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Mark Scheme (Results) October 2020

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0% found this document useful (0 votes)
286 views30 pages

Mark Scheme (Results) October 2020

Uploaded by

anonymous Lee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Mark Scheme (Results)

October 2020
Pearson Edexcel International Advanced
Subsidiary
In Economics (WEC11/01)
Unit 1: Markets in action
Edexcel and BTEC Qualifications

Edexcel and BTEC qualifications are awarded by Pearson, the UK’s largest awarding body.
We provide a wide range of qualifications including academic, vocational, occupational and
specific programmes for employers. For further information visit our qualifications websites
at www.edexcel.com or www.btec.co.uk. Alternatively, you can get in touch with us using the
details on our contact us page at www.edexcel.com/contactus.

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www.pearson.com/uk

Autumn 2020
Publications Code WEC11_01_2010_msc
All the material in this publication is copyright
© Pearson Education Ltd 2020
General Marking Guidance

• All candidates must receive the same


treatment. Examiners must mark the first candidate
in exactly the same way as they mark the last.
• Mark schemes should be applied positively.
Candidates must be rewarded for what they have
shown they can do rather than penalised for
omissions.
• Examiners should mark according to the mark scheme
not according to their perception of where the grade
boundaries may lie.
• There is no ceiling on achievement. All marks on the
mark scheme should be used appropriately.
• All the marks on the mark scheme are designed to be
awarded. Examiners should always award full marks if
deserved, i.e. if the answer matches the mark
scheme. Examiners should also be prepared to award
zero marks if the candidate’s response is not worthy of
credit according to the mark scheme.
• Where some judgement is required, mark schemes
will provide the principles by which marks will be
awarded and exemplification may be limited.
• When examiners are in doubt regarding the
application of the mark scheme to a candidate’s
response, the team leader must be consulted.
• Crossed out work should be marked UNLESS the
candidate has replaced it with an alternative response.
Section A
Question Quantitative skills assessed Answer Mark
Number
1 The only correct answer is A
B is not correct because the subsidy
would lead to increased quantity and
external costs- the government role is to
reduce external costs
C is not correct because the tax on the
good would lead to decreased quantity
and a reduction in external benefits- the
government role is to reduce external
costs
D is not correct because this is a
government failure and not a role
of the government (1)
2 – The only correct answer is C
A is not correct because this is a
government failure
B is not correct because diminishing
marginal utility occurs in any normally
functioning market
D is not correct because this is a
government failure (1)
3 QS9: Interpret, apply and The only correct answer is B
analyse information in
A is not correct because this would be
written, graphical, tabular
the result of an increase in productive
and numerical forms
capacity
C is not correct because the movement
to y is unattainable given current
resources
D is not correct because position y
would imply that some resources
are unemployed

(1)
4 – The only correct answer is C
A is not correct because if consumers
were good at computation they would
calculate the benefits of switching and
be more likely to switch
B is not correct because if they
maximised utility they would switch to
the cheaper deal
D is not correct because if
consumers feel valued by
alternative providers they would
switch to them (1)
5 QS9: Interpret, apply and The only correct answer is D
analyse information in
A is not correct because this area
written, graphical, tabular
represents part of the fall in total
and numerical forms
revenue for firms
B is not correct because total revenue
falls by the area PeUVP1 and VUQeQ1
C is not correct because this area
shows producer surplus and not
consumer surplus (1)
6 QS9: Interpret, apply and The only correct answer is A
analyse information in
B is not correct because this represents
written, graphical, tabular
the total government spending
and numerical forms
C is not correct because this is the total
revenue earned by firms from
customers
D is not correct because this is the
total revenue earned by firms from
both customers and the
government subsidy (1)
Section B
Question Answer Mark
Number
7 Knowledge 1, Application 3
Quantitative skills assessed:
QS4: Construct and interpret a range of standard graphical forms
QS9: Interpret, apply and analyse information in written,
graphical, tabular and numerical forms.

Knowledge

1 mark for showing knowledge on the diagram:


• Supply and demand curves drawn accurately with equilibrium
quantity and price (1)

Application
1 mark for the following included on diagram:
• Maximum price below the equilibrium price (1)

1 mark for either of the following:


• New quantity supplied (QS) and new quantity demanded (QD)/
Demand extends and supply contracts (1)

1 mark for identifying the overall impact:


• Excess demand/ shortage identified on diagram (1)
(4)
Question Answer Mark
Number
8 Knowledge 2, Application 2

Knowledge
1 mark for defining ‘positive statement.’
• Value free/ can be verified with evidence/ objective/ based on
facts (1)
1 mark for defining ‘normative statement.’
• Based on value judgement/ cannot be verified or proven/
subjective (1)

Application
2 marks for applying to the statements e.g.:
• Statement 1 is positive as you can verify whether $140bn was
spent on renewable subsidies / $260bn was spent on non-
renewable subsidies/ check if the government subsidised (1)
• Statement 2 is normative as the word ‘should’ shows it is a
value judgement/ suggests a course of action based on a
person’s value judgement (1) (4)
Question Answer Mark
Number
9 Knowledge 1, Application 1, Analysis 2

Knowledge
1 mark for defining regulation, e.g.:
• rules or laws put in place to influence behaviour (1)
Or
1 mark for identifying an impact e.g.:
• The quantity consumed will fall
• The revenue earned by energy drink manufacturers will fall
• Government failure/ Unintended consequences may occur
• Lower costs of treating health problems caused by energy drinks
• Consumers will substitute to alternatives (1)

Application
Up to 1 mark for applying to energy drink market, e.g.:
• Children/ Those under 18 will be prohibited from purchasing
energy drinks (1)
Analysis
Up to 2 marks for explaining the likely impact e.g.:
• The quantity consumed will fall as the quantity of customers falls
with under 18s now unable to buy (1) leading to contracting
supply / caused by decreased demand (1)
• The revenue earned by energy drink manufacturers will fall as
they will no longer sell products to those under the age of 18 (1)
thus a smaller number is multiplied by the price and revenue falls
(1)
• Government failure/ Unintended consequences may occur as
under 18s move to the informal sector to get access to these
products (1) and some of this supply may be of inferior quality (1)
• Fewer health problems caused by energy drinks meaning less
need for health services (1) and lowering the cost to the
government (1)
• The Government will have costs associated with monitoring and
policing the regulation (1) these costs will incur an opportunity
costs to the government as they cannot spend these funds
elsewhere (1)
• Consumers will no longer consume energy drinks and will buy
alternatives instead (1) increasing demand and revenue for the
firms (1)
• Diagram showing leftwards shift of demand curve (1) and
corresponding impact on both lower quantity and lower price (1) (4)
Question Answer Mark
Number
10 Knowledge 1, Application 3
Quantitative skills assessed:
QS8: Make calculations of elasticity and interpret the result.

Knowledge
1 mark for the formula for income elasticity of demand:
% change in quantity demanded
% change in income
OR
1 mark for identifying that the good is a normal good
• e.g. In Singapore, new car sales are a normal good as when
income rises, quantity demanded rises. (1)

Application
Up to 3 marks for calculations:
• Change in quantity ÷ original quantity
3 023 ÷ 109 091 x 100 = 2.77% (1)
• Change in income ÷ original income
1236 ÷ 65 796 x 100 = 1.88% (1)
• % Change in quantity ÷ % change in income
2.77% ÷ 1.88% = 1.47 (1)

If candidate does not complete any rounding they will calculate


1.48
Accept responses to 1dp, 2dp, 3dp 4dp etc.

NB: if correct answer (e.g. 1.47, 1.48, 1.5) is given, award full
marks regardless of working (4)
Question Answer Mark
Number
11 Knowledge 1, Application 1, Analysis 2
Quantitative skills assessed:
QS4: Construct and interpret a range of standard graphical forms
QS8: Make calculations of elasticity and interpret the result.

Knowledge
1 mark for definition/formula of cross elasticity of demand e.g.:
Responsiveness of demand for one product to a change in the price
of another product
Or
% change in quantity demanded of good x
% change in price of good y (1)

Application
1 mark for identifying that Pepsi cola and Coca Cola are substitutes
• The XED is positive and therefore they are substitutes. (1)

Analysis
Up to 2 marks for likely impact on Pepsi cola

• An increase in demand (1) of 12.4% (1.24 x 10) (1)


NB accept rounded figures
OR
(4)
• For showing increase in demand (1)
• For showing increase in equilibrium price/ quantity (1)
Or
• Verbal description of impact of increase in price of Coca Cola on
demand for Pepsi cola
• As the price of Coca Cola increases consumers will substitute to
the relatively cheaper Pepsi cola causing the demand to increase
(1) the percentage increase will be greater than 10 as the cross
elasticity is elastic (1)
• Close substitutes (1) so the impact so will result in a more than
proportionate impact (1)
Section C
Question Answer Mark
Number
12 (a) Knowledge 2
Up to 2 marks for defining ‘equilibrium’, e.g.:
• Where the market is in balance (1)
• Where supply and demand intersect/ meet/ situation where
supply and demand are matched (1)
• Leading to a stable price (1)
• Determines the market price/ quantity sold (1)
• Set by the free market/ price mechanism (1)
• Price consumers willing to buy at is the same as the price
producers are willing to sell at (1)
• Leads to an efficient allocation of resources (1)
(2)

Question Answer Mark


Number
12 (b) Knowledge 2 Application 2
Quantitative skills assessed:
QS9: Interpret, apply and analyse information in written,
graphical, tabular and numerical forms
Knowledge
Up to 2 marks for definitions:
• Substitutes are goods with a positive cross elasticity of
demand/ two goods that meet the same need (1)
• Price elasticity of demand is the responsiveness of quantity
demanded to a change in price/ or formula (1)
• Elastic demand is where a change in price leads to a
proportionally larger change in quantity demanded/ diagram
showing elastic demand (1)

Application
Up to 2 mark for application to Extract A
• Competing vegetable oils such as rapeseed, soybean and
sunflower
OR
Crude oil is a substitute for palm oil (used in biodiesel) (1)
• With so many substitutes an increase in the price of palm oil
would see customers substitute to alternative- crude oil/
rapeseed/ soybean/ sunflower oil (1) meaning demand will be
relatively elastic / cause the PED to increase (1) (4)
Question Answer Mark
Number
12 (c) Knowledge 2, Application 2, Analysis 2
Quantitative skills assessed:
QS4: Construct and interpret a range of standard graphical forms
QS9: Interpret, apply and analyse information in written,
graphical, tabular and numerical forms

Knowledge
Up to 2 marks for the diagram showing:
• Original supply and demand curves and equilibrium (1)
• Where a candidate correctly shifts supply to the right or
demand curve to the left (1)

Application
1 marks for one demand factor:
Causing leftward shift in the demand curve:
• Price of competing oils/ soya/ rapeseed/ sunflower have
fallen (1)
• Lower crude oil prices, substitute for palm oil/ biodiesel (1)
1 marks for one supply factor:
Causing rightward shift in the supply curve:
• More produced/ abundant supply (1)

Analysis
Up to 2 marks for development of how reason(s) leads to lower
prices, e.g.:
• Where a candidate has shifted the second curve correctly
e.g. rightwards shift in supply AND leftwards shift in demand
(1).
• Final equilibrium following shift in both supply and demand
(1)
(6)
Question Answer Mark
Number
12 (d) Knowledge 2, Application 2, Analysis 2, Evaluation 2
QS9: Interpret, apply and analyse information in written,
graphical, tabular and numerical forms

Knowledge
Up to 2 marks for knowledge of PES, e.g.:
• Definition of price elasticity of supply: responsiveness of quantity
supplied to a change in price (1)
• Price elastic supply- value of PES greater than 1/ where there is a
more than proportionate change in supply in response to a
change in price/ Diagram illustrating elastic supply (1)
• Price inelastic supply- value of PES between 0 and 1/ where there
is a less than proportionate change in supply in response to a
change in price/ Diagram illustrating inelastic supply (1)

Application and analysis


Up to 2 marks for each reference to the given sources and linked
explanations with a maximum of 4 marks e.g.:
• With the stockpile any increase in price can be responded to with
the release from the stockpile suggesting elastic supply (1+1)
• Harvesting only twice a year suggests that when price rises there
could be a delay before harvesting takes place, suggesting supply
is inelastic (1+1)
• Harvesting more than once a year suggests that suppliers can
respond quickly to changes in price, suggesting supply is more
elastic (1+1)
• It can take 30 months from planting a tree for it to produce fruits
suggesting a long delay and inelastic supply (1+1)
• Only limited number of countries produce palm oil so when price
raises only limited number of countries can increase supply
meaning inelastic (1+1)

Candidates may present an argument for elastic or inelastic for


KAA and be rewarded for the alternative as Evaluation.

Evaluation
Up to 2 marks for evaluative comments, e.g.:
• The supply will be relatively inelastic in the short run and become
more elastic in the long run as factors become variable (1+1) (8)
• The size of the price change will be important in determining how
much supply will respond/ the larger change of price at -25.94%
suggests a greater influence on supply (1+1)
• Factors such as the weather can have a significant impact on the
ability to respond with supply (1+1)
• New technologies could help increase production enabling supply
to respond better (1+1)
Question Indicative content
Number
12 (e) Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance.
The indicative content below exemplifies some of the points that candidates
may make but this does not imply that any of these must be included. Other
relevant points must also be credited.
Quantitative skills assessed
QS4: Construct and interpret a range of standard graphical forms
QS9: Interpret, apply and analyse information in written, graphical, tabular and
numerical forms

Knowledge, Application and Analysis (8 marks) – indicative content

Externalities- where third parties are affected by a transaction negatively or


positively

External costs
• Definition of ‘external cost’ – where there are negative impact on third
parties

Diagram showing external costs


• Producers consider their private costs
• Producers ignore impacts on third parties/ external costs
• Producers are undervaluing the costs of producing palm oil
• The market equilibrium price, Pe is below the social optimum price, P1.
• The market equilibrium quantity, Qe is above the social optimum quantity,
Q1- there is overconsumption
• The welfare loss is indicated by the welfare loss triangle as shaded.
• The rapid and poorly managed expansion of production has caused large
scale deforestation- loss of biodiversity/ loss of potential medicines- future
generations affected through this loss/ less oxygen in environment- causing
health issues and costs to health services/ greater risk of flooding affecting
farmers and the local community
• Caused significant greenhouse gas emissions from the destruction and
burning of rainforests- may lead to global warming and health issues- third
party Government affected by spending on healthcare
• In Indonesia and Malaysia production has caused habitat and biodiversity
loss- third party affecting animals and humans through loss of medicines
• Third party affected- endangered animals population of orangutans reduced
by 100 000. 69% of the elephant’s habitat has been lost, there are only 100
rhinos left

External benefits
• Definition of ‘external benefits’ – where there are positive impact on third
parties
• Diagram showing external benefits
• Consumers consider their private benefits
• Consumers ignore impacts on third parties/ external benefits
• Consumers are undervaluing the benefit of palm oil
• The market equilibrium price, PME is below the social optimum price, PSO/ The
market equilibrium price PME is below the social optimum price PSO.
• The market equilibrium quantity, QME is below the social optimum quantity,
QSO- there is underconsumption
• The welfare gain that can be achieved by moving to social optimum is
shaded/ labelled
• 36 000 000 tonnes produced in Indonesia/ 21 000 000 tonnes produced in
Malaysia will generate substantial export income helping to fund the import
of more capital goods helping to boost long term growth for all
• Private benefit of palm oil production tripling between 1998 and 2018-
generating more revenue creates an external benefit as firms spent more
within economy
• The palm oil sector employs 4.7 million in Malaysia and Indonesia, with these
workers spending more money within their economies
• A further 11 million are employed in the two countries who are indirectly
dependent on the sector
Positive or negative externalities may be offered as KAA and evaluation
may consider the other type of externality
Level Mark Descriptor
0 No rewardable material
Level 1 1–3 Displays isolated, superficial or imprecise knowledge and
understanding of economic terms, principles, concepts, theories and
models.
Use of generic material or irrelevant information or inappropriate
examples.
Descriptive approach, which has no chains of reasoning.
Level 2 4–6 Displays elements of knowledge and understanding of economic
terms, principles, concepts, theories and models.
Ability to apply knowledge and understanding to some elements of the
question. Some evidence and contextual references are evident in
the answer.
Chains of reasoning in terms of cause and/or consequence are evident
but they may not be developed fully or some stages are omitted.
Level 3 7–8 Demonstrates accurate and precise knowledge and understanding of
economic terms, principles, concepts, theories and models.
Ability to link knowledge and understanding in context using relevant
examples which are fully integrated to address the broad elements of
the question.
Analysis is clear, coherent, relevant and focused. The answer
demonstrates logical and multi-stage chains of reasoning in terms of
cause and/or consequence.

Evaluation (6 marks) – indicative content


• Magnitude of external benefit/ external costs
• Magnitude of welfare gain/loss- with high levels of production welfare
losses/ gains significant
• Measurement – it is hard to measure the external benefits/ costs of
production
• Weighing of the external benefits with external costs
• Short term little external costs or benefits noticed but long term these may
be more noticeable/significant
• Palm oil requires one-tenth as much land as soybean production so causing
less damage to land- lower external costs
• One-seventh of the fertiliser used compared to soybean, so less impact on
quality of water supply and damage to animals
• One-sixth of the energy to produce the same amount of soybean, so less
external costs when less energy produced
Level Mark Descriptor
0 No rewardable material.
Level 1 1–2 Identification of generic evaluative comments.
No supporting evidence/reference to context.
No evidence of a logical chain of reasoning.
Level 2 3–4 Evidence of evaluation of alternative approaches.
Some supporting evidence/reference to context.
Evaluation is supported by a partially-developed chain of reasoning.
Level 3 5–6 Evaluation recognises different viewpoints and/or is critical of the
evidence.
Appropriate reference to evidence/context.
Evaluation is supported by a logical chain of reasoning.
Section D
Question Indicative content
Number
13 Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance.
The indicative content below exemplifies some of the points that candidates
may make, but this does not imply that any of these must be included. Other
relevant points must also be credited.

Knowledge, application and analysis (12 marks) – indicative content


• Indirect tax– expenditure tax
• Ad valorem tax- defined
• Specific tax- defined
• Increases costs of production of firms selling petrol
• Supply falls
• Customers pay a higher price
• The quantity consumed will be lower
• Less external costs associated with petrol consumption/ production
• People may buy in cheaper countries like Germany/ may lead to
smuggling- Germany may benefit and the Netherlands lose out
• Government failure if costs associated with intended consequences
exceed benefits of reduced consumption
• Incentive to substitute to hybrid/ electric/ hydrogen powered vehicles/
public transport/ bikes/ walking
• Government revenue earned- can be used to fund improvements in
public transport and roads
• Increased demand for public transport
• Impact on sectors reliant on road transport
• Diagram may show ad valorem or specific tax
Impact on business
• Price received by the business is lower at A
• Quantity lower at Q1
• Incidence of tax on producer per unit – AP/ Producer incidence ABFP
• Reduced producer surplus

Impact on consumers
• Price paid higher at P1
• Incidence of tax on consumer per unit - PP1/ consumer incidence CFPP1
• Reduced consumer surplus

Impact on government
• Government revenue ABCP1
• Funds that can be used elsewhere- e.g. roads
Level Mark Descriptor
0 No rewardable material.
Level 1 1–3 Displays isolated, superficial or imprecise knowledge and
understanding of economic terms, principles, concepts, theories and
models.
Use of generic material or irrelevant information or inappropriate
examples.
Descriptive approach which has no chains of reasoning.
Level 2 4–6 Displays elements of knowledge and understanding of economic
terms, principles, concepts, theories and models.
Limited application of knowledge and understanding to economic
problems in context.
A narrow response or superficial, only two-stage chains of reasoning in
terms of cause and/or consequence.
Level 3 7–9 Demonstrates accurate knowledge and understanding of economic
terms, principles, concepts, theories and models.
Ability to apply knowledge and understanding to some elements of the
question. Some evidence and contextual references are evident in the
answer.
Analysis is clear and coherent. Chains of reasoning in terms of cause
and/or consequence are evident but they may not be developed fully
or some stages are omitted.
Level 4 10–12 Demonstrates accurate and precise knowledge and understanding of
economic terms, principles, concepts, theories and models.
Ability to link knowledge and understanding in context, using
appropriate examples which are fully integrated to address the broad
elements of the question.
Analysis is clear, coherent, relevant and focused. The answer
demonstrates logical and multi-stage chains of reasoning in terms of
cause and/or consequence.
Evaluation (8 marks) – indicative content
• Magnitude- 68% of the price charged is indirect tax- significant impact
• Germany at just 59% may make it attractive to purchase in Germany but
only for those close to border
• Changed in behaviour to alternative fuels may take a very long term
• Demand is likely to be highly inelastic so even if tax means higher price
the quantity demanded will fall less than proportionately
• Tax evasion/ avoidance may reduce tax revenues
• Difficult to measure the correct indirect tax that should be charged
• Electric cars may still be significantly more expensive than petrol cars so
there will be little impact on the demand for petrol
• Public transport is less convenient for the consumer leading to less
consumer substituting
• Depends on how significant petrol taxes are as a proportion of total
business costs e.g. significant issue for logistics/delivery companies
• Impact of the tax may affect those on different income levels differently

Level Mark Descriptor


0 No rewardable material.
Level 1 1–3 Identification of generic evaluative comments.
No supporting evidence/reference to context.
No evidence of a logical chain of reasoning.
Level 2 4–6 Evidence of evaluation of alternative approaches.
Some supporting evidence/reference to context.
Evaluation is supported by a partially-developed chain of reasoning.
Level 3 7–8 Evaluation recognises different viewpoints and/or is critical of the
evidence, leading to an informed judgement.
Appropriate reference to evidence/context.
Evaluation is supported by a logical chain of reasoning.
Question Indicative content
Number
14 Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance.
The indicative content below exemplifies some of the points that candidates
may make but this does not imply that any of these must be included. Other
relevant points must also be credited.

Knowledge, application and analysis (12 marks) – indicative content


• Asymmetric information- where one party has more information than
another
• Information gap- where consumers lack information about the risks of
being uninsured
• 10 million consumers not taking out travel insurance may lack
information to make decision to be insured
• 30% of consumers have to make a claim, yet many do not take out
insurance – consumers may not be aware about the numbers that need
to claim
• £5 620 average medical bill claim-consumers unlikely to be aware of
these costs when travelling abroad
• The lack of information could lead to underconsumption compared to
social optimum quantity of output
• Without insurance if someone had a plane cancelled they would have to
pay for replacement travel/if injured they would have to pay for their
own medical treatments
• Consumers may lack funds/ face high opportunity costs- have to give up
consumption of other goods
• Rational consumers maximise utility
• The decision not to insure may be based on the assessment of risks,
benefits and costs of insurance - may be rational behaviour
• It may be rational decision given high costs associated with taking out
travel insurance
• Irrational consumers do not maximise utility
• Decision not to insure may be due to computational issues/ inertia/
herding/ habitual behaviour in not purchasing
• Lack of perfect information means consumers unable to assess decision
Level Mark Descriptor
0 No rewardable material.
Level 1 1–3 Displays isolated, superficial or imprecise knowledge and
understanding of economic terms, principles, concepts, theories and
models.
Use of generic material or irrelevant information or inappropriate
examples.
Descriptive approach, which has no chains of reasoning.
Level 2 4–6 Displays elements of knowledge and understanding of economic
terms, principles, concepts, theories and models.
Limited application of knowledge and understanding to economic
problems in context.
A narrow response or superficial, only two-stage chains of reasoning in
terms of cause and/or consequence.
Level 3 7–9 Demonstrates accurate knowledge and understanding of economic
terms, principles, concepts, theories and models.
Ability to apply knowledge and understanding to some elements of the
question. Some evidence and contextual references are evident in the
answer.
Analysis is clear and coherent. Chains of reasoning in terms of cause
and/or consequence are evident but they may not be developed fully
or some stages are omitted.
Level 4 10– Demonstrates accurate and precise knowledge and understanding of
12 economic terms, principles, concepts, theories and models.
Ability to link knowledge and understanding in context using
appropriate examples which are fully integrated to address the broad
elements of the question.
Analysis is clear, coherent, relevant and focused. The answer
demonstrates logical and multi-stage chains of reasoning in terms of
cause and/or consequence.
Evaluation (8 marks) – indicative content
• Information gaps may be filled by insurance companies and
governments sharing information on costs
• Internet helps provide better information on likely costs if a consumer
has an accident on holiday
• Some of the 10 million not taking insurance may be on low risk/ short
holidays and be less likely to insure
• May be rational as some may perceive the likelihood of successfully
making a claim to be low
• Magnitude- 10 million is a large number of consumers not taking out
insurance/ may be a smaller numbers compared to the number of
travellers in a given year
Level Mark Descriptor
0 No rewardable material.
Level 1 1–3 Identification of generic evaluative comments.
No supporting evidence/reference to context.
No evidence of a logical chain of reasoning.
Level 2 4–6 Evidence of evaluation of alternative approaches.
Some supporting evidence/reference to context.
Evaluation is supported by a partially-developed chain of reasoning.
Level 3 7–8 Evaluation recognises different viewpoints and/or is critical of the
evidence, leading to an informed judgement.
Appropriate reference to evidence/context.
Evaluation is supported by a logical chain of reasoning.
Pearson Education Limited. Registered company number 872828
with its registered office at 80 Strand, London, WC2R 0RL, United Kingdom

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