IGCSE

ECONOMICS
STRUCTURED QUESTIONS
ESSENTIAL GUIDE
______________________________________________________________
UPATED TO 2023-2025 SYLLABUS
ASSESSMENT OBJECTIVES
The assessment objectives (AOs) are:

AO1 Knowledge and understanding

• show knowledge and understanding of economic definitions, formulas, concepts and theories
• use economic terminology.

AO2 Analysis
• select, organise and interpret data
• use economic information and data to recognise patterns and to deduce relationships
• apply economic analysis to written, numerical, diagrammatic and graphical data
• analyse economic issues and situations, identifying and developing links.

AO3 Evaluation
• evaluate economic information and data
• distinguish between economic analysis and unreasoned statements
• recognise the uncertainties of the outcomes of economic decisions and events
• communicate economic thinking in a logical manner.

AO1
15%

Percentage in Syllabus
[Link]
 2-Mark Questions

State
（陈述）

Express in clear terms, not

longer than a sentence.

给出简单术语答案，不超过一个句。

[Link]
 DATE _____________

Sample Question 1

State two functions of local government

(2)

A function Providing public goods

____________________________________________
(1st fact)
____________________________________________

A function Supporting local businesses

____________________________________________
(2nd fact)
____________________________________________

Answer Checklist

Did you include:

❑ Two facts?

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Sample Question 2

State two reasons for levying taxes.

(2)

A reason Raise tax revenue

____________________________________________
(1st fact)
____________________________________________

A reason Discourage consumption of demerit goods

____________________________________________
(2nd fact)
____________________________________________

Answer Checklist

Did you include:

❑ Two facts?

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Sample Question 3

State two benefits a country may gain from immigration

(2)

A benefit Larger labour force

____________________________________________
(1st fact)
____________________________________________

A benefit Higher demand

____________________________________________
(2nd fact)
____________________________________________

Answer Checklist

Did you include:

❑ Two facts?

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Question 1

State two benefits of free trade

(2)
1st fact One benefit is _________________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another benefit is ______________________________________________

______________________________________________________________
______________________________________________________________

Question 2

State two objectives of firms.

(2)
1st fact One objective is ________________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another objective is ____________________________________________

______________________________________________________________
______________________________________________________________

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Question 3

State two sectors, other than the primary sector in an economy.

(2)
1st fact One sector is __________________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another sector is _______________________________________________

______________________________________________________________
______________________________________________________________

Question 4

State two functions of a commercial bank.

(2)
1st fact One function is _________________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another function is _____________________________________________

______________________________________________________________
______________________________________________________________

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 MARK SCHEME

Question 1

State two benefits of free trade

(2)
Any two from:
Increase choices, more competition, lower prices, more specialisation

Question 2

State two objectives of firms.

(2)
Any two from:
Survival, social welfare, profit maximization, and growth

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 MARK SCHEME

Question 3

State two sectors, other than the primary sector in an economy.

(2)
Any two from:
Secondary sector, tertiary sector

Question 4

State two functions of a commercial bank.

(2)
Any two from:
Lending, accepting deposits, allowing customers to make payments, looking after
valuables, giving financial advice, providing insurance, exchanging foreign currency

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
Feedback and Reflection

W
What went well

I
Improvement

N
Next Steps

S
Student Response

[Link]
2-Mark Questions

Identify
（鉴定）

Name/select/recognise

命名/选择/识别

[Link]
 DATE _____________

Sample Question 1

Identify two ways a government could reduce income

inequality.
(2)

A way (1st Progressive tax

____________________________________________
fact)
____________________________________________

A way (2nd State benefits

____________________________________________
fact)
____________________________________________

Answer Checklist

Did you include:

❑ Two facts?

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Sample Question 2

Identify two functions of money.

(2)

A function Medium of exchange

____________________________________________
(1st fact)
____________________________________________

A function Store of value

____________________________________________
(2nd fact)
____________________________________________

Answer Checklist

Did you include:

❑ Two facts?

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Sample Question 3

Identify two government economic aims.

(2)

An aim Economic growth

____________________________________________
(1st fact)
____________________________________________

An aim Low inflation

____________________________________________
(2nd fact)
____________________________________________

Answer Checklist

Did you include:

❑ Two facts?

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Sample Question 3

Identify two government economic aims.

(2)

An aim Economic growth

____________________________________________
(1st fact)
____________________________________________

An aim Low inflation

____________________________________________
(2nd fact)
____________________________________________

Answer Checklist

Did you include:

❑ Two facts?

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Question 1

Identify two resource allocation decisions.

(2)
1st fact One decision is _________________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another decision is _____________________________________________

______________________________________________________________
______________________________________________________________

Question 2

Identify two determinants of price elasticity of supply.

(2)
1st fact One determinant is _____________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another determinant is __________________________________________

______________________________________________________________
______________________________________________________________

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Question 3

Identify two risks that entrepreneurs have to bear.

(2)
1st fact One risk is _____________________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another risk is _________________________________________________

______________________________________________________________
______________________________________________________________

Question 4

Identify two influences on a country’s birth rate.

(2)
1st fact One influence is ________________________________________________
______________________________________________________________
______________________________________________________________

2nd fact Another influence is _____________________________________________

______________________________________________________________
______________________________________________________________

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 MARK SCHEME

Question 1

Identify two resource allocation decisions.

(2)
Any two from:
What to produce, how to produce, for whom to produce

Question 2

Identify two determinants of price elasticity of supply.

(2)
Any two from:
Ability to store, level of stocks, perishability, production time, level of spare capacity,
time period under consideration (short run/long run)

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 MARK SCHEME

Question 3

Identify two risks that entrepreneurs have to bear.

(2)
Any two from:
A rival bringing out a better product, demand falls, costs rising, risk of failure/losses /
bankruptcy

Question 2

Identify two influences on a country’s birth rate.

(2)
Any two from:
Education levels, income levels, availability of contraceptives/ family planning,
proportion of women in the labour force, infant mortality rate, state support,
availability of health care, availability of maternity/paternity leave, availability of
child benefits

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
Feedback and Reflection

W
What went well

I
Improvement

N
Next Steps

S
Student Response

[Link]
 2-Mark Questions

Define
（定义）

Give a precise meaning.

给出一个精确的含义。

[Link]
 DATE _____________

Sample Question 1

Define a free good.

(2)
Meaning No opportunity cost (1) a good that takes no
____________________________________________
____________________________________________
resources to produce / abundant in supply (1)

Answer Checklist

Did you include:

❑ Two key points of the term?

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Sample Question 2

Define an indirect tax.

(2)
Meaning A tax on spending/ goods and services (1) the burden of
____________________________________________
the tax can passed on to someone else (1) example (1)
____________________________________________

Answer Checklist

Did you include:

❑ Two key points of the term?

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Sample Question 3

Define market failure.

(2)
Meaning Where the market forces of demand and supply (1) do not
____________________________________________
achieve efficiency (1) example of external cost (1)
____________________________________________

Answer Checklist

Did you include:

❑ Two key points of the term?

AO1 (2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Question 1

Define division of labour.

(2)
Meaning Division of labour is _____________________________________________
______________________________________________________________
______________________________________________________________

Question 2

Define a capital good.

(2)
Meaning A capital good is ________________________________________________
______________________________________________________________
______________________________________________________________

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 DATE _____________

Question 3

Define ‘capital intensive’.

(2)
Meaning Capital intensive is _____________________________________________
______________________________________________________________
______________________________________________________________

Question 4

Define ‘complements’.
(2)
Meaning Complements is ________________________________________________
______________________________________________________________
______________________________________________________________

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 MARK SCHEME

Question 1

Define division of labour.

(2)
Workers specializing (1) in one particular task/ repeating the same task (1)
Breaking down production into different/separate tasks (1) using different workers
for the different tasks (1)

Question 2

Define a capital good.

(2)
Human-made good (1) used in production / used to produce other goods or services
(1)

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
 MARK SCHEME

Question 3

Define ‘capital intensive’.

(2)
A production method that uses a large proportion of capital (1) relative to labour (1).

Question 4

Define ‘complements’.
(2)
Two products that are used / consumed together (1) as demand for one product
increases, demand for the other product increases (1) e.g. laptops and printers or
coffee and milk (1).

AO1
(2 marks)
Recall, select and communicate knowledge of
economic terms, concepts and issues.

[Link]
Feedback and Reflection

W
What went well

I
Improvement

N
Next Steps

S
Student Response

[Link]
 4-Mark Questions

Explain
（解释）

Give a statement of fact, with

further expansion points. The
explanation should demonstrate
cause and effect /why the point
matters in the context of the
question.
给出一个事实陈述，并附上进一步的
扩展点。解释应当展示因果关系/说明
该点在问题下的重要性。

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 DATE _____________

Sample Question 1

Explain two advantages to an economy of ending child

labour.

(4)
1. One benefit (a fact) 优势 3. Second benefit (a fact) 优势

One advantage is enable children to be educated.

Therefore, increasing their skills and productivity.
Another advantage reduce poverty. This is
because children will later gain higher paid job.

4. Explanation of the
benefit identified.
2. Explanation of the
扩展事实陈述
benefit identified.
扩展事实陈述

Answer Checklist

Did you include:

❑ Two benefits (2 facts)?

❑ Because…therefore/so/as . . . (explanations)?

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 DATE _____________

Sample Question 2

Explain two influences on demand for factors of production.

(4)
2. Explanation of the
influence identified.
1. One influence (a fact)
扩展事实陈述
因素

One influence is the demand for the product

produced. A rise in demand for the product will
increase demand for the factors of production
used to make it because of derived demand.
Another influence is the price of the factor itself.
If the price of the factor decreases, firms are
likely to demand more of it as it becomes
cheaper to employ.
3. Second influence (a fact) 因素
4. Explanation of the
influence identified.
Answer Checklist 扩展事实陈述

Did you include:

❑ Two influences (2 facts)?

❑ Because…therefore/so/as . . . (explanations)?

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 DATE _____________

Sample Question 3

Explain two characteristics of money.

(4)
2. Explanation of the
characteristic identified.
1. One characteristic (a fact)
扩展事实陈述
特征

One characteristic is acceptable, meaning people

are willing to accept it as payment. Another
characteristic is portable. Money is easy to carry,
making it convenient for people to use in
transactions.

3. Second characteristic (a fact) 4. Explanation of the

特征 characteristic identified.
扩展事实陈述

Answer Checklist

Did you include:

❑ Two characteristics (2 facts)?

❑ Because…therefore/so/as . . . (explanations)?

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 DATE _____________

Question 1

Explain two reasons why household borrowing may increase.

(4)

A reason ______________________________________________________________
(1st fact) ______________________________________________________________
______________________________________________________________

Explain (1st ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

A reason ______________________________________________________________
(2nd fact) ______________________________________________________________
______________________________________________________________

Explain (2nd ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

Answer Checklist

Did you include:

❑ Two reasons (2 facts)?

❑ Because…therefore/so/as . . . (2 explanations)?

AO2 (4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 MARK SCHEME

Question 1

Explain two reasons why household borrowing may increase.

(4)

• The rate of interest may fall (1) making it cheaper to borrow (1).

• Incomes may fall / prices may rise / inflation (1) so people may borrow to purchase
basic necessities (1).

• People may become more optimistic about the future (1) more confident that they
will repay loans (1).

• The price of housing may fall (1) encouraging people to take out mortgages (1).
• Increase in family size (1) creates a greater need to borrow to support more
children (1)

• The cost of health care/education may increase (1) requiring people to pay more
for the services (1).

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 DATE _____________

Question 2

Explain two reasons why the supply of a product may be price-

inelastic.
(4)

A benefit ______________________________________________________________
(1st fact) ______________________________________________________________
______________________________________________________________

Explain (1st ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

A benefit ______________________________________________________________
(2nd fact) ______________________________________________________________
______________________________________________________________

Explain (2nd ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

Answer Checklist

Did you include:

❑ Two reasons (2 facts)?

❑ Because…therefore/so/as . . . (2 explanations)?

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 MARK SCHEME

Question 2

Explain two reasons why the supply of a product may be price-

inelastic.
(4)

• It may take time to produce the product (1) this means that it will take time to
adjust supply in response to a change in price / example of a product that it takes
time to produce (1).

• It may not be possible to store the product (1) this means that it cannot be taken
out of storage when price rises / products cannot be put into storage when price falls
(1).

• It may be costly to adjust supply (1) e.g. it might be necessary to build new
factories and this may discourage firms from adjusting supply (1).

• The supply of a natural resource may become limited (1) e.g. gold maybe close to
depletion (1)

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 DATE _____________

Question 3

Explain two measures of comparative living standards.

(4)

A reason ______________________________________________________________
(1st fact) ______________________________________________________________
______________________________________________________________

Explain (1st ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

A reason ______________________________________________________________
(2nd fact) ______________________________________________________________
______________________________________________________________

Explain (2nd ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

Answer Checklist

Did you include:

❑ Two measures (2 facts)?

❑ Because…therefore/so/as . . . (2 explanations)?

AO2 (4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 MARK SCHEME

Question 3

Explain two measures of comparative living standards.

(4)

• GDP per head (1) GDP divided by population/a measure based on income (1).

• The Human Development Index (1) takes into account income, education and life
expectancy (1).

• Individual indicators e.g. number of doctors per head of the population (1) more
doctors per head of the population may indicate better health standards (1).

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 DATE _____________

Question 4

Explain two reasons why tax revenue may fall.

(4)

A reason ______________________________________________________________
(1st fact) ______________________________________________________________
______________________________________________________________

Explain (1st ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

A reason ______________________________________________________________
(2nd fact) ______________________________________________________________
______________________________________________________________

Explain (2nd ______________________________________________________________

fact) ______________________________________________________________
______________________________________________________________

Answer Checklist

Did you include:

❑ Two reasons (2 facts)?

❑ Because…therefore/so/as . . . (2 explanations)?

AO2 (4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 MARK SCHEME

Question 4

Explain two reasons why tax revenue may fall.

(4)

• Tax rates may be reduced (1) lowering e.g. VAT rates/income tax rates may be
reduced/in the short run reducing amount that can be earned (1).

• Unemployment may increase (1) reducing income tax revenue/indirect tax revenue
(1).

• Firms’ profits may fall (1) lowering corporation tax revenue (1).

• Population may decline (1) there will be fewer tax payers reducing revenue from all
tax payers (1).

• Tax evasion may increase (1) people may e.g. not declare income earned (1).

• Income may fall / output may fall (1) reducing income tax revenue (1).

• Consumption may fall (1) reducing indirect tax / VAT / GST revenue (1)

AO2
(4 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Feedback and Reflection

W
What went well

I
Improvement

N
Next Steps

S
Student Response

[Link]
 6-Mark Questions

Analyse
（分析）

Examine in detail to show

meaning, identify the elements
and their relationships, and
build a chain of reasoning.

详细审查以展示含义，识别各个要素
及其关系，并建立逻辑链。

[Link]
DATE _____________

Sample Question 1

Analyse how an increase in exports could increase a

country’s employment rate and inflation rate.
(6)

Higher
Firms increase Reduce
Higher exports aggregate
output unemployment
demand

Higher demand Increase cost of Cost-push

Higher exports
for workers production inflation

An increase in exports may mean a higher total

demand (1). Higher demand may encourage firms to
increase their output (1) to produce more products
firms may take on more workers (1) reducing cyclical
unemployment (1).

Higher demand for workers may push up wages (1).

This increases costs of production (1) causing cost-
push inflation (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Sample Question 2

Analyse why doctors are paid more than nurses.

(6)

Reduces
Need higher Take longer to supply of
qualifications train Higher wages
doctor

Higher demand
More skilled More productive Higher wages
for doctor

Doctors need higher qualifications (1) take longer to

train (1) thus reduces supply (1) which increases
wages.

Doctors are more skilled (1) and more productive (1).

This leads to higher demand for doctor (1) which
pushes up the wages.

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Sample Question 3

Analyse how a fall in unemployment may increase

inflation.
(6)

Increase Higher
Lower Increase Demand
unemployment consumer aggregate
income pull inflation
spending demand

Higher cost
Lower Shortage of Raise Cost-push
unemployment of
workers wages inflation
production

A fall in unemployment may increase incomes (1) this

may increase consumer spending (1) increasing total
(aggregate) demand (1) causing demand-pull inflation
(1).

A fall in unemployment may result in a shortage of

workers (1) this may raise wages (1) increasing firms’
costs of production (1) causing cost-push inflation (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Question 1

Analyse how a government could reduce meat consumption.

(6)

Reduce
meat
consumption

Reduce
meat
consumption

Reduce
meat
consumption

1st chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

2nd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

3rd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ Two/Three reason (2/3 facts)?

❑ Because…therefore/so/as/furthermore . . . (2/3 chains)?

Feedback and Reflection

[Link]
 MARK SCHEME

Question 1

Analyse how a government could reduce meat consumption.

(6)

It could ban meat consumption (1) making it illegal to eat meat/backing up the ban
by law (1).

It could introduce regulations (1) making it more difficult to buy meat (1) increase
the costs of meat producers (1).

It could place a tax on meat consumption (1) raising its price (1) reducing demand for
meat (1).

It could place a tariff / quota on meat imports (1) to limit the amount imported (1).

It could provide information/advertise about the harmful effects of eating meat /

cruelty to animals in meat production (1) reducing demand (1).

It could subsidise / reduce the tax on meat substitutes e.g. fish, vegetables (1).
Encouraginghouseholds to switch demand from meat to vegetables (1).

If the government is a meat producer (1) it could control the price (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Question 2

Analyse why the wages of workers in a particular occupation

may fall.
(6)

Fall in wages

Fall in wages

Fall in wages

1st chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

2nd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

3rd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ Two/Three reason (2/3 facts)?

❑ Because…therefore/so/as/furthermore . . . (2/3 chains)?

Feedback and Reflection

[Link]
 MARK SCHEME

Question 2

Analyse why the wages of workers in a particular occupation

may fall.
(6)

Demand for the workers may fall (1) reasons e.g. demand for the good or service
they provide falls/productivity falls/replaced by capital equipment / technological
advances /obsolete skills (up to 2) this may be shown on a diagram (1).

Supply of the workers may increase (1) this may be shown on a diagram (1) reasons
e.g. immigration/rise in retirement age/increased participation of women in the
labour force (up to 2).

Trade union power may fall (1) due to e.g. fall in membership (1) bargaining strength
may decline (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Question 3

Analyse how a fall in unemployment can increase tax revenue.

(6)

Increase
Fall in
unemployment tax
revenue

Increase
Fall in
unemployment tax
revenue

Increase
Fall in
unemployment tax
revenue

1st chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

2nd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

3rd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ Two/Three reason (2/3 facts)?

❑ Because…therefore/so/as/furthermore . . . (2/3 chains)?

Feedback and Reflection

[Link]
 MARK SCHEME

Question 3

Analyse how a fall in unemployment can increase tax revenue.

(6)

A fall in unemployment will increase income (1) more people working and people
earning higher wages (1) this will increase income tax revenue (1).

Spending will increase (1) more products will be purchased (1) which will increase
indirect taxes (1) example (1).

Higher spending will increase firms’ revenue (1) this may increase firms’ profits (1)
which will increase corporation/direct tax revenue (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Question 4

Analyse how fiscal policy could reduce the inflation rate.

(6)

Fiscal Reduce
policy inflation

Fiscal Reduce
policy inflation

Fiscal Reduce
policy inflation

1st chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

2nd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

3rd chain __________________________________________________________

__________________________________________________________
__________________________________________________________
__________________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ Two/Three reason (2/3 facts)?

❑ Because…therefore/so/as/furthermore . . . (2/3 chains)?

Feedback and Reflection

[Link]
 MARK SCHEME

Question 4

Analyse how fiscal policy could reduce the inflation rate.

(6)

Contractionary/deflationary fiscal policy could be used (1).

A reduction in government spending (1) may reduce total demand (1) reducing
demand-pull inflation (1)

An increase in income tax (1) would reduce disposable income (1) this may lower
consumer spending (1) reducing total demand (1) lowering demand-pull inflation (1)

Increased in spending on education/healthcare (1) may raise productivity (1) lower

costs (1) and reduce cost-push inflation (1)

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
 6-Mark Questions

Diagram
（图表）

An accurate label diagram with

explanation.

使用准确的标签图, 并附上解释。

[Link]
DATE _____________

Sample Question 1

Analyse, using a demand and supply diagram, how a greater

awareness of the health benefits of eating fruit will affect the
market for fruit. (6)

Up to 4 marks for D & S diagram:

Axes correctly labelled–price and
quantity or p and q (1).
Original demand and supply curves
correctly labelled (1).
New demand curve shifted to the right
(1).
Equilibriums–shown by lines P1 and Q1
and P2 and Q2 or
equilibrium points E1 and E2 (1).

Written analysis
Greater awareness of health benefits will encourage more people
to eat / demand fruit (1), therefore the demand curve will shift to the right. Hence,
equilibrium price and quantity rise (1).

Up to 2 marks for written analysis

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Sample Question 2

Analyse, using a production possibility curve, the effect of

advances in technology.
(6)

Up to 4 marks for PPC diagram:

Axes correctly labelled (1).
Initial curve/point drawn (1).
New curve/ point drawn (1).
Movement of the production point/curve
indicated by arrow or lettering (1).

Written analysis
Advances in technology increase productivity level (1) more goods and services
can be produced (1) results in (potential) economic growth (1)

Up to 2 marks for written analysis

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
DATE _____________

Question 1

Analyse, using a demand and supply diagram, how a rise in

income may affect the market for gold.
(6)

Diagram

Written __________________________________________________________
Analysis __________________________________________________________
__________________________________________________________
__________________________________________________________
______________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
MARK SCHEME

Question 1

Analyse, using a demand and supply diagram, how a rise in

income may affect the market for gold.
(6)

Diagram

Written An increase in income will increase people’s ability to buy gold/raise

Analysis purchasing power (1). Price will rise/quantity traded will rise (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ correctly labelled diagram?

❑ written analysis?

Feedback and Reflection

[Link]
DATE _____________

Question 2

Analyse, using a demand and supply diagram, how bad

weather is likely to affect the market for broccoli.
(6)

Diagram

Written __________________________________________________________
Analysis __________________________________________________________
__________________________________________________________
__________________________________________________________
______________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
MARK SCHEME

Question 2

Analyse, using a demand and supply diagram, how bad

weather is likely to affect the market for broccoli. [6]
(6)

Diagram

Written Bad weather will destroy crops / reduce supply of broccoli / quantity
Analysis traded falls (1).
Weather is an important influence on the supply of agricultural
products / cost of producing broccoli will rise / price will rise (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ correctly labelled diagram?

❑ written analysis?

Feedback and Reflection

[Link]
DATE _____________

Question 3

Analyse, using a production possibility curve (PPC) diagram,

the effects of a decrease in the quantity of capital goods in an
economy. (6)
Diagram

Written __________________________________________________________
Analysis __________________________________________________________
__________________________________________________________
__________________________________________________________
______________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.
MARK SCHEME

Question 3

Analyse, using a production possibility curve (PPC) diagram,

the effects of a decrease in the quantity of capital goods in an
economy. (6)
Diagram

Written Capital goods are a resource / investment used to produce other goods
Analysis (1). Fewer capital goods / factors of production reduce potential output
/ productive capacity/ less goods and services produced (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ correctly labelled diagram?

❑ written analysis?

Feedback and Reflection

[Link]
DATE _____________

Question 4

Analyse, using a production possibility curve (PPC) diagram,

the effect of an increase in unemployment on an economy.
(6)

Diagram

Written __________________________________________________________
Analysis __________________________________________________________
__________________________________________________________
__________________________________________________________
______________________________________________________

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
MARK SCHEME

Question 4

Analyse, using a production possibility curve (PPC) diagram,

the effect of an increase in unemployment on an economy.
(6)

Diagram

Written Unemployment means resources are not used (1) there is inefficiency
Analysis (1) reduces output/GDP / causes a recession (1).

AO2
(6 marks)
Demonstrate understanding and apply economic knowledge using
appropriate terms, concepts, theories and calculations effectively in
specific contexts.

[Link]
Answer Checklist

Did you include:

❑ correctly labelled diagram?

❑ written analysis?

Feedback and Reflection

[Link]
 8-Mark Questions

Discuss
（讨论是否）

Presenting both sides of the

argument, considering different
viewpoints and factors.

提出双方面的论点，考虑不同的观点和因素。

[Link]
Level Descriptors

[Link]
DATE _____________

Sample Question 1

Discuss whether or not tertiary sector workers are paid

more than primary sector workers.
(6)

1. Arguments for

Tertiary sector workers are paid more than primary sector workers
because workers in this sector may be more skilled / qualified than
primary sector worker (1), therefore they are more productive (1).
The tertiary products may have higher value added and demand (1), so
the industries may have greater ability to pay higher wages (1).

However, some workers in tertiary sector may be in lower paid jobs e.g.,
cleaners(1) , with lower productivity(1), hence receive lower wages. On
the other hand, some primary sector products may have higher value
added e.g., oil (1) and generate higher revenue to the firms (1), , hence
workers in primary sector may be paid more than tertiary sector workers
who are in low paid jobs.

2. Arguments against

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
DATE _____________

Sample Question 1

Discuss whether or not tertiary sector workers are paid

more than primary sector workers.
(8)

1. Arguments FOR
(max 5 marks)

Tertiary sector workers are paid more than primary sector workers
because workers in this sector may be more skilled / qualified than
primary sector worker (1), therefore they are more productive (1).
The tertiary products may have higher value added and demand (1), so
the industries may have greater ability to pay higher wages (1).

However, some workers in tertiary sector may be in lower paid jobs e.g.,
cleaners(1) , with lower productivity(1), hence receive lower wages. On
the other hand, some primary sector products may have higher value
added e.g., oil (1) and generate higher revenue to the firms (1), , hence
workers in primary sector may be paid more than tertiary sector workers
who are in low paid jobs.

2. Arguments AGAINST
(max 5 marks)

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
DATE _____________

Sample Question 2

Discuss whether a rise in direct taxes will reduce economic

growth.
(8)
1. Arguments FOR
(max 5 marks)

A rise in income tax will reduce disposable income (1). This may reduce
consumer expenditure (1) lower total demand (1) reduce firms’ output (1).
A rise in income tax will reduce incentives to work (1) an increase tax
avoidance(1) therefore leaving less revenue for government spending on
e.g. health and education (1) reducing productive potential of workers (1).
A rise in corporation tax (1) will increase costs of production (1) will reduce
the profits firms can keep (1) reduce the incentive to produce (1) reduce
the funds available for investment (1) to expand output (1), thus reducing
economic growth.

However, a rise in income tax may not reduce consumer expenditure if

savings fall (1) wages increase by more than tax rise (1). A rise in income
tax may reduce spending on imports (1) this would reduce a current
account deficit (1) increase net exports (1). The extra tax revenue earned
(1) may increase government spending (1). This could offset any fall in
consumer expenditure and investment (1).

2. Arguments AGAINST
(max 5 marks)

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
DATE _____________
Question 1

Discuss whether the activities of trade unions are likely to

increase or decrease a country’s economic growth rate. [8]

Why they are likely to increase it Why they are likely to decrease it

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
MARK SCHEME
Question 1

Discuss whether the activities of trade unions are likely to

increase or decrease a country’s economic growth rate. [8]

Why they are likely to increase it Why they are likely to decrease it

Up to 5 marks for why they are likely to increase it: Up to 5 marks for why they are likely to decrease
it:
• Trade unions may cut firms’ costs of production
(1) by reducing the time and effort involved in • Trade unions may push up wages (1) higher
negotiating with workers (1) lower costs can wages will increase firms’ costs of production (1)
increase profits (1) higher profits can encourage this may encourage them to cut production (1).
expansion (1).
• Trade unions may engage in industrial action (1)
• Trade unions may push up wages (1) boosting e.g. strikes (1) this will disrupt production (1) sales
total (aggregate) demand in the economy (1) may be lost (1).

• Trade unions may help with training and • The presence of trade unions may discourage
education systems (1) such schemes may raise MNCs setting up in the country (1) MNCs
productivity (1) higher productivity can cut costs of contribute to economic growth (1).
production (1) and increase productive potential
(1).

• By promoting workers’ rights (1) trade unions

may increase the motivation of workers / workers
may gain more job satisfaction (1) which will raise
productivity (1).

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
Answer Checklist

Did you include:

❑ Arguments for? (2-3 chains)

❑ Arguments against? (2-3 chains)

Feedback and Reflection

[Link]
DATE _____________
Question 2

Discuss whether healthcare should be provided by the public

sector or private sector. [8]

Should be provided by public sector Should be provided by private sector

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
MARK SCHEME
Question 2

Discuss whether healthcare should be provided by the public

sector or private sector. [8]]

Should be provided by public sector Should be provided by private sector

Up to 5 marks for why it should be provided by the Up to 5 marks for why it should be provided by the
public sector: private sector:

• If left to market forces it will be under-consumed • The private sector will have a profit motive (1) to
(1) people do not appreciate the full benefits to produce what consumers want/to be more
themselves of healthcare (1). responsive to changes in consumer demand (1).

• Healthcare provides significant external benefits • The private sector will have competition (1) an
(1) a healthy labour force (1) will be more incentive to keep costs low (1) improve quality (1)
productive (1). Healthcare is a basic service (1) cut out unnecessary waste (1).
which the poor may not be able to afford (1).
• Some forms of medical treatment are cosmetic
• Consumers may not be adequately informed (1) more of a luxury/not a necessity (1).
about the cost of healthcare (1) may be charged
high prices by the private sector (1). • Government expenditure on healthcare involves
an opportunity cost (1) tax revenue could be used
• Profit motive of private sector (1) keeps prices for other purposes (1).
higher (1)
• The public sector may be too bureaucratic /
inefficient (1)

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
Answer Checklist

Did you include:

❑ Arguments for? (2-3 chains)

❑ Arguments against? (2-3 chains)

Feedback and Reflection

[Link]
DATE _____________
Question 3

Discuss whether a government should devalue the country’s

exchange rate. [8]

Why it should Why it should not

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
MARK SCHEME
Question 3

Discuss whether a government should devalue the country’s

exchange rate. [8]

Why it should Why it should not

Up to 5 marks for why it should: Up to 5 marks for why it should not:

Export revenue may increase (1) and import It may cause inflation (1) rise in price of finished
expenditure may fall (1) improving the current imported goods (1) rise in price of imported raw
account position/reducing a current account materials (1) higher costs of production (1) higher
deficit (1). total demand (1) because of rise in net exports (1).

May increase total demand (1) causing economic The currency may have initially been undervalued
growth (1) reducing unemployment (1). (1) there would have been upward pressure on the
exchange rate (1).
The currency may initially be overvalued (1)
foreign reserves may have to be used to buy the If a large devaluation other countries may retaliate
currency (1). (1) by putting on tariffs (1) making exports less
price competitive (1).
Some MNCs may be attracted by a lower exchange
rate (1) make exports from the country more If country is reliant upon imported raw materials
competitive (1). (1) may result in imported inflation (1) will make
exports less competitive (1).

If exports are inelastic in demand (1) export

revenue may not rise (1).

Higher demand for exports without matching

increase in production (1) can result in demand-
pull inflation (1).

May result in loss of confidence in MNCs (1)

resulting in lower FDI and economic growth (1).

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
Answer Checklist

Did you include:

❑ Arguments for? (2-3 chains)

❑ Arguments against? (2-3 chains)

Feedback and Reflection

[Link]
DATE _____________
Question 4

Discuss whether or not an increase in the top rate of income

tax will benefit an economy. [8]

Why it might Why it might not

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
MARK SCHEME
Question 4

Discuss whether or not an increase in the top rate of income

tax will benefit an economy. [8]

Why it might Why it might not

Up to 5 marks for why it might: Up to 5 marks for why it might not:

An increase in the top rate of income tax may raise The higher rate may discourage effort and
more tax revenue (1) the extra revenue may be enterprise (1) some entrepreneurs may choose to
spent on e.g. healthcare/education (1) which may leave the country (1) may discourage MNCs from
increase living standards (1). setting up in the country (1)

The tax revenue may be spent on e.g. High paid workers may reduce their working hours
infrastructure/ education (1) which may increase (1) some workers may decide not to take up the
economic growth (1). offer of a promoted job (1).

The higher rate may reduce income inequality (1) The higher rate may encourage tax evasion (1)
especially if some of the revenue is used to help reduce tax revenue (1).
the poor (1).
Higher tax rate may encourage the high paid to
seek wage rises (1) this may raise costs of
production (1) may cause cost-push inflation (1).

Reduce the disposable income of the rich (1) lower

total (aggregate) demand (1) reduce output (1).

AO3
(8 marks)
Evaluate economic information to make reasoned judgements

[Link]
Answer Checklist

Did you include:

❑ Arguments for? (2-3 chains)

❑ Arguments against? (2-3 chains)

Feedback and Reflection

[Link]
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