Cambridge International AS & A Level

ECONOMICS 9708/41
Paper 4 Data Response and Essays May/June 2024
MARK SCHEME
Maximum Mark: 60

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 May/June 2024 series for most
Cambridge IGCSE, Cambridge International A and AS Level and Cambridge Pre-U components, and some
Cambridge O Level components.

This document consists of 11 printed pages.

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Generic Marking Principles

These general marking principles must be applied by all examiners when marking candidate answers.
They should be applied alongside the specific content of the mark scheme or generic level
descriptions for a question. Each question paper and mark scheme will also comply with these
marking principles.

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

 the specific content of the mark scheme or the generic level descriptors for the question
 the specific skills defined in the mark scheme or in the generic level descriptors for the question
 the standard of response required by a candidate as exemplified by the standardisation scripts.

GENERIC MARKING PRINCIPLE 2:

Marks awarded are always whole marks (not half marks, or other fractions).

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

 marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
 marks are awarded when candidates clearly demonstrate what they know and can do
 marks are not deducted for errors
 marks are not deducted for omissions
 answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.

GENERIC MARKING PRINCIPLE 4:

Rules must be applied consistently, e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.

GENERIC MARKING PRINCIPLE 5:

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).

GENERIC MARKING PRINCIPLE 6:

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.

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Social Science-Specific Marking Principles

(for point-based marking)

1 Components using point-based marking:

 Point marking is often used to reward knowledge, understanding and application of skills.
We give credit where the candidate’s answer shows relevant knowledge, understanding
and application of skills in answering the question. We do not give credit where the answer
shows confusion.

From this it follows that we:

a DO credit answers which are worded differently from the mark scheme if they clearly
convey the same meaning (unless the mark scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they
are correct
c DO credit answers where candidates give more than one correct answer in one
prompt/numbered/scaffolded space where extended writing is required rather than list-type
answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required.
(Check for evidence it is understood and not used wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all
possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already
credited unless the language itself is being tested. This applies equally to ‘mirror
statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of
syllabus terms must allow for clear and unambiguous separation from other syllabus terms
with which they may be confused (e.g. Corrasion/Corrosion)

2 Presentation of mark scheme:

 Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
 Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
 Content in the answer column in brackets is for examiner information/context to clarify the
marking but is not required to earn the mark (except Accounting syllabuses where they
indicate negative numbers).

3 Calculation questions:
 The mark scheme will show the steps in the most likely correct method(s), the mark for
each step, the correct answer(s) and the mark for each answer
 If working/explanation is considered essential for full credit, this will be indicated in the
question paper and in the mark scheme. In all other instances, the correct answer to a
calculation should be given full credit, even if no supporting working is shown.
 Where the candidate uses a valid method which is not covered by the mark scheme,
award equivalent marks for reaching equivalent stages.
 Where an answer makes use of a candidate’s own incorrect figure from previous working,
the ‘own figure rule’ applies: full marks will be given if a correct and complete method is
used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.

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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.

Guidance on using levels-based mark schemes

Marking of work should be positive, rewarding achievement where possible, but clearly differentiating
across the whole range of marks, where appropriate.

The marker should look at the work and then make a judgement about which level statement is the
best fit. In practice, work does not always match one level statement precisely so a judgement may
need to be made between two or more level statements.

Once a best-fit level statement has been identified, use the following guidance to decide on a specific
mark:

 If the candidate’s work convincingly meets the level statement, award the highest mark.
 If the candidate’s work adequately meets the level statement, award the most appropriate mark
in the middle of the range (where middle marks are available).
 If the candidate’s work just meets the level statement, award the lowest mark.

Assessment objectives

AO1 Knowledge and understanding

 Show knowledge of syllabus content, recalling facts, formulae and definitions.
 Demonstrate understanding of syllabus content, giving appropriate explanations and examples.
 Apply knowledge and understanding to economic information using written, numerical and
diagrammatic forms.

AO2 Analysis
 Examine economic issues and relationships, using relevant economic concepts, theories and
information.
 Select, interpret and organise economic information in written, numerical and diagrammatic form.
 Use economic information to recognise patterns, relationships, causes and effects.
 Explain the impacts and consequences of changes in economic variables.

AO3 Evaluation
 Recognise assumptions and limitations of economic information and models.
 Assess economic information and the strengths and weaknesses of arguments.
 Recognise that some economic decisions involve consideration of factors such as priorities and
value judgements.
 Communicate reasoned judgements, conclusions and decisions, based on the arguments.

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Table A: AO1 Knowledge and understanding and AO2 Analysis

Use this table to give marks for each candidate response for AO1 Knowledge and understanding and
AO2 Analysis for Questions 2, 3, 4 and 5.

Level Description Marks

3  A detailed knowledge and understanding of relevant economic concepts 11–14

is included, using relevant explanations. Explanations are supported by
examples, where appropriate.

 The response clearly addresses the requirements of the question and

explains economic issues, and fully develops these explanations.

 Analysis is developed and detailed and makes accurate and relevant use
of economic concepts and theories. Where necessary, there is accurate
and relevant use of analytical tools such as diagrams and formulae, and
these are fully explained.

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

and coherent manner.

2  Knowledge and understanding of some relevant economic concepts is 6–10

included, using explanations and examples that are limited, over-
generalised or contain inaccuracies.

 The response addresses the general theme of the question and the
relevant economic issues, with limited development.

 Analysis is generally accurate with some development but little detail.

Uses analytical tools such as diagrams and formulae where necessary.
Use of these tools is partially accurate or not fully explained.

 Responses are generally logical and coherent but are sometimes lacking
in focus or organisation.

1  A small number of relevant knowledge points are included and the 1–5
response is limited by significant errors or omissions.

 The response has little relevance to the question.

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

such as diagrams and formulae, where necessary, may contain
significant errors or be omitted completely.

 Responses show limited organisation of economic ideas.

0 No creditable response. 0

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Table B: AO3 Evaluation

Use this table to give marks for each candidate response for AO3 Evaluation for Questions 2, 3, 4
and 5.

Level Description Marks

2  Provides a justified conclusion or judgement that addresses the specific 4–6

requirements of the question.

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

1  Provides a vague or general conclusion or judgement in relation to the 1–3

question.

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

supporting evidence.

0 No creditable response. 0

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Section A

Question Answer Marks

Follow the point-based marking guidance at the top of this mark scheme.

1(a) Describe what is meant by the Gini coefficient and its possible range of 3
values.
The Gini co-efficient, measures income inequality or, less commonly, wealth
distribution among a population. (1)
The co-efficient ranges from 0 (or 0%) to 1 (or 100%),(1) with 0 representing
perfect equality and 1 representing perfect inequality. (1)

1(b) Distinguish between absolute poverty and relative poverty. 3

Absolute Poverty is used to describe a condition where an individual does not

have the financial means to obtain commodities to sustain life. (1) It is
sometimes expressed as being below the ‘poverty line’ which gives a level of
income per day. (1) Accept World Bank definition of absolute poverty (1)

Relative Poverty refers to the level of income compared to income levels of

other groups within the same surroundings (1)

1(c) Consider whether Table 1.1 supports the conclusion that greater 6
inequality of incomes is linked to poor literacy ratios of females to males
and leads to greater poverty.

No apparent link to poor literacy ratios. (1) Better literacy ratios are in
countries with greater inequality of income distribution (1) Cannot determine a
cause/effect (1) Higher Gini coefficients are also in countries with a lower %
below the poverty line. (1) No link to absolute poverty. (1) cannot tell about
relative poverty-no information (1)
Up to 2 marks for correct use of data

1(d) Use one example of a supply-side policy and one example of a fiscal 8
policy to assess how a government might be able to achieve greater
equality in the distribution of income.

Fiscal policy
Correct example (1) development (2) Link to equality (1)

Supply-side policy
Correct example (1) development (2) Link to equality (1)

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Section B

Question Answer Marks

EITHER

2 The long-term equilibrium position in perfect competition is frequently 20

used to illustrate efficient resource allocation in a free market economy.

Explain why this is so and consider what prevents efficiency from being
achieved.

Use Table A: AO1 Knowledge and understanding and AO2 Analysis and
Table B: AO3 Evaluation to mark candidate responses to this question.

AO1 and AO2 out of 14 marks.

AO3 out of 6 marks.

Indicative content
Responses may include:
AO1 Knowledge and understanding and AO2 Analysis
Explanation of allocative and productive efficiency.
Diagram and/or explanation of the long term equilibrium in perfect competition

Efficiency may not be achieved because of

 Market failure, explained by reference to possible excessive profits, the
need for very large investments, the existence of externalities, merit
goods and of the need for public goods.
 Government intervention can help overcome this by regulation, taxation,
subsides, or ownership aimed at achieving productive and allocative
efficiency.

AO3 Evaluation (max 6 marks)

 The concepts of allocative and productive efficiency are mainly theoretical
and rest upon fine calculations of marginal changes or precise allocations
of costs.
 Government intervention in the production of a good or service does not
necessarily achieve productive or allocative efficiency – there may be
government failure.

AO1 Knowledge and understanding and AO2 Analysis 14

AO3 Evaluation 6

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Question Answer Marks

OR

3 With the help of an indifference curve diagram, assess the extent to 20

which a rise in price would affect the demand for a normal good
differently from the demand for a Giffen good.

Use Table A: AO1 Knowledge and understanding and AO2 Analysis and
Table B: AO3 Evaluation to mark candidate responses to this question.

AO1 and AO2 out of 14 marks.

AO3 out of 6 marks.

Indicative content
Responses may include:
AO1 Knowledge and understanding and AO2 Analysis
 Diagram showing Indifference curves, budget lines and price lines.
 Changes in budget lines representing a rise in price.
 Diagrams of resultant path of consumption showing differences in
substitution and income effects for normal and Giffen goods.
 Comment on changes in overall demand based on changes in income
and substitution effects.
 Up to Level 2 only if no diagram.

AO3 Evaluation (max 6 marks)

 Comment on extent of changes would vary depending on the price
elasticity of demand a
 It would also depend on the slope of the indifference curve and the
marginal rate of substitution.

AO1 Knowledge and understanding and AO2 Analysis 14

AO3 Evaluation 6

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Section C

Question Answer Marks

EITHER

4 In many countries increased government spending is regarded as a 20

cause of economic growth. It is sensible, therefore, for a government to
spend more to increase economic growth as it is good for its country.

To what extent do you agree with this argument?

Use Table A: AO1 Knowledge and understanding and AO2 Analysis and
Table B: AO3 Evaluation to mark candidate responses to this question.

AO1 and AO2 out of 14 marks.

AO3 out of 6 marks.

Indicative content
Responses may include:

AO1 Knowledge and understanding and AO2 Analysis

 Comment on the meaning of economic growth and its measurement and
a discussion on the effect of increased government spending. Extra
government spending should increase total demand by consumers and
businesses, which could allow investment, research, further production
and economic growth.
 Distinguish between actual and potential growth
 Reference to the multiplier.
 However, if there is limited spare productive capacity, extra spending
might not result in further output but in rising prices, or increased imports
with consequent effects on the balance of payments and long-term
international competitiveness.
 Also depends on the amount of capital, education and skills of work-force,
size of work-force, availability of resources. The ability to combine the
factors of production. Access to finance, types of business structure
available FDI. Access to new technology.

AO3 Evaluation (max 6 marks)

 Some evaluation would be included in the above discussion. For the
evaluation marks there should be a recognition of both sides of the
argument and a final conclusion as to which is dominant.
 Issues may include higher prices; potential for income inequality;
environment degradation; over consumption of scarce resources.

AO1 Knowledge and understanding and AO2 Analysis 14

AO3 Evaluation 6

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Question Answer Marks

OR

5 National income statistics are often used as a measure of the standard 20

of living.

Consider to what extent national income statistics can be used to

compare the standard of living between low-incomes and high-income
and countries.

Use Table A: AO1 Knowledge and understanding and AO2 Analysis and
Table B: AO3 Evaluation to mark candidate responses to this question.

AO1 and AO2 out of 14 marks.

AO3 out of 6 marks.

Indicative content
Responses may include:

AO1 Knowledge and understanding and AO2 Analysis

 Definition of standard of living

 Distinction between high/low income countries eg per capita income
 The answer should provide reasons for the difficulties of comparison of
different countries due to culture, climate, subsistence sector, informal
economy, difficulty of data collection, distribution of income, exchange
rates, purchasing power.
Comment on which measures of national income should be used.

AO3 Evaluation (max 6 marks)

Assessment of the link between using national income figures and the
standard of living.
Alternative measures to develop the extent national income statistics can be
used in relation to low/high income and countries

AO1 Knowledge and understanding and AO2 Analysis 14

AO3 Evaluation 6

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