Paper 4: A Level Data Response and Essays · 9708/42

Cambridge International (CAIE) A-level Paper 4, March 2023

All 8 written questions from Cambridge International (CAIE) A-level Paper 4 (March 2023), A Level Data Response and Essays. Case studies: Increasing public sector debt is a good policy. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Section A

Case study

Increasing public sector debt is a good policy

In the extracts: GDP, Japan, United Kingdom, UK Finance

Q1(a)State3 marks

State what is meant by ‘a recession’.

TopicEconomic growth and sustainability

Question paper p.3 Mark scheme p.8 Examiner report p.8 Open in the tool

Q1(b)Analyse5 marks

Analyse why governments borrow and why it is said that a government should increase spending in a recession.

TopicEffectiveness of policy options to meet all macroeconomic objectives

Question paper p.3 Mark scheme p.8 Examiner report p.8 Open in the tool

Q1(c)Consider6 marks

Consider what is meant by the phrase ‘government borrowing could ‘crowd out’ the private sector.’

TopicEffectiveness of policy options to meet all macroeconomic objectives9.3 Employment and unemployment

Question paper p.3 Mark scheme p.8 Examiner report p.8 Open in the tool

Q1(d)Assess6 marks

Assess whether the evidence in the article makes a conclusive case that the high level of government borrowing is an effective policy.

TopicEffectiveness of policy options to meet all macroeconomic objectives9.3 Employment and unemployment

Question paper p.3 Mark scheme p.8 Examiner report p.8 Open in the tool

Section B

Q2OptionalAssess20 marks

The use of air travel leads to market failure caused by negative externalities. With the help of a diagram, assess the extent to which a government can intervene to correct this market failure.

TopicGovernment policies to achieve efficient resource allocation and correct market failure7.4 Private costs and benefits, externalities and social costs and benefits

Question paper p.3 Mark scheme p.9 Examiner report p.9 Open in the tool Draw it: negative externality diagram

Q3OptionalEvaluate20 marks

Some firms in oligopoly markets choose to collude rather than engage in price competition. This will lead to higher prices and a less efficient allocation of resources. Evaluate this statement.

TopicDifferent market structures7.3 Efficiency and market failure

Question paper p.3 Mark scheme p.11 Examiner report p.9 Open in the tool Practise the monopoly diagram Practise the kinked demand diagram

Section C

Q4OptionalEvaluate20 marks

Expenditure-reducing policies will reduce a balance of payments deficit but will also cause significant unemployment. Evaluate this statement.

TopicPolicies to correct disequilibrium in the balance of payments9.3 Employment and unemployment

Question paper p.3 Mark scheme p.13 Examiner report p.10 Open in the tool

Q5OptionalAssess20 marks

Assess the impact of globalisation on the standard of living in low-income countries.

TopicGlobalisation11.3 Economic development11.4 Characteristics of countries at different levels of development

Question paper p.3 Mark scheme p.14 Examiner report p.10 Open in the tool

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Section A

Increasing public sector debt is a good policy

Section B

Section C

Other years of Cambridge International (CAIE) A-level Paper 4

Topics on this paper