Marking Schemes for IGCSE Economics

Can you give me information about marking schemes for IGCSE Economics examination in a PDF file format ?

[Kiran Chandar]

Here I am giving you information about marking schemes for IGCSE Economics examination in a PDF file attached with it /


IGCSE Economics
Paper 1 (45 mins)
30 multiple-choice items (all questions to be answered).


Paper 2 (2 hours)
Structured questions.
Candidates must answer Section A and three questions in Section B.


Paper 3 (1 hour 30 minutes)
A variety of questions which test enquiry skills.


1 (a) Economic growth:
• an increase in the total output of goods and services in an economy over a period of
time
• an increase in national income
• an increase in real Gross Domestic Product (GDP)
• an increase in the productive capacity/potential of an economy. [2]


(b) Profit maximisation:
• profit is the reward to business owners or entrepreneurs
• for taking the risk of setting up a firm
• a firm which does not make a profit may be forced to close down
• retained profit is an important source of finance for firms. [4]


(c) Importance of bank lending by commercial banks:
• bank lending in China up by 34% in 2009
• idea of greater liquidity in the banking system
• this will enable firms and private individuals to finance expenditure more easily
• this will lead to higher employment and incomes
• but there are potential problems – it could be inflationary and/or lead to an increase in
imports, affecting the balance of payments
• limited funds will involve an opportunity cost.


A maximum of 4 marks if only positive aspects are described. [6]
(d) Potential advantages:
• a rise in national output; more goods and services produced
• can lead to a rise in standards of living.
Potential disadvantages:
• can cause external costs, such as pollution
• could reduce quality of life, e.g. less leisure time.
A maximum of 5 marks for a one-sided answer. [8]


2 (a) Identification of factors:
• managers – accept managers as either labour or enterprise
• machinery – capital
• people – labour.
2 marks for the identification of 2 or 3 factors.
2 marks for the explanation of 2 or 3 factors.
Do not accept land. [4]
(b) (i) Horizontal integration:
• when firms engaged in the same stage of production of a good combine
• examples of car firms that have combined, e.g. Tata Motors and Jaguar. [4]