down t rees [ K]

is an example of

)

Candidat es may ref er t o:

• Change in cl imat e

• Over-consumpt ion of nat ural resources

• Def orest at ion

• Soil erosion

• Inf ert ile soil

Give up t o 3 ma Wit hin t his 1 mo

Source C wit hout f urt her developm

Examples: ‘ Economic Growt h can cause env as climat e change

dif f icult [ 1] lead T need f or econ ‘

leading t o inf ert ile soil and poor f arming [ K] . ’ (This

1 + 1 more mark f or using t he source mat erial wit hout f urt her

(19)

4 Candidat es may ref er t o:

Source B:

• point ing out t hat st ruct ural f act ors are import ant as well as climat e

• inadequat e port f acilit ies, insuf f icient power supplies, lack of expl oit at ion of nat ural resources could all be caused by lack of invest ment

Source C:

• invest ment of t en result s in environment al damage

vest ment is neede ironment al

prot ect ion Source D

• Bank of Engl en invest ment as very import ant

• Invest ment f ollows low regulat ion

• Consumpt ion ma ent

Source E

• Trade l iberalisa Source F

• Invest ment in inf rast ruct ure/ social overhead capit al

• in d t o implement env

and had se

t axes, cheap labour, l ow levels of y be an alt ernat ive t o invest m

t ion as a source of growt h

Level 1 [ 1-2 marks]

Candidat es of f er so e. g.

‘ Invest ment can lead t o or ‘ Invest ment is import ant because it l eads t o more schools and hospit als being built ’ . Answers are kel y t o be very descript ive.

me relevant knowledge and applicat ion, higher economic growt h’ ,

li

Candidat es are able nal ysis. Answers t hat do not address ‘ most import ant ’ will b

reasons, e. g. ‘ invest me

suf f icient power suppli t at ion of nat ural resources. It can, h e

Answers t hat of f er posi t o be at t his level a bot t om t here may b e explanat ion is very l imi

t o of f er a

e at t his level i. e. t hey have j ust of f ered nt is import ant because it can lead t o es and t he exploi

ow ver, result in environment al damage’ . t ive/ negat ive of t he same point are likely s will t hose t hat ignore invest ment . At t he

e xt ensive ref erence t o t he sources, but t ed.

Candidat es go beyond simple anal ysis t o discuss point s relat ing t o invest ment being m ant , but do not of f er a conclusion. Answers will cont ain t w dif f erent reasons. Discussion answers t hat are en e

of t he sources will be at t his level, e. g. ‘ Invest ment is import ant because it provides capit al t o improve t he inf rast ruct ure of my count ry, but t his ca environment al damage such as pollut ion. More imp

t he right educat ion and

indust ries such as servic st ment t o benef it my count ry’

ost import o or more

t ir ly one-sided or make lit t le ref erence/ use

n lead t o

ort ant , however, is t he t raining of l abour wit h skills so t hat t hey can work in new

(20)

Level 4 Cand can of f er a c it h clear reasons. At t he t op t his will be a support ed conclusion, but e

concl w

of ‘ m p and e

could be exp

Source D, t h it al f or

economic gr rt ed in Source F where

invest ment result s in m bet t e cat ed worker

produ it y. On t he ot h e

f act t hat businesses loo

labour t oget her wit h low t axes so t hat it may be import ant t o have t hese in place bef o

however, t hat wit hout invest ment t he inf rast ruct ure will not be ready e. g. poor port

supplies. Theref ore, it i

most import ant , but not ’ .

[ 7-8 marks]

idat es onclusion w

at t he bot t om t h ill be very limit ed. They must address t he issue ort ant ’ and explain t he link bet ween invest ment ic growt h. The f ollowing is an indicat ion of what

ect ed in a bet t er answer: ‘ As can be seen in e Bank of England has seen invest ment as v owt h. This is suppo

usion ost im conom

ore schools and hospit al s leading t o s and bet t er healt h t hus increasing

er hand, several sources point t o t h k f or good inf rast ruct ure and cheap re invest ment . Bangladesh shows, f acilit ies and insuf f icient power s clear t hat invest ment is probably t he

t he only, f act or in economic growt h r edu

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Quest ion Number Indicat ive cont ent 5 Candidat es are li Source E: • $700 bill ion or developing c • t rade has he

• t rade liberalisat ion can lead t o unemployment

Source C

• growing crops f or export can lead t o soil erosion

• economic growt h leads t o over-expl oit at ion e. g. def orest at ion

Source D

• t rade makes business invest ment more mobile

Source B

• It could be argued t hat Bangladesh is an example of where t rade emphasises dependency of one sect or of t he

economy

Source A

It could be argued t hat t rade in oil has f acilit at ed Azerbaij an’ s growt h

kely t o ref er t o:

gain f rom t rade liberalisat ion - $450 billion f ount ries

lped millions out of povert y

Candidat es of f er some relevant knowledge and applicat ion, e. g. ‘ int ernat ional t rade will lead t o more import s and export s’ or ‘ int ernat ional t rade means more export s and t hus higher growt h’ . Answers are l ikel y t o be very descript ive.

Candidat es are able t o of f er anal ysis. Answers t hat do not address ‘ good met hod’ will be at t his level i. e. t hey have j ust of f ered reasons, e. g. ‘ int ernat ional t rade leads t o economic growt h

rt s result s in more employment and higher

inc vironment al damage’ . At t he

bot t om t here may be ext ensive ref erence t o t he sources (Source E), but expl anat ion is very limit ed.

because more expo

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s go beyond simple anal ysis t o discuss point s relat ing t o int ernat ional t rade being most import ant , but do

f erence/ use of hus increased out put , sales and revenue. The OECD st at e t hat developing count ries have made gains of $450bn.

s it is a good way t o promot e economic growt h. There are, however, some negat ive ef f ect s as t rade can lead Candidat e

not of f er a conclusion. Answers will cont ain t wo or more dif f erent reasons. Discussion answers t hat consider ‘ ext ent ’ or ‘ good met hod’ , but not bot h or make lit t le re

t he sources will be at t his level e. g. ‘ t rade all ows my count ry t o specialise in t hose goods it has an advant age in t

leading t o This show

t o count ries like Bangladesh relying t oo heavily on one sect or’ .

Level 4 [ 7-8- marks]

Can er a conclusion wit h clear reasons. At t he be a support ed conclusion, but at t he bot t om t he conclusion will be very limit ed. They must address t he issue

t ent . . . . good met hod’ in l inking t rade wit h growt h. The f ollowing is an indicat ion of what could be expect ed in a

y 200% in t more and import machinery f or our f act ories t hus leading t o economic growt h. As Source E st at es t here are l arge gains

e and t his leads t o a reduct ion in povert y’ . didat es can of f

t op t his will of ‘ t he ex

bet t er answer: ‘ My count ry’ s t rade has increased b t he last t went y years. This has all owed us t o expor goods

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Quest ion Number Indicat ive cont ent 6 r

• If t heir count ry is shown t hey may make direct ref erence f

ved t he

Source C

• Economic growt h causes environment al problems and is t heref ore not necessarily good f or a count ry

Source D

• Candidat es may pick up on t he idea t hat wit hout t he correct st ruct ure economic growt h may not be successf ul. Source E

• Economic growt h t hrough t rade leads t o large gains Source F

Benef it s include:

• Creat es new j obs

• Higher st andard of living result ing f rom higher real incomes

• Increased invest ment available f or hospit als, schools, roads et c.

• More t ax revenue f or government s

• Rising prof it s of companies can lead t o more invest ment in business

Rising wealt h may reduce povert y Cost s include:

• Environment al damage caused by pollut ion

• Growt h may lead t o rising inequalit y in societ y on of scarce resources

inf l at ion

Candidat es are likel y t o ref er t o bot h t he sources and t o t hei knowledge of t heir count ry.

Source A

or t hey may compare t heir count ry t o one or more o t hose shown

Source B

• They may point t o t he f act t hat 5% growt h has not sol Bangladesh’ s problems. This may lead t hem t o assume t hat rapid growt h is necessary or would not be solut ion.

• Over- expl oit at i

• Risk of demand-pull

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Level

Mark Descript or

f er some relevant knowledge and applicat ion, e. g. ‘ Ra

higher

Candidat es of

pid economic growt h is good because it leads t o more j obs and living st andards’ . Answers are likely t o be very descript ive.

Candid t o of f er anal ysis. Answers t hat do not ref er t o ‘ your count ry’ will be at t his level i. e. t hey have j ust of f ered reasons, e. g. ‘ Rapid economic growt h creat es new j obs, bet t er edu rvices and raises t he st andard of living of people. It would t heref ore benef it my count ry. On t he ot her hand it c l

pollut io

at es are able

cat ion and healt h se

an ead t o environment al problems such as soil erosion and n’ .

Can

ela et her ‘ rapid economic growt h would be good’ , t of f er a concl usion. Answers wil l cont ain t wo or

rent reasons and will make some ref erence t o ‘ your u

e. g y because it

oll ut ion f rom increased t raf f ic and indust rial wast e t he over-exploit at ion of scarce resources leading t o y count ry st art ing t o run out of essent ial minerals. This une

nd increased povert y and crime’ .

didat es go beyond simple anal ysis t o discuss point s t ing t o wh

r

but do no more dif f e

co nt ry’ . Discussion answers t hat are ent irely one-sided or make l it t le ref erence/ use of t he sources will be at t his level,

. ‘ rapid economic growt h is bad f or my count r leads t o p

caused by m

means t hat people empl oyed in t hese indust ries are becoming mployed and cannot f ind new j obs leading t o social unrest a

n he

m t he n will be very limit ed. They must address t he issue

or your count ry’ . Expect clear ref erence t o a ot h use of t he sources and t heir own

e f ollowing is an indicat ion of what could be er answer: ‘ My count ry needs rapid

ugh, like Bangladesh, we have t oo many people involved w we need t o f ind t he environment . Economic growt h would enable us

alt h services and improve e product ivit y. To do t his we need t o at t ract f oreign

int o our businesses. If we don’ t grow by more t han count ries, as

pid economic it e possible

Ca didat es can of f er a conclusion wit h clear reasons. At t t op t his will be a support ed conclusion, but at t he bot t o conclusio

of ‘ good f count ry wit h b knowledge. Th expect ed in a bet t

economic growt h because we are poor wit h lot s of people in povert y. Increased t rade is one possible way of achieving t his alt ho

in subsist ence agricult ure. If we are t o gro

crops t hat can be sold on t he world market , but wit hout damaging

t o develop bet t er educat ion and he t h

invest ment

5% we are likely t o f all f urt her behind similar shown in Source A. I consider, t heref ore, t hat ra growt h is essent ial f or our count ry desp

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