Embed Size (px)
Citation preview
Specification and Sample Assessment Material
Edexcel International GCSE in Economics (4EC0)
First examination 2011
Pearson Education Ltd is one of the UK’s largest awarding organisations, offering academic and vocational qualifications and testing to schools, colleges, employers and other places of learning, both in the UK and internationally. Qualifications offered include GCSE, AS and A Level, NVQ and our BTEC suite of vocational qualifications, ranging from Entry Level to BTEC Higher National Diplomas. Pearson Education Ltd administers Edexcel GCSE examinations.
Through initiatives such as onscreen marking and administration, Pearson is leading the way in using technology to modernise educational assessment, and to support teachers and learners.
References to third-party material made in this specification are made in good faith. We do not endorse, approve or accept responsibility for the content of materials, which may be subject to change, or any opinions expressed therein. (Material may include textbooks, journals, magazines and other publications and websites.)
Authorised by Martin Stretton Prepared by Lucy Stewart Publications code: UG022514
All the material in this publication is copyright © Pearson Education Limited 2012
International GCSE
Economics (4EC0)
Specification
First examination 2011
Introduction
The Edexcel International General Certificate of Secondary Education (International GCSE) in Economics is designed for use in schools and colleges. It is part of a suite of International GCSE qualifications offered by Edexcel.
The Edexcel International GCSE in Economics is designed as a two-year course. As students progress through the course they are introduced to new ideas and concepts while continuing to use and reinforce previously learned concepts and skills. The course is designed to give students a sound understanding of economics, and the ability to use knowledge, skills and understanding appropriately in the context of individual countries and the global economy.
Key subject aims
The Edexcel International GCSE in Economics qualification enables students to:
develop an understanding of economic concepts and apply these concepts to real-life situations
interpret and evaluate economic data in order to make reasoned arguments and informed judgements
develop an awareness of economic change and its impact on developing and developed economies
understand economic issues, problems and possible solutions that affect mixed economies
participate effectively in society as citizens, producers and consumers.
About this specification
Key features and benefits of the specification
Key features and benefits are:
100% examination — single assessment route allowing all students to demonstrate their knowledge and understanding of economics
assessment opportunity in both January and June examination series
comprehensive and detailed description of subject content
subject content kept to manageable proportions
provides opportunities to apply the subject content to local economic circumstances
appropriate for students of various ages and from diverse backgrounds in terms of general education and lifelong learning
provides a sound foundation for Edexcel AS GCE and Advanced GCE in Economics, or equivalent qualifications.
Contents
Specification at a glance 1
Qualification content 3
Paper 1: Economics 3
Content overview 3
Subject content 4
A The Market System 4
B Business Economics 7
C Government and the Economy 10
D The Global Economy 13
Assessment 15
Assessment summary 15
Assessment Objectives and weightings 15
Entering your students for assessment 16
Student entry 16
Combinations of entry 16
Access arrangements and special requirements 16
Assessing your students 16
Awarding and reporting 17
Language of assessment 17
Malpractice and plagiarism 17
Student recruitment 17
Progression 17
Grade descriptions 18
Support and training 19
Edexcel support services 19
Training 19
Textbooks and resources 20
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012 1
Specification at a glance The Edexcel International GCSE in Economics is assessed through a written examination paper.
Paper 1: Economics Paper code: 4EC0/01
Externally assessed
Availability: January and June series
First assessment: June 2011
Overview of content
There are four areas of subject content. Students are required to study all four areas.
A The Market System
– Demand and supply
– The role of the market in solving the economic problem
– The labour market
B Business Economics
– Production
– Competition
– Public and private sectors
C Government and the Economy
– Macroeconomic objectives
– Policies
– Relationship between objectives and policies
D The Global Economy
– Globalisation
– International trade
– Exchange rates
Overview of assessment
This qualification is assessed through an examination paper lasting two hours and 30 minutes, set and marked by Edexcel.
Single tier of entry.
The total number of marks available is 120.
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012
2
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012 3
Qualification content
Paper 1: Economics
Content overview
There are four areas of subject content. Students are required to study all four areas.
A The Market System
Demand and supply
The role of the market in solving the economic problem
The labour market
B Business Economics
Production
Competition
Public and private sectors
C Government and the Economy
Macroeconomic objectives
Policies
Relationship between objectives and policies
D The Global Economy
Globalisation
International trade
Exchange rates
Assessment overview
The assessment of this qualification is through an examination paper lasting two hours and 30 minutes, set and marked by Edexcel.
Single tier of entry.
The total number of marks available is 120.
The examination paper consists of four compulsory questions, each worth 30 marks.
The questions are a mixture of structured, data response, short-answer, multiple-choice and open-ended questions.
Each question will be based on a particular theme which will relate to one of the four sections of the subject content. However, due to the nature of economics, there may be some overlap between the questions.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2
4 Subje
ct c
onte
nt
A
The
Mar
ket
Syst
em
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
1 D
eman
d a
nd
su
pp
ly
Rol
e in
the
dete
rmin
atio
n of
pr
ice
in th
e m
arke
t.
Dem
and
an
d s
up
ply
cu
rves
T
he r
elat
ions
hip
betw
een
pric
e an
d qu
anti
ty d
eman
ded
and
quan
tity
sup
plie
d.
T
he c
once
pt o
f th
e m
arke
t equ
ilib
rium
: shi
fts
and
mov
emen
ts
of d
eman
d an
d su
pply
cur
ves.
F
acto
rs a
ffec
ting
dem
and:
– ad
vert
isin
g, in
com
e, p
opul
atio
n, f
ashi
on, p
rice
, oth
er
prod
ucts
, ie
com
plem
ents
and
sub
stit
utes
.
F
acto
rs a
ffec
ting
sup
ply:
– co
sts
of p
rodu
ctio
n, in
dire
ct ta
xes
and
subs
idie
s, c
hang
es
in te
chno
logy
, nat
ural
fac
tors
, eg
wea
ther
.
Dia
gram
s are
an
esse
ntia
l too
l for
bot
h th
e un
ders
tand
ing
and
anal
ysis
of d
eman
d an
d su
pply
. The
y sh
ould
be
used
:
as
an
aid
to sh
ow th
e re
latio
nshi
p be
twee
n a
chan
ge in
pri
ce
and
a m
ovem
ent a
long
the
dem
and
and
supp
ly c
urve
s
to
dis
tingu
ish
betw
een
the
effe
cts o
f a c
hang
e in
pri
ce
(mov
emen
t alo
ng th
e cu
rves
) and
a sh
ift in
the
curv
es fo
r bot
h de
man
d an
d su
pply
to
ana
lyse
the
effe
cts o
f cha
nges
in d
eman
d an
d su
pply
on
the
mar
ket e
quili
briu
m p
rice
, qua
ntity
dem
ande
d an
d qu
antit
y su
pplie
d.
Stud
ents
shou
ld n
ote
that
the
topi
c Po
pula
tion
shou
ld in
clud
e th
e m
ain
dete
rmin
ants
of t
he si
ze a
nd a
ge d
istr
ibut
ion
of th
e po
pula
tion
and
the
depe
nden
cy ra
tio. T
he c
onse
quen
ces o
f ch
ange
s in
the
popu
latio
n on
dem
and,
firm
s, go
vern
men
t, ec
onom
y an
d th
e en
viro
nmen
t for
m th
e ba
sis o
f fur
ther
ana
lysi
s in
Sect
ions
B, C
and
D o
f the
subj
ect c
onte
nt.
P
rice
an
d in
com
e el
asti
city
D
efin
itio
ns a
nd f
orm
ulae
.
F
acto
rs a
ffec
ting
pri
ce e
last
icit
y of
dem
and:
sub
stit
utes
, de
gree
of
nece
ssit
y, p
erce
ntag
e of
inco
me
spen
t on
good
s or
se
rvic
e.
F
acto
rs a
ffec
ting
pri
ce e
last
icit
y of
sup
ply:
tim
e, e
last
icit
y of
fa
ctor
s of
pro
duct
ion.
F
acto
rs a
ffec
ting
inco
me
elas
tici
ty: n
orm
al a
nd in
feri
or g
oods
.
A
ppli
cati
on o
f el
asti
city
, its
eff
ects
on
the
deci
sion
mak
ing
of
firm
s an
d go
vern
men
t.
Cal
cula
tions
usi
ng th
e fo
rmul
ae a
re n
ot re
quir
ed. D
iagr
ams w
ith
slop
es sh
owin
g el
astic
and
inel
astic
dem
and
and
supp
ly c
urve
s ar
e re
quir
ed.
Use
of t
otal
reve
nue
calc
ulat
ions
to sh
ow th
e re
latio
nshi
p be
twee
n a
chan
ge in
pri
ce a
nd th
e ch
ange
in to
tal r
even
ue fo
r diff
erin
g el
astic
ities
is im
port
ant.
Use
of d
ata
to sh
ow th
e re
latio
nshi
p be
twee
n ch
ange
s in
inco
me
and
quan
tity
dem
ande
d re
quir
ed. D
iagr
ams n
ot re
quir
ed.
Appl
icat
ion
and
anal
ysis
of e
xam
ples
requ
ired
. Inc
lude
the
diffe
renc
es in
ela
stic
ity o
f sup
ply
betw
een
man
ufac
ture
d go
ods
and
prim
ary
prod
ucts
.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2 5
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
2 T
he
role
of
the
mar
ket
in s
olvi
ng
the
econ
omic
p
rob
lem
Res
olvi
ng
scar
city
F
init
e re
sour
ces
and
choi
ce.
O
ppor
tuni
ty c
ost a
nd it
s ef
fect
s on
the
indi
vidu
al, f
irm
s an
d go
vern
men
ts.
P
rodu
ctio
n po
ssib
ility
cur
ves
to il
lust
rate
opp
ortu
nity
cos
t
Exam
ples
of o
ppor
tuni
ty c
ost n
eede
d.
T
he
mix
ed e
con
omy
D
efin
itio
ns o
f m
ixed
eco
nom
y, p
ubli
c se
ctor
and
pri
vate
se
ctor
.
C
once
pt o
f m
arke
t fai
lure
and
rol
e of
pub
lic
sect
or.
T
he r
ole
of th
e pu
blic
sec
tor
and
priv
ate
sect
ors
in th
e pr
oduc
tion
of
good
s an
d se
rvic
es.
How
the
prob
lem
s of w
hat t
o pr
oduc
e, h
ow to
pro
duce
and
for
who
m to
pro
duce
are
solv
ed th
roug
h th
e m
ixed
eco
nom
y. T
ypes
of
busi
ness
org
anis
atio
n in
the
priv
ate
sect
or n
ot re
quir
ed.
Con
cept
of e
ffici
ency
requ
ired
but
not
type
s of e
ffici
ency
, ie
allo
cativ
e an
d pr
oduc
tive.
Dis
cuss
ion
of m
oder
n ex
ampl
es, d
raw
n fr
om a
n ec
onom
y of
you
r ch
oice
.
3 T
he
lab
our
mar
ket
: an
ex
amp
le o
f a
mar
ket
in a
mix
ed
econ
omy
Wag
es a
nd
em
plo
ymen
t in
a f
ree
econ
omy
D
ivis
ion
of la
bour
.
A
dvan
tage
s an
d di
sadv
anta
ges
of d
ivis
ion
of la
bour
: for
the
wor
ker
and
for
the
firm
.
F
acto
rs a
ffec
ting
dem
and
for
labo
ur:
– de
man
d fo
r fi
nal p
rodu
ct
– av
aila
bili
ty o
f su
bsti
tute
s, e
g m
achi
nes
– pr
oduc
tivi
ty o
f th
e w
orkf
orce
.
F
acto
rs a
ffec
ting
sup
ply
of la
bour
:
– de
term
inan
ts o
f w
orki
ng p
opul
atio
n, ie
age
dis
trib
utio
n,
reti
rem
ent a
nd s
choo
l-le
avin
g ag
e, f
emal
e pa
rtic
ipat
ion
in
the
labo
ur f
orce
.
Q
uali
fica
tion
s an
d tr
aini
ng.
Dia
gram
s ind
icat
ing
how
cha
nges
in d
eman
d an
d su
pply
of
labo
ur (i
n bo
th th
e ec
onom
y an
d pa
rtic
ular
occ
upat
ions
) sho
uld
be u
sed
to a
naly
se th
e ef
fect
s on
wag
es a
nd e
mpl
oym
ent.
Both
the
quan
tity
and
qual
ity o
f the
labo
ur sh
ould
be
cons
ider
ed.
Mar
gina
l rev
enue
pro
duct
ivity
theo
ry n
ot re
quir
ed.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2
6 Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
3 T
he
lab
our
mar
ket
: an
ex
amp
le o
f a
mar
ket
in a
mix
ed
econ
omy
(con
tinue
d)
Inte
rfer
ence
in t
he
lab
our
mar
ket
M
inim
um w
age
legi
slat
ion:
– re
ason
s fo
r th
e le
gisl
atio
n
– di
agra
m to
sho
w th
e ef
fect
s on
wag
es a
nd e
mpl
oym
ent.
T
rade
uni
ons:
– ef
fect
s of
thei
r st
reng
th o
n w
ages
and
em
ploy
men
t.
Refe
renc
e sh
ould
be
mad
e to
min
imum
wag
e le
gisl
atio
n in
an
econ
omy
of y
our c
hoic
e.
Des
crip
tions
of t
ypes
or d
etai
led
acco
unts
of f
unct
ions
of u
nion
s ar
e no
t req
uire
d. E
mph
asis
shou
ld b
e on
exp
lana
tion
of th
e ef
fect
s.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2 7
B
Busi
nes
s Ec
onom
ics
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
1 P
rod
uct
ion
P
rod
uct
ion
an
d p
rod
uct
ivit
y
F
acto
rs o
f pr
oduc
tion
: lan
d, la
bour
, cap
ital
, ent
erpr
ise.
S
ecto
rs o
f th
e ec
onom
y: p
rim
ary,
sec
onda
ry, t
erti
ary.
C
hang
ing
impo
rtan
ce o
f th
ese
sect
ors
in te
rms
of e
mpl
oym
ent
and
outp
ut o
ver
tim
e, in
dev
elop
ing
and
deve
lope
d ec
onom
ies.
Emph
asis
on
the
diffe
renc
e be
twee
n pr
oduc
tion
and
prod
uctiv
ity.
Rela
te in
crea
ses i
n fa
ctor
s to
incr
ease
d pr
oduc
tion.
Mod
ern
exam
ples
, dra
wn
from
an
econ
omy
of y
our c
hoic
e.
Dat
a fo
r con
tras
ting
deve
lope
d an
d de
velo
ping
cou
ntri
es sh
ould
be
stud
ied
by c
onsi
deri
ng th
e m
ovem
ent a
way
from
pri
mar
y an
d to
war
ds se
cond
ary
and
tert
iary
indu
stry
.
P
rod
uct
ion
cos
ts a
nd
rev
enu
e
F
ixed
and
var
iabl
e co
sts,
tota
l cos
t, av
erag
e co
st, p
rice
, tot
al
reve
nue
and
prof
it.
E
cono
mie
s an
d di
seco
nom
ies
of s
cale
.
In
tern
al e
cono
mie
s: m
arke
ting
, tec
hnic
al, f
inan
cial
, m
anag
eria
l, ri
sk-b
eari
ng.
E
xter
nal e
cono
mie
s: s
kill
ed la
bour
, inf
rast
ruct
ure,
anc
illa
ry
firm
s.
D
isec
onom
ies:
bur
eauc
racy
, lab
our
rela
tion
s.
Cal
cula
tions
with
sim
ple
num
eric
al e
xam
ples
requ
ired
.
Mar
gina
l cos
t and
mar
gina
l rev
enue
not
requ
ired
.
Dia
gram
of a
vera
ge c
ost c
urve
show
ing
effe
ct o
f eco
nom
ies a
nd
dise
cono
mie
s of s
cale
is th
e on
ly c
ost c
urve
requ
ired
.
P
rod
uct
ivit
y an
d w
ealt
h c
reat
ion
F
acto
rs a
ffec
ting
pro
duct
ivit
y:
– la
nd: u
se o
f fe
rtil
iser
s, d
rain
age,
irri
gati
on
– la
bour
: im
prov
ed h
uman
cap
ital
– ca
pita
l: u
se o
f m
ore
mac
hine
ry a
nd te
chno
logi
cal
adva
nces
.
This
shou
ld fo
rm a
bas
is fo
r fur
ther
ana
lysi
s of e
cono
mic
gro
wth
in
Sec
tion
C o
f the
subj
ect c
onte
nt, G
over
nmen
t and
the
Eco
nom
y.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2
8 Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
1 P
rod
uct
ion
(c
ontin
ued)
E
xter
nal
itie
s: c
osts
an
d b
enef
its
S
ocia
l cos
t = p
riva
te c
ost +
ext
erna
l cos
t (po
llut
ion,
co
nges
tion
).
S
ocia
l ben
efit
= p
riva
te b
enef
it +
ext
erna
l ben
efit
(ed
ucat
ion,
he
alth
).
G
over
nmen
t pol
icy
to d
eal w
ith
exte
rnal
itie
s: ta
xati
on,
subs
idie
s, f
ines
, gov
ernm
ent r
egul
atio
n.
This
shou
ld fo
rm a
bas
is fo
r fur
ther
ana
lysi
s of p
rote
ctio
n of
the
envi
ronm
ent i
n Se
ctio
n C
of t
he su
bjec
t con
tent
, Gov
ernm
ent a
nd
the
Eco
nom
y.
Dia
gram
s are
not
req
uire
d.
Stud
ents
shou
ld c
onsi
der t
he e
ffect
s of e
xter
nalit
ies i
n re
latio
n to
fir
ms a
nd c
onsu
mer
s. Ap
plic
atio
n of
con
cept
s to
exam
ples
from
an
econ
omy
of y
our c
hoic
e.
2 C
omp
etit
ion
C
omp
etit
ive
mar
ket
s
A
dvan
tage
s an
d di
sadv
anta
ges
of c
ompe
titi
on to
fir
ms,
co
nsum
ers
and
the
econ
omy:
eff
icie
ncy,
cho
ice,
qua
lity
, in
nova
tion.
A
dvan
tage
s an
d di
sadv
anta
ges
of la
rge
and
smal
l fir
ms.
F
acto
rs in
flue
ncin
g th
e gr
owth
of
firm
s; c
ause
s, ty
pes,
li
mit
atio
ns.
Emph
asis
on
mar
kets
hav
ing
vary
ing
degr
ees o
f com
petit
ion
depe
ndin
g up
on th
e nu
mbe
r of f
irm
s in
the
mar
ket.
A st
udy
of
perf
ect c
ompe
titio
n no
t req
uire
d.
Lim
itatio
ns sh
ould
incl
ude
size
of m
arke
t, ai
m o
f ent
repr
eneu
r an
d la
ck o
f fin
ance
.
M
onop
oly
M
ain
feat
ures
: bar
rier
s to
ent
ry, o
ne d
omin
ant s
uppl
ier
in a
m
arke
t.
L
egal
def
init
ion(
s).
A
dvan
tage
s an
d di
sadv
anta
ges
of m
onop
oly:
eco
nom
ies
of
scal
e, p
rodu
ct in
nova
tion
, pri
ce, c
hoic
e, e
ffic
ienc
y.
Mod
ern
exam
ples
of b
arri
ers t
o en
try
from
an
econ
omy
of y
our
choi
ce b
ut n
o de
tail
requ
ired
.
Lega
l def
initi
on is
, for
exa
mpl
e ta
ken
as 2
5% m
arke
t sha
re.
Dia
gram
s not
requ
ired
but
abi
lity
to a
naly
se a
nd e
valu
ate
in
wri
ting
is re
quir
ed.
O
ligo
pol
y
M
ain
feat
ures
: bar
rier
s to
ent
ry, a
few
, lar
ge f
irm
s do
min
ate
the
mar
ket,
cart
els,
non
-pri
ce a
nd p
rice
com
peti
tion
.
A
dvan
tage
s an
d di
sadv
anta
ges
of o
ligo
poli
es: e
cono
mie
s of
sc
ale,
com
peti
tion
, col
lusi
on.
Anal
ysis
requ
ired
of m
oder
n ex
ampl
es o
f olig
opol
istic
pra
ctic
es
from
an
econ
omy
of y
our c
hoic
e, fo
r exa
mpl
e th
e ca
r ind
ustr
y in
Fr
ance
.
Dia
gram
s not
requ
ired
.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2 9
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
3 P
ub
lic
and
pri
vate
se
ctor
s D
iffe
ren
ces
bet
wee
n p
ub
lic
and
pri
vate
sec
tors
in t
erm
s of
ow
ner
ship
, con
trol
, aim
s.
G
over
nm
ent
regu
lati
on
T
o pr
omot
e co
mpe
titi
on: m
onop
oly
and
mer
ger
cont
rol.
T
o in
flue
nce
loca
tion
of
firm
s: s
olut
ion
to r
egio
nal p
robl
ems
of u
nem
ploy
men
t, co
nges
tion
, inc
ome
ineq
uali
ty.
Out
line
know
ledg
e of
com
petit
ion
polic
y in
a c
ount
ry o
f you
r ch
oice
.
Fact
ors a
ffect
ing
loca
tion
of in
dust
ry n
ot re
quir
ed.
P
riva
tisa
tion
Eff
ects
of
priv
atis
atio
n on
con
sum
ers,
wor
kers
, fir
ms,
gov
ernm
ent
and
the
econ
omy.
Abili
ty to
ana
lyse
mod
ern
exam
ples
requ
ired
, fro
m a
cou
ntry
of
your
cho
ice.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2
10
C
Gov
ernm
ent
and t
he
Econ
omy
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
1 M
acro
econ
omic
ob
ject
ives
F
ive
mac
roec
onom
ic o
bje
ctiv
es: e
cono
mic
gro
wth
; inf
lati
on;
unem
ploy
men
t; b
alan
ce o
f pa
ymen
ts o
n cu
rren
t ac
coun
t;
prot
ecti
on o
f th
e en
viro
nmen
t. T
hese
are
out
line
d in
gre
ater
det
ail
belo
w.
Stud
ents
are
exp
ecte
d to
be
able
to u
nder
stan
d an
d an
alys
e si
mpl
e da
ta re
latin
g to
the
five
mac
roec
onom
ic o
bjec
tives
.
Stud
ents
shou
ld st
udy
regi
onal
pol
icy
in th
e co
ntex
t of t
he fi
ve
obje
ctiv
es.
E
con
omic
gro
wth
G
ross
Dom
esti
c P
rodu
ct (
GD
P)
as th
e m
easu
rem
ent o
f ec
onom
ic g
row
th: t
otal
gro
wth
and
rat
e of
gro
wth
.
T
he e
cono
mic
cyc
le: r
ecov
ery;
boo
m; r
eces
sion
; slu
mp.
Stud
ents
are
not
requ
ired
to h
ave
know
ledg
e of
nat
iona
l ac
coun
ting.
Som
e gr
asp
of th
e lim
itatio
ns o
f GD
P as
a m
easu
re is
ex
pect
ed.
In
flat
ion
M
easu
rem
ent o
f in
flat
ion:
Ret
ail P
rice
Ind
ex (
RP
I) o
r C
onsu
mer
Pri
ce I
ndex
(C
PI)
.
C
ause
s: d
eman
d pu
ll, c
ost p
ush,
mon
ey s
uppl
y.
C
onse
quen
ces:
eff
ects
on
pric
es, s
avin
gs, w
ages
, bal
ance
of
paym
ents
, une
mpl
oym
ent,
the
func
tion
s of
mon
ey.
A de
taile
d kn
owle
dge
of th
e RP
I or C
PI is
not
requ
ired
; ana
lysi
s of
the
caus
es a
nd c
onse
quen
ces o
f inf
latio
n sh
ould
be
the
maj
or
focu
s.
Cha
ract
eris
tics o
f mon
ey a
re n
ot re
quir
ed.
U
nem
plo
ymen
t
In
tern
atio
nal L
abou
r O
rgan
isat
ion
(IL
O)
mea
sure
men
t of
unem
ploy
men
t.
T
ypes
— c
ycli
cal,
stru
ctur
al, f
rict
iona
l, se
ason
al, v
olun
tary
.
Stud
ents
are
not
requ
ired
to h
ave
deta
iled
know
ledg
e of
un
empl
oym
ent f
igur
es b
ut sh
ould
be
able
to a
pply
and
ana
lyse
ty
pes o
f une
mpl
oym
ent.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2 11
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
1 M
acro
econ
omic
ob
ject
ives
(c
ontin
ued)
Bal
ance
of
pay
men
ts o
n c
urr
ent
acco
un
t
D
efic
its
and
surp
luse
s.
T
rade
in g
oods
(vi
sibl
es)
and
trad
e in
ser
vice
s (i
nvis
ible
s)
Mod
ern
exam
ples
of t
he c
urre
nt a
ccou
nt, f
rom
a c
ount
ry o
f you
r ch
oice
, are
requ
ired
.
P
rote
ctio
n o
f th
e en
viro
nm
ent
U
se o
f re
gula
tion
and
taxa
tion
to in
flue
nce
busi
ness
and
co
nsum
er b
ehav
iour
.
Stud
ents
shou
ld n
ote
that
exc
hang
e ra
tes a
re d
ealt
with
und
er
Sect
ion
D o
f the
subj
ect c
onte
nt, T
he G
loba
l Eco
nom
y.
Stud
ents
shou
ld b
e aw
are
that
the
envi
ronm
ent i
s inc
reas
ingl
y a
conc
ern
of g
over
nmen
ts.
Exte
rnal
cos
t/ben
efits
dia
gram
s are
not
requ
ired
.
2 P
olic
ies:
to
dea
l w
ith
eco
nom
ic
grow
th, i
nfl
atio
n,
un
emp
loym
ent,
th
e b
alan
ce o
f p
aym
ents
on
cu
rren
t ac
cou
nt
and
th
e p
rote
ctio
n
of t
he
envi
ron
men
t
Pol
icy
inst
rum
ents
Dem
and
sid
e
F
isca
l: g
over
nmen
t rev
enue
and
exp
endi
ture
.
R
even
ue: d
irec
t and
indi
rect
taxa
tion
.
M
ain
area
s of
pub
lic
sect
or s
pend
ing.
T
axat
ion,
reg
ulat
ion
and
ince
ntiv
es a
imed
at t
he p
rote
ctio
n of
th
e en
viro
nmen
t.
M
onet
ary:
– in
tere
st r
ates
and
mon
ey s
uppl
y
– ef
fect
s of
inte
rest
rat
es o
n co
nsum
ers’
and
fir
ms’
de
cisi
ons.
M
oney
sup
ply:
rel
atio
nshi
p w
ith
inte
rest
rat
es a
nd in
flat
ion.
Stud
ents
are
not
requ
ired
to d
raw
dia
gram
s or t
o us
e Ag
greg
ate
Supp
ly/A
ggre
gate
Dem
and
mod
el (A
S/AD
) ana
lysi
s in
thei
r an
swer
s.
Stud
ents
shou
ld u
nder
stan
d th
at fi
scal
pol
icy
oper
ates
thro
ugh
gove
rnm
ent b
udge
ts a
nd a
ppre
ciat
e th
e lik
ely
impa
ct o
f a b
udge
t de
ficit
or su
rplu
s. D
etai
led
know
ledg
e of
any
spec
ific
budg
et is
no
t re
quir
ed.
Stud
ents
are
not
requ
ired
to h
ave
deta
iled
know
ledg
e of
mon
ey
supp
ly d
efin
ition
s.
S
up
ply
sid
e
S
uppl
y si
de p
olic
ies:
pri
vati
sati
on; d
ereg
ulat
ion;
edu
cati
on
and
trai
ning
; pro
duct
ivity
of
the
wor
kfor
ce.
Stud
ents
shou
ld u
nder
stan
d th
at su
pply
side
pol
icie
s ope
rate
ove
r a
long
er te
rm th
an d
eman
d si
de p
olic
ies.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2
12
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
3 R
elat
ion
ship
b
etw
een
ob
ject
ives
an
d p
olic
ies
Thi
s br
ings
toge
ther
1
and
2.
T
he d
iffe
rent
eff
ects
that
mac
roec
onom
ic m
easu
res
may
hav
e on
the
five
mac
roec
onom
ic o
bjec
tive
s.
T
hese
eff
ects
wil
l be
both
pos
itiv
e an
d ne
gati
ve, a
nd m
ay
invo
lve
trad
e-of
fs b
etw
een
obje
ctiv
es a
nd is
sues
of
equi
ty.
This
sect
ion
shou
ld n
ot b
e se
en a
s a se
para
te p
art.
Anal
ysis
and
ev
alua
tion
of o
bjec
tives
and
pol
icie
s sho
uld
be p
art o
f Sec
tions
C1
and
C2.
Stud
ents
are
exp
ecte
d to
be
able
to a
naly
se a
nd e
valu
ate
the
effe
ctiv
enes
s of d
iffer
ent p
olic
ies i
n a
vari
ety
of e
cono
mic
si
tuat
ions
.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2 13
D
The
Glo
bal
Eco
nom
y
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
1 G
lob
alis
atio
n
T
he in
crea
sing
inte
grat
ion
and
inte
rdep
ende
nce
of n
atio
nal
econ
omie
s.
M
NC
s (m
ulti
-nat
iona
l com
pani
es)
sour
ce f
acto
rs, p
rodu
ce a
nd
sell
in v
ario
us c
ount
ries
.
R
easo
ns f
or g
loba
lise
d op
erat
ions
; key
dri
vers
in g
loba
l ec
onom
y, in
clud
ing
role
of
ICT
, tra
nspo
rt a
nd to
uris
m.
F
DI
(for
eign
dir
ect i
nves
tmen
t) a
nd d
evel
opm
ent a
id a
s fa
ctor
s en
cour
agin
g gl
obal
isat
ion.
W
inne
rs a
nd lo
sers
fro
m g
loba
lisa
tion
:
– M
NC
s an
d de
velo
ped
coun
trie
s
– in
tern
atio
nal d
ebt,
com
mod
ity
pric
es a
nd li
ving
sta
ndar
ds
in d
evel
opin
g co
untr
ies
– ef
fect
on
the
deve
lopm
ent g
ap
– im
pact
s on
the
natu
ral e
nvir
onm
ent.
Stud
y of
the
glob
al o
pera
tions
of a
nam
ed M
NC
(MN
Cs i
nclu
de
maj
or b
anks
).
Stud
ents
shou
ld a
lso
unde
rsta
nd th
e ro
le o
f the
gov
ernm
ent i
n gl
obal
isat
ion.
Anal
ysis
and
eva
luat
ion
of m
oder
n ex
ampl
es o
f inw
ard
inve
stm
ent
into
a c
ount
ry o
f you
r cho
ice,
of a
dev
elop
men
t aid
pro
ject
, and
of
the
effe
cts o
f deb
t and
exp
ort p
rice
s for
com
mod
ities
on
livin
g st
anda
rds i
n an
y na
med
dev
elop
ing
coun
try.
2 In
tern
atio
nal
tra
de
Gro
wth
an
d c
han
ge in
inte
rnat
ion
al t
rad
e
S
igni
fica
nce
of tr
ade
in g
oods
and
ser
vice
s:
– fo
r ch
oice
and
com
peti
tion
– fo
r gr
owth
and
GD
P.
F
ree
trad
e an
d pr
otec
tion
: tar
iffs
, quo
tas
and
subs
idie
s fo
r na
tion
al s
ecur
ity
or d
omes
tic
empl
oym
ent r
easo
ns.
The
Law
of C
ompa
rativ
e Ad
vant
age
not r
equi
red.
Stud
ents
shou
ld h
ave
know
ledg
e of
the
adva
ntag
es a
nd
disa
dvan
tage
s of f
ree
trad
e an
d pr
otec
tion.
Basi
c su
pply
and
dem
and
diag
ram
s to
show
the
impa
ct o
f tar
iffs,
subs
idie
s and
quo
tas o
n fo
reig
n tr
ade
are
requ
ired
.
UG
0225
14 –
Spe
cifi
cati
on –
Ede
xcel
Int
erna
tion
al G
CS
E in
Eco
nom
ics
(4E
C0)
– Is
sue
1 –
Apr
il 2
012
© P
ears
on E
duca
tion
Lim
ited
201
2
14
Con
cep
t/id
ea
Con
ten
t Il
lust
rati
ve g
uid
ance
for
tea
cher
s
2 In
tern
atio
nal
tra
de
(con
tinue
d)
Ch
angi
ng
pat
tern
s of
wor
ld t
rad
e:
M
oder
n tr
adin
g bl
ocs
— e
ffec
ts o
f bl
oc o
n m
embe
r an
d no
n-m
embe
r co
untr
ies.
T
he W
TO
(W
orld
Tra
de O
rgan
izat
ion)
and
gro
wth
of
inte
rnat
iona
l tra
de
C
ontr
ast b
etw
een
deve
lope
d an
d de
velo
ping
cou
ntri
es.
Stud
ents
will
nee
d m
oder
n ex
ampl
es o
f the
invo
lvem
ent i
n w
orld
tr
ade
of a
cou
ntry
of y
our c
hoic
e. N
amed
exa
mpl
es o
f reg
iona
l tr
ade
bloc
s.
Stud
ents
shou
ld b
e ab
le to
reca
ll ex
ampl
es o
f WTO
act
ion
and
its
effe
cts.
3 E
xch
ange
rat
es
Th
e w
orld
wid
e si
gnif
ican
ce o
f ex
chan
ge r
ates
F
acto
rs a
ffec
ting
exc
hang
e ra
tes
thro
ugh
dem
and
for
and
supp
ly o
f cu
rren
cies
:
– im
port
s an
d ex
port
s of
goo
ds a
nd s
ervi
ces
– in
tere
st r
ates
– cu
rren
cy s
pecu
lati
on.
Im
pact
of
exch
ange
rat
e ch
ange
s on
:
– im
port
and
exp
ort p
rice
s
– ba
lanc
e of
pay
men
ts o
n cu
rren
t acc
ount
.
C
urre
ncy
depr
ecia
tion
/dev
alua
tion
as
curr
ent a
ccou
nt d
efic
it
poli
cy.
Stud
ents
will
nee
d m
oder
n ex
ampl
es o
f the
wor
ld’s
pri
me
rate
s an
d th
e ex
chan
ge ra
tes o
f a c
ount
ry o
f you
r cho
ice.
Stud
ents
shou
ld b
e ab
le to
dra
w d
eman
d an
d su
pply
dia
gram
s to
anal
yse
exch
ange
rate
det
erm
inat
ion
and
chan
ge. S
tude
nts s
houl
d co
nsid
er th
e ef
fect
of p
rice
ela
stic
ity o
f dem
and
for i
mpo
rts a
nd
expo
rts o
n th
e ba
lanc
e of
pay
men
ts o
n cu
rren
t acc
ount
.
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012 15
Assessment
Assessment summary Paper 1 is externally assessed through an examination paper.
Summary of table of assessment
Paper 1: Economics Paper code: 4EC0/01
The assessment of this qualification is through an examination paper lasting two hours and 30 minutes, set and marked by Edexcel.
Single tier of entry.
The total number of marks available is 120.
Assessment Objectives and weightings % in
International GCSE
AO1: demonstrate knowledge and understanding of the specified subject content
30-35%
AO2: apply knowledge and understanding using appropriate terms, concepts, theories and methods effectively to address problems and issues
30-35%
AO3: select, organise, analyse and interpret information from various sources to analyse problems and issues
15-20%
AO4: evaluate evidence, make reasoned judgements and present conclusions accurately and appropriately.
15-20%
TOTAL 100%
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012
16
Entering your students for assessment
Student entry
Details of how to enter students for this qualification can be found in Edexcel’s International Information Manual, copies of which are sent to all active Edexcel centres. The information can also be found on Edexcel’s international website.
Combinations of entry
There are no forbidden combinations.
Access arrangements and special requirements
Edexcel's policy on access arrangements and special considerations for GCE, GCSE, International GCSE, and Entry Level qualifications aims to enhance access to the qualifications for students with disabilities and other difficulties without compromising the assessment of skills, knowledge, understanding or competence.
Please see the Edexcel website (www.edexcel.org.uk/sfc) for:
the Joint Council for Qualifications (JCQ) policy Access Arrangements and Special Considerations, Regulations and Guidance Relating to Students who are Eligible for Adjustments in Examinations
the forms to submit for requests for access arrangements and special considerations
dates for submission of the forms.
Requests for access arrangements and special considerations must be addressed to:
Special Requirements Edexcel One90 High Holborn London WC1V 7BH
Assessing your students The first assessment opportunity for Paper of this qualification will take place in the June 2011 series and in each following June and January series for the lifetime of the specification.
Your student assessment opportunities
Paper June 2011 January 2012 June 2012 January 2013
Paper 1: Economics
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012 17
Awarding and reporting
The grading, awarding and certification of this qualification will follow the processes outlined in the current GCSE/GCE Code of Practice for courses starting in September 2009, which is published by the Qualifications and Curriculum Authority (QCA). The International GCSE qualification will be graded and certificated on an eight-grade scale from A* to G.
Students whose level of achievement is below the minimum standard for Grade G will receive an unclassified U. Where unclassified is received it will not be recorded on the certificate.
The first certification opportunity for the Edexcel International GCSE in Economics will be 2011.
Students whose level of achievement is below the minimum judged by Edexcel to be of sufficient standard to be recorded on a certificate will receive an unclassified U result.
Language of assessment
Assessment of this specification will be available in English only. Assessment materials will be published in English only and all work submitted for examination and moderation must be produced in English.
Malpractice and plagiarism
For up-to-date advice on malpractice and plagiarism, please refer to the JCQ’s Suspected Malpractice in Examinations: Policies and Procedures document on the JCQ website www.jcq.org.uk/
Student recruitment Edexcel’s access policy concerning recruitment to our qualifications is that:
they must be available to anyone who is capable of reaching the required standard
they must be free from barriers that restrict access and progression
equal opportunities exist for all students.
Progression This qualification supports progression to:
Edexcel AS/Advanced GCE in Economics and AS/Advanced GCE in Economics and Business Studies
Level 3 BTEC Nationals in Business and other qualifications.
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012
18
Grade descriptions Grade descriptions are provided to give a general indication of the standards of achievement likely to have been shown by candidates awarded particular grades. The descriptions must be interpreted in relation to the specification content; they are not designed to define that content. The grade awarded will depend in practice upon the extent to which the candidate has met the Assessment Objectives overall. Shortcomings in some aspects of the assessment may be balanced by better performance in others.
Grade A
Candidates can:
demonstrate in-depth knowledge and critical understanding of the full range of the specification content
apply this knowledge and critical understanding, using terms, concepts, theories and methods effectively to address problems and issues
select and organise information from a wide variety of sources and interpret and use this information effectively to analyse problems and issues with a high degree of accuracy
evaluate evidence, making reasoned judgements, and present conclusions accurately and appropriately.
Grade C
Candidates can:
demonstrate knowledge and understanding of most aspects of the specification content
apply this knowledge and understanding, using terms, concepts, theories and methods appropriately to address problems and issues
select, organise, interpret and use information to analyse problems and issues with some accuracy
make reasoned judgements and present conclusions that are supported by evidence.
Grade F
Candidates can:
demonstrate knowledge and understanding of some aspects of the specification content
apply this knowledge and understanding, using some terms, concepts, theories and methods to address problems and issues
show some ability to select, organise, interpret and use simple information
make judgements and present simple conclusions that are sometimes supported by evidence.
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012 19
Support and training
Edexcel support services Edexcel has a wide range of support services to help you implement this qualification successfully.
ResultsPlus — ResultsPlus is an application launched by Edexcel to help subject teachers, senior management teams, and students by providing detailed analysis of examination performance. Reports that compare performance between subjects, classes, your centre and similar centres can be generated in ‘one-click’. Skills maps that show performance according to the specification topic being tested are available for some subjects. For further information about which subjects will be analysed through ResultsPlus, and for information on how to access and use the service, please visit www.edexcel.org.uk/resultsplus
Ask the Expert — Ask the Expert is a new service, launched in 2007, that provides direct email access to senior subject specialists who will be able to answer any questions you might have about this or any other specification. All of our specialists are senior examiners, moderators or verifiers and they will answer your email personally. You can read a biography for all of them and learn more about this unique service on our website at www.edexcel.org.uk/asktheexpert
Ask Edexcel — Ask Edexcel is Edexcel’s online question and answer service. You can access it at www.edexcel.org.uk/ask or by going to the main website and selecting the Ask Edexcel menu item on the left.
The service allows you to search through a database of thousands of questions and answers on everything Edexcel offers. If you don’t find an answer to your question, you can choose to submit it straight to us. One of our customer services team will log your query, find an answer and send it to you. They’ll also consider adding it to the database if appropriate. This way the volume of helpful information that can be accessed via the service is growing all the time.
Examzone — The Examzone site is aimed at students sitting external examinations and gives information on revision, advice from examiners and guidance on results, including re-marking, re-sitting and progression opportunities. Further services for students — many of which will also be of interest to parents — will be available in the near future. Links to this site can be found on the main homepage at www.examzone.co.uk
Training A programme of professional development and training courses, covering various aspects of the specification and examination, will be arranged by Edexcel. Full details can be obtained from our website: www.edexcel.org.uk
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012
20
Textbooks and resources There are few recent economics textbooks available but the following titles are suitable for the basic theory and concepts. Dictionaries of economics terms are useful for definitions of the concepts contained in the specification. All resources are suggested as possible teaching aids only, and are not required reading for the course. The internet is valuable as a tool for research and learning. There is a variety of aids for students and teachers, including revision notes and case studies for the UK GCSE which can be adapted for International GCSE.
Please note that while resources are checked at the time of publication, materials may be withdrawn from circulation and website locations may change at any time.
Textbooks
Anderton A — Economics for GCSE, 2nd Edition (Collins, 1993) ISBN 0003274292
Bannock G — The Penguin Dictionary of Economics (Penguin, 1999) ISBN 0140513760
Black J — A Dictionary of Economics (Oxford Paperbacks, 1997) ISBN 0192800183
Moynihan D and Titley B — Economics: A Complete Course, 3rd Edition (Oxford University Press, 2001) ISBN 0199134138
Paisley and Quillfeldt — GCSE Economics (Longman, 1987) ISBN 0582005205
Pass C — Collins Dictionary of Economics (HarperCollins, 2000) ISBN 0004724739
Pratten J — GCSE Economics (Liverpool Academic Press, 2001) ISBN 1872807739
Websites
General websites
www.bbc.co.uk As well as topical issues there is also an education section.
www.bized.ac.uk Originally designed for business studies and now incorporates a wealth of useful information for both teachers and students.
www.s-cool.co.uk Although only available for AS/A level, many topics also apply to the International GCSE specification and are dealt with simply with revision questions.
www.tutor2u.net Originally for AS/A2 but developing more resources for GCSE level.
Current economic issues and statistical data
www.ebea.org.uk designed for teachers developing materials for themselves and students
www.economist.com Economist magazine
www.ft.com Financial Times newspaper
www.guardian.co.uk Guardian newspaper
UG022514 – Specification – Edexcel International GCSE in Economics (4EC0)
– Issue 1 – April 2012 © Pearson Education Limited 2012 21
UK data
www.bankofengland.co.uk For information on current interest rates and the UK’s financial system.
www.direct.gov.uk The website of the UK government, providing information for citizens from various government departments.
www.hm-treasury.gov.uk The UK’s economic and finance ministry. Access to budget reports and policy information.
www.statistics.gov.uk Holds all national statistics, for example economy, census, population, labour market.
World data
www.europa.eu.int/en/comm Holds statistics on all nations in the European Economic /eurostat Community.
www.oecd.org The website holds comparable statistics, economic and social data from countries committed to democracy and market economy.
www.worldbank.org Source of loans, credits and grants to developing countries. Website has a section on world data and research.
www.wto.org The World Trade Organization deals with rules of trade between nations. Includes a section on trade statistics.
Db010512G:\WordProc\LT\PD\International GCSEs\UG022514 International GCSE in Economics (4EC0) Spec SAMs\UG022514 International GCSE in Economics (4EC0).doc.1-25/0
International GCSE
Economics (4EC0)
Sample Assessment Material
First examination 2011
Examiner’s use only
Team Leader’s use only
Surname Initial(s)
Signature
Centre No.
Turn over
Candidate No.
Paper Reference(s)
4EC0/01Edexcel International GCSEEconomicsPaper 1Sample Assessment MaterialTime: 2 hours 30 minutes
Materials required for examination Items included with question papersCalculator Nil
Instructions to CandidatesIn the boxes above, write your centre number, candidate number, your surname, initials and signature. Check that you have the correct question paper.Answer ALL the questions. Write your answers in the spaces provided in this question paper.Some questions must be answered with a cross in a box ( ).If you change your mind about an answer, put a line through the box ( ) and then mark your new answer with a cross ( ).
Information for CandidatesThe marks for individual questions and the parts of questions are shown in round brackets: e.g. (2).There are 4 questions in this question paper. The total mark for this paper is 120. There are 24 pages in this question paper. Any blank pages are indicated.Calculators may be used.
Advice to CandidatesWrite your answers neatly and in good English.You are advised to spend the same amount of time on each of the 4 questions.
Paper Reference
4 E C 0 0 1
This publication may be reproduced only in accordance with Edexcel Limited copyright policy. ©2008 Edexcel Limited.
Printer’s Log. No.
N34417AW850/U4350/57570 3/3/2/2/2/2/1
*N34417A0124*
Question Leave Number Blank
1
2
3
4
Total
Leave blank
Answer ALL questions
1. Study the information given in Figure 1.
2005–2012 (estimated change)
Demand for diamonds +50%
Supply of diamonds No change
Price of diamonds +30%
Figure 1
Figure 2, below, represents the market for diamonds.
q Quantity
Price
p
Figure 2
(a) (i) On Figure 2, label the demand curve, D, and the supply curve, S.(2)
(ii) Using Figure 2, draw a new demand curve to show the change estimated in Figure 1. Label the new demand curve D1 and the new price P1.
(2)
(iii) Identify two reasons why the demand for diamonds might change by +50%.
1 .............................................................................................................................
................................................................................................................................
2 .............................................................................................................................
................................................................................................................................(2)
Leave blank
(iv) Using the information given in Figure 1, estimate the elasticity of supply for diamonds.
A –1
B 0
C +1
D +1.6(1)
(v) Explain why you have chosen your answer to (a) (iv):
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
Leave blank
(b) The diagram below shows a production possibility curve for a country.
Capital goods
B
A
O C D Consumer goods
(i) Give one example of a consumer good and one example of a capital good.
consumer good .......................................................................................................
capital good ...........................................................................................................(2)
(ii) The opportunity cost of increasing the production of capital goods from OA to OB is:
A OC
B CD
C AB
D OD(1)
(iii) Which possible combination of capital goods and consumer goods is more likely to generate economic growth?
A OB/OC
B OA/OD
C OB/OD
D OA/OC(1)
Leave blank
(iv) Explain why you have chosen your answer to (b) (iii):
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
(c) (i) Botswana is one of the world’s largest producers of diamonds. It has a mixed economy. Identify two characteristics of a mixed economy.
1 .............................................................................................................................
................................................................................................................................
................................................................................................................................
2 .............................................................................................................................
................................................................................................................................
................................................................................................................................(2)
(ii) Consider an economy of your choice. To what extent can it be described as a mixed economy?
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6)
Leave blank
(d) (i) Introducing a minimum wage level above the previous equilibrium wage will:
A increase employment
B reduce inflation
C increase pay for some workers
D not affect pay levels(1)
(ii) Examine two effects that minimum wage control may have on the labour market.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6) Q1
(Total 30 marks)
Leave blank
2. Alan Wong is a taxi driver. Like many other taxi drivers in his city, he owns his taxi and runs his own business. His monthly costs, and the total number of customers per month, are shown in Figure 3.
Costs June$
July$
Petrol 200 350Loan repayment 100 100Insurance 60 60Licence fee 50 50Advertising 40 40Telephone charges 50 70
June JulyNumber of customers 250 300
Figure 3
(a) (i) Using Figure 3, Alan’s total costs for June were:
A $250
B $400
C $500
D $750(1)
(ii) Alan’s total costs for July were:
A $300
B $370
C $510
D $670(1)
(iii) Calculate Alan’s average cost per customer for June. Show your working.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
Leave blank
(iv) Define variable cost and give an example from Figure 3 of a variable cost.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
(v) Define fixed cost and give an example from Figure 3 of a fixed cost.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
(vi) One reason why firms such as Alan’s may remain small is:
A economies of scale
B horizontal integration
C technological advances
D lack of capital(1)
(vii) Explain why you have chosen your answer to (a) (vi).
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
Leave blank
(b) Alan’s customers sometimes travel by public sector transport. Public sector transport systems are owned by:
A Individuals
B Private sector
C The State
D Tertiary sector(1)
(c) In a nearby city The Red Taxi Company has a monopoly.
(i) Identify two main features of a monopoly.
1 .............................................................................................................................
................................................................................................................................
2 .............................................................................................................................
................................................................................................................................(2)
(ii) A monopoly can be both good and bad for customers. Explain why this is, giving reasons for your answer.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6)
Leave blank
(d) (i) Briefly explain two ways in which a government can promote competition in an economy.
1 .............................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
2 .............................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(4)
Leave blank
(ii) To what extent have government measures to promote competition been successful in a country of your choice?
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6) Q2
(Total 30 marks)
Leave blank
3. Study Figure 4 below, and answer the following questions.
Income $ per year $ per year taken in tax
Tax A Tax B Tax C10 000 1 000 1 000 1 00020 000 2 000 2 500 1 00030 000 3 000 4 000 1 00040 000 4 000 6 000 1 000
Figure 4
(a) (i) Which of these taxes is proportional:
A A
B B
C C
D none(1)
(ii) Which of these taxes is progressive:
A A
B B
C C
D none(1)
(iii) Explain why you have chosen your answer to (a) (ii):
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
Leave blank
(b) (i) Define ‘indirect taxation’. Give an example.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
(ii) Identify two ways, other than taxation, in which a government can raise revenue.
1 .............................................................................................................................
................................................................................................................................
2 .............................................................................................................................
................................................................................................................................(2)
(iii) Raising revenue by taxation is part of which type of policy?
A Monetary Policy
B Fiscal Policy
C Supply Side Policy
D None of the above (1)
Leave blank
(c) (i) What is meant by inflation?
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
(ii) ‘During periods of inflation there are winners and losers.’ Do you agree with this statement? Justify your answer.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6)
Leave blank
(iii) One policy to reduce the rate of inflation is raising the rate of interest. Assess the effects of this policy on other economic objectives.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6)
Leave blank
(d) (i) Government policies targeting environmental protection can include:
A subsidies for car ownership
B subsidies for environmentally friendly power generation
C taxes on income
D taxes on profits(1)
(ii) Explain why you have chosen your answer to (d) (i).
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
(iii) Assess the effectiveness of raising taxes on petrol and diesel fuel as a way of protecting the environment.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(4) Q3
(Total 30 marks)
Leave blank
4. The Multi-Fibre (M-F) Agreement set a limit on the number of textile imports from developing countries to Europe. This agreement ended in 2005. Figure 5 below shows some changes after the agreement ended.
China: Lower costs in clothing manufacturing led to a rapid increase in clothing exports.
Philippines: Export earnings from clothing fell by 50%.
Cambodia: Clothing accounted for 90% of export earnings before 2005. Since 2005, 20 000 workers have been laid off.
European Union (EU): Cheap imports from China are forecast to eventually lead to 250 000 job losses.
Figure 5
(a) Study the information given in Figure 5.
(i) One effect on the Philippines is likely to be:
A balance of trade surplus
B increase in economic growth
C rise in pollution
D increase in unemployment(1)
(ii) The effects of ending the M-F Agreement in the EU are likely to include:
A more expensive clothes and more unemployment
B more expensive clothes and less unemployment
C cheaper clothes and more unemployment
D cheaper clothes and less unemployment(1)
(iii) Explain why you have chosen your answer to (a) (ii).
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
Leave blank
(b) (i) What type of trade restriction was the Multi-Fibre Agreement? Place a cross in the correct box.
A Quota
B Tariff
C Subsidies
D Cartel
(1)
(ii) On Figure 6 below, show how the introduction of tariffs can reduce imports of a good.
Price
Quantity
Supply of imported good
Demand for imported good
Figure 6
(3)
(iii) Explain how the introduction of tariffs, as you have shown on diagram Figure 6, can reduce the imports of a good.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
Leave blank
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(3)
(c) Explain what is meant by a trading bloc.
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................(2)
(d) Study Figure 7 below.
Figure 7
(i) Using the data in Figure 7, the balance of trade will be
A – $50m
B – $30m
C + $30m
D + $50m(1)
(ii) Explain why you have chosen your answer to (d) (i):
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
$m Visible exports 250 Visible imports 300 Invisible exports 270 Invisible imports 250
Leave blank
(e) In 2005 the government of India stopped Tesco, a large British supermarket chain, opening supermarkets in India. The main reason given for this decision was that it would lead to a huge loss of employment in small retail shops.
(i) Examine reasons why a British supermarket chain may wish to open stores in a foreign country.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6)
(ii) Apart from a loss of employment, identify two other reasons why a government might stop a foreign supermarket chain opening in its country.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(2)
Leave blank
(iii) Assess the case for and against allowing multinational retailers to operate in a country of your choice.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................(6)
TOTAL FOR PAPER: 120 MARKS
END
Q4
(Total 30 marks)
BLANK PAGE
BLANK PAGE
BLANK PAGE
Further copies of this publication are available from:
Edexcel Publications Adamsway Mansfield Nottingham NG18 4FN
Tel: 01623 467467
Fax: 01623 450481
Email: [email protected] [email protected]
For more information on Edexcel and BTEC qualifications please visit our website: www.edexcel.com
Pearson Education Limited. Registered in England and Wales No. 872828 Registered Office: Edinburgh Gate, Harlow, Essex CM20 2JE VAT Reg No GB 278 537121
Publication code UG022514
