Cambridge International Examinations
Cambridge Ordinary Level
ECONOMICS
2281/22
October/November 2016
Paper 2 Structured Questions
MARK SCHEME
Maximum Mark: 90
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the October/November 2016 series for most
Cambridge IGCSE®, Cambridge International A and AS Level components and some Cambridge O Level
components.
® IGCSE is the registered trademark of Cambridge International Examinations.
This document consists of 10 printed pages.
© UCLES 2016
[Turn over
Page 2
1
Mark Scheme
Cambridge O Level – October/November 2016
Syllabus
2281
Paper
22
(a) Using information from the extract, explain how the Mints illustrate the economic
problem.
[2]
What people would like to consume/wants (1) exceeding the maximum output the countries
are capable of producing (1).
Note. no marks for just a definition of the economic problem.
(b) Calculate how many children were born in Turkey in 2014.
[2]
1 275 000 or 1.275m (2).
Correct working: 17
75m/1000 or version of 1275 (1).
(c) Using information from the extract, explain two reasons why the earnings of workers
in Nigeria are likely to increase.
[4]
1 mark for each of 2 reasons identified and 1 mark for each of 2 explanations.
Rising productivity (1) workers being able to produce more per hour/will become more
attractive to employers (1).
More MNCs setting up in the country (1) may increase demand for labour/may pay higher
wages than domestic producers (1).
Expanding markets (1) higher demand for products leads to higher demand for labour (1).
Inflation (1) workers may press for wage rises to keep up with inflation (1).
(d) Explain whether the extract suggests that Mexico operates a market economic system
or a mixed economic system.
[3]
A mixed economy (1).
Has private sector and public sector firms (1).
Health care is provided by both the public and private sector (1).
The government intervenes in the economy in the form of monetary policy (1).
Note. 1 mark for identifying mixed economy. Up to 2 marks for relevant evidence on factors
that influence the type of economic system.
(e) Analyse how the change in Indonesia’s exchange rate in 2014 is likely to have affected
the country’s import expenditure.
[4]
The value of the rupiah fell (1) more of the currency had to be exchanged to obtain a US
dollar (1) a lower exchange rate would increase the price of imports (1) this is likely to have
reduced demand for imports (1) import expenditure is likely to have fallen (1) if PED >1.
NOTE. OFR: if a candidate identifies a rise in the value of the rupiah, award a maximum of 2
marks for a good analysis based on this interpretation but no marks for just stating that the
rupiah rose in value.
© UCLES 2016
Page 3
Mark Scheme
Cambridge O Level – October/November 2016
Syllabus
2281
Paper
22
(f) Discuss whether the Human Development Index is a good measure of living
standards.
[5]
Up to 3 marks for why it is:
It is a wider measure than GDP per head (1).
It covers three important influences on living standards (1) income, education and health
care (1).
Produced by a reputable body (1) the United Nations (1).
Up to 3 marks for why it is not:
It does not take into account all the factors that influence living standards (1) examples, e.g.
distribution of income, environmental factors (up to 2).
The weightings may not reflect the relative contribution of the indicators to living standards
(1), e.g. some might argue life expectancy should be given a greater weighting than GDP per
head (1).
Do not expect other measures but reward appropriate ones such as the Multidimensional
Poverty Index which includes more indicators (1), e.g. access to sanitation (1).
(g) Using information from the extract, explain two functions of a trade union.
[4]
Collective bargaining/protecting rights/negotiating (1) to improve wages and/or working
conditions (1).
Taking industrial action, i.e. strikes (1) in pursuit of higher wages and/or better working
conditions (1).
To influence government policy (1) on, e.g. a minimum wage (1).
(h) Discuss whether countries with high population growth have high economic growth. [6]
Up to 4 marks for why they might:
Population growth resulting from net immigration/natural increase (rise in birth rate/fall in
death rate) (1) may increase the labour force (1) increasing productive potential/ability to
produce products will rise (1).
The quality of the labour force may increase (1) if the high population growth is the result of
the immigration of skilled workers/more young people who have received better education
than their elders (1) this will increase productivity (1) increasing productive potential/ability to
produce products will rise (1).
A growing population increases total demand (1) this will encourage firms to increase their
output (1) may attract MNCs to set up in the country (1).
A higher population may make better use of resources (1) allow firms to take advantage of
economies of scale (1).
Up to 4 marks for why they might not:
A higher population may increase economic growth in terms of output but not GDP per head
(1) if population grows at a greater rate than GDP (1).
A higher population may put pressure on resources (1) may be less capital/land per worker
(1) reducing productivity (1) resources may be diverted from increasing productive capacity
to coping with more dependents (1).
A rise in birth rate/fall in death rate/immigration of the elderly or children will increase
dependents (1) the very young and the old are not economically active (1).
Reward but do not expect reference to the optimum population.
© UCLES 2016
Cambridge International Examinations
Cambridge Ordinary Level
ECONOMICS
2281/22
May/June 2017
Paper 2 Structured Questions
MARK SCHEME
Maximum Mark: 90
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the May/June 2017 series for most Cambridge IGCSE®,
Cambridge International A and AS Level and Cambridge Pre-U components, and some Cambridge O Level
components.
® IGCSE is a registered trademark.
This document consists of 21 printed pages.
© UCLES 2017
[Turn over
2281/22
Cambridge O Level – Mark Scheme
PUBLISHED
Question
1(a)
Answer
Marks
Calculate the percentage of total world output of palm
oil produced by Indonesia in 2017.
October/November 2020
Guidance
1 Accept 60.
60% (1).
1(b)
Identify two variable costs of producing palm oil.
2 If more than two are given, consider the first two only.
Accept ‘labour’, ‘workers’ or ‘wages’ for ‘casual labour’.
fertilisers
palm oil seeds
casual labour
1(c)
Explain one opportunity cost of conserving forests in
Indonesia.
2
Logical explanation which might include:
Palm oil not produced / rice not produced / tourism lost as
a result of building fewer hotels / lost opportunity to
Norwegian government to spend on e.g. education (1)
(next) best alternative forgone (1).
1(d)
Explain two external costs of the destruction of forests
in Indonesia.
Logical explanation which might include:
Loss of wildlife habitats (1) extinction of species / harmful
effect on animals not involved in the economic decision (1).
Harmful gases/air pollution/pollution (1) unpleasant
atmosphere for local residents / illnesses / global
warming (1).
© UCLES 2020
Page 3 of 23
4 One mark for each of two costs identified and one mark for
each of two explanations.
2281/22
Cambridge O Level – Mark Scheme
PUBLISHED
Question
Answer
Marks
1(e)
Draw a demand and supply diagram to show the effect
of a ban on burning stubble on the market for rice.
October/November 2020
Guidance
4
Axes correctly labelled – price and quantity or p and q (1).
Demand and supply curves correctly labelled (1).
Supply curve shifted to the left (1).
Equilibriums – shown by lines P1 and Q1 and P2 and Q2, or
by labelling equilibrium points as E1 and E2 (1).
For quantity label accept Q, quantity demanded, quantity
supplied.
Do not reward a completely macro diagram.
© UCLES 2020
Page 4 of 23
2281/22
Question
1(f)
Cambridge O Level – Mark Scheme
PUBLISHED
Answer
Marks
Analyse the relationship between countries’ GDP per
head ranking and HDI ranking.
October/November 2020
Guidance
5 HDI now includes years of schooling but accept an idea that it
includes education - adult literacy rate was included in the old
measure.
Coherent analysis which might include:
Expected relationship:
Generally, the higher the GDP per head ranking, the higher
the HDI ranking / positive relationship / direct
relationship (1).
Supporting evidence:
The top country, the top two or top three countries with the
highest GDP per head ranking have the highest HDI
ranking (1) the country, two countries with the lowest GDP
per head ranking have the lowest HDI ranking (1).
Exception:
Cuba or Indonesia (1) supportive data – Cuba has a lower
GDP per head ranking than Indonesia but a higher HDI
ranking than Indonesia (1).
Analysis:
It is the expected relationship (1).
GDP is a component of HDI / HDI ranking influenced by
additional factors – education and/or life expectancy /
higher GDP per head enables more to be spent on
education and healthcare (1).
© UCLES 2020
Page 5 of 23
Responses do not have to be in the format suggested but
they should address the expected/normal relationship, offer
supporting evidence of that, highlight any exceptions to that,
and analyse the overall data.
2281/22
Question
1(g)
Cambridge O Level – Mark Scheme
PUBLISHED
Answer
Marks
Discuss whether or not the immigration of workers
would be likely to benefit the Indonesian economy.
Guidance
6 For an answer that examines the effects of migration of
workers from Indonesia, a maximum of 2 marks.
Up to 4 marks why it might:
may be skilled workers (1) who may be more
productive (1)
may be motivated to work harder (1) to improve quality
of life (1)
bring in new ideas (1) improving production methods /
use advanced technology (1)
may pay taxes (1) enabling the government to spend
more (1)
fill vacancies left by Indonesians going to work abroad
(1)
increase size of labour force (1) increase productive
capacity (1) reduce dependency ratio (1)
may increase exports / total (aggregate) demand (1)
may result in economic growth / increase output (1).
Up to 4 marks why it might not:
population is already increasing (1) immigration may
take it above the optimum level / lead to
overpopulation / put pressure on resources (1)
pressure may be put on housing / education / food (1)
may put downward pressure on wages (1) may replace
Indonesian workers / cause unemployment (1)
lowering living standards (1)
may need training (1) increasing firms’ costs (1)
may increase pollution (1)
may send money home to relatives (1) may have to
import more e.g. rice (1) negative impact on the current
account of the balance of payments (1).
© UCLES 2020
October/November 2020
Page 6 of 23
Apply this example to all questions with the command
word DISCUSS (1(g), 1(h), 2(d), 3(d), 4(d) and 5(d)).
Each point may be credited only once, on either side of an
argument, but separate development as to how/why the
outcome may differ is rewarded.
Generic example
mark
Tax revenue may decrease
1
... because of reason
e.g. incomes may be lower.
1
Tax revenue may increase because incomes may
be higher i.e. reverse of a previous argument.
0
Tax revenue may increase because of a different
reason
i.e. not the reverse of a previous argument
e.g. government spending on subsidies may
stimulate the economy more than spending on
education.
1
2281/22
Question
1(h)
Cambridge O Level – Mark Scheme
PUBLISHED
Answer
Marks
Discuss whether or not the Indonesian tourism
industry will increase in the future.
6
Up to 4 marks for why it might:
it is currently price competitive (1)
if the exchange rate continues to fall (1), price of
tourism for foreign visitors will fall (1)
it has natural tourist attractions (1) may preserve
forests (1)
global economy is growing (1), incomes are rising (1)
enabling foreigners to afford more holidays (1)
people coming from abroad to work in high paid jobs
may be skilled / highly motivated (1) raise quality of
tourism (1).
Indonesian government may subsidise the tourism
industry (1) lowering costs of production (1).
the industry may be promoted /advertised (1)
air travel is falling in price (1) air travel is a complement
to holidays (1)
foreign investment may be attracted into the industry
(1)
Up to 4 marks for why it might not:
pollution may discourage visitors (1) worried about
health (1)
there are substitutes (1) Indonesia has competition
from neighbouring countries (1)
natural areas of beauty may be destroyed (1) by e.g.
new palm oil plantations / natural disasters (1)
net emigration (1) may mean there are not enough
workers (1).
Covid-19 may continue to reduce tourism (1).
© UCLES 2020
Page 7 of 23
October/November 2020
Guidance
2281/22
Cambridge O Level – Mark Scheme
PUBLISHED
Question
1(a)
Answer
Marks
Calculate, in $, Air India’s loss in 2018.
1 7
7
0.7bn, 700m, 700 000 000.
1(b)
Identify two substitutes for air travel.
October/November 2021
Guidance
10 to the power 8.
10ˆ8.
2 For ‘ships’ accept water travel.
Trains (1) ships (1).
1(c)
Explain one characteristic that suggests that Air India
was a monopoly in 1994.
2
Share of the market was 100% (1) only firm / share above
25% of the market / share above 40% / a complete/pure
monopoly / no competition (1).
Able to set price (1) a price-maker (1).
1(d)
Explain two reasons why a government may privatise an
industry.
Logical explanation which might include:
Raise (tax) revenue (1) which could be spent on e.g.
education, healthcare / increase government spending (1).
Increase efficiency / may perform better in the private sector /
higher productivity (1) introduce a profit motive / increase
output/GDP / reduce costs of production (1).
Increase competition (1) lower price / increase quality /
increase choice (1).
Industry may be loss making / costly to run (1) reduce need to
use tax revenue to finance industry / tax revenue can be used
for other purposes e.g. education / increase government
spending / reduce national debt / tax rates might be cut (1).
© UCLES 2021
Page 7 of 24
4 One mark each for each of two reasons identified and one
mark each for each of two explanations.
2281/22
Cambridge O Level – Mark Scheme
PUBLISHED
Question
Answer
Marks
1(e)
Analyse how India’s position on the current account of
its balance of payments in 2017 compares with the other
four countries.
Coherent analysis which might include:
Brazil, India and Kenya had a current account deficit (1) while
China and Russia had a current account surplus (1).
India’s current account deficit is the largest in terms of $s (1)
but the second largest in % terms (1).
China’s current account had a larger impact on its economy
in terms of $s (1) and Kenya’s in percentage terms (1).
Russia’s current account surplus is larger than China’s in
terms of % of GDP (1).
China has the largest surplus in $s (1).
1(f)
Analyse how a successful airline industry can promote
economic growth.
Coherent analysis which might include;
May increase number of tourists (1) raise revenue from
tourism / increase the size of the tourist industry (1) may
increase exports / imports / increase the ease of movement of
people and goods into and out of the country (1).
May attract more MNCs (1) these will increase the country’s
output/GDP (1) introduce new technology / new methods of
production (1).
May lower costs of production (1) raising firms’ profits (1)
providing the incentive/finance to expand (1) increase the
country’s output/GDP (1).
May increase employment (1) raise incomes (1) increase total
demand (1) increase tax revenue (1) more could be spent on
e.g. education (1).
May increase (geographical) mobility of labour (1) making it
easier for expanding firms to recruit workers (1).
© UCLES 2021
Page 8 of 24
October/November 2021
Guidance
4 Up to 2 marks maximum for idea of size of current account
balance without reference to deficit or surplus e.g. China
has the largest current account balance and India the
lowest.
So maximum of 2 marks without reference to deficit/s or
surplus/es.
No marks for writing about a budget balance.
5
2281/22
Cambridge O Level – Mark Scheme
PUBLISHED
Question
Answer
Marks
1(g)
Discuss whether the Indian government should increase
the tax on airline fuel.
Award up to 4 marks for why it should:
Raise revenue (1) can be used to finance e.g. education /
training of pilots / increase government spending (1)
burden more likely to fall on the rich / may enable tax on
basic necessities to be reduced (1).
May reduce market failure (1) air travel causes external
costs / social cost exceeds social benefit (1) air/noise
pollution (1) a tax may reduce air travel / lower demand
for air travel (1) by raising price (1) encourage people to
switch to other forms of transport (1).
Award up to 4 marks for why it should not:
Will increase airlines’ costs / reduce airlines’ profits /
cause a loss (1) airlines’ other costs are rising (1) difficult
for them to cover higher costs / raise prices (1) due to
elastic demand / price sensitive demand (1) may go out
of business (1) may discourage investment (1) causing
unemployment (1).
May reduce tourism in the country (1) harming the
current account position (1).
Airline fuel is already highly taxed (1) may be difficult to
tax further (1).
Ait travel is safer than car travel in many countries (1) so
injuries may increase if there is a switch between the two
(1).
© UCLES 2021
Page 9 of 24
October/November 2021
Guidance
6 Apply this example to all questions with the command
word DISCUSS
(1g, 1h, 2d, 3d, 4d and 5d)
Each point may be credited only once, on either side of an
argument, but separate development as to how/why the
outcome may differ is rewarded.
Generic example
mark
Tax revenue may decrease
1
... because of reason e.g. incomes may be
lower.
1
Tax revenue may increase because incomes
may be higher i.e. reverse of a previous
argument.
0
Tax revenue may increase because of a different
reason i.e. not the reverse of a previous
argument e.g. government spending on
subsidies may stimulate the economy more than
spending on education.
1
2281/22
Question
1(h)
Cambridge O Level – Mark Scheme
PUBLISHED
Answer
Marks
Discuss whether more people will apply to be pilots for
Indian airlines in the future.
Award up to 4 marks for logical reasons why they might:
Introduction of new technology (1) will make the job
easier (1)
Improved staff training (1) improve/increase skills (1)
improve motivation / satisfaction (1)
improve working conditions (1) airlines want to retain
staff (1)
More routes are being flown / size of industry is
increasing (1) demand for pilots may increase / more job
opportunities (1) may raise wages (1).
More fringe benefits may be provided (1) example (1).
Being a pilot is a highly regarded occupation in many
countries (1).
Award up to 4 marks for logical reasons why they might
not:
There may not be more people qualified to become pilots
(1) education standards may fall / qualifications may be
high (1).
Period of training may increase / cost of training may
increase (1).
Other jobs may offer higher wages / better working
conditions / wages of pilots may fall (1) example of other
jobs (1).
Advances in technology may reduce the need for pilots
(1) may increase skills needed (1).
Increased tax on fuel may reduce the size of the airline
industry (1) causing people to expect fewer job
opportunities / unemployment of pilots (1).
Price of substitute forms of transport may reduce (1)
lowering demand for pilots (1).
© UCLES 2021
Page 10 of 24
October/November 2021
Guidance
6 Note: some points may be given in reverse e.g. education
standards may rise.
Answer
Question
© UCLES 2021
2(b)
Guidance
Guidance
October/November 2021
But for the tertiary sector example accept the sale of a
product e.g. the sale of jewellery.
4 For tertiary sector, it is not sufficient to just have the sector
which sells products as this is only part of the sector.
2 No marks for an example.
Marks
Marks
Page 11 of 24
Logical explanation which might include:
Secondary sector covers manufacturing (and construction) /
converts primary products into finished goods (1) e.g. car
industry (1).
Tertiary sector covers services / final stage of production (1)
e.g. insurance (1).
Explain, with examples, the difference between the
secondary sector and the tertiary sector.
No opportunity cost (1) a good that takes no
resources/factors of production to produce / naturally
abundant in supply / does not use scarce resources (1).
Define a free good.
Job may require workers to be away from their families
(1) people may want to stay close to home (1).
Working hours may be unsociable (1) people may want
to spend more time with their families (1).
May be considered in some cases to be a risky job (1).
1(h)
2(a)
Answer
Cambridge O Level – Mark Scheme
PUBLISHED
Question
2281/22