Examiners’ Report

Principal Examiner Feedback

November 2020

Pearson Edexcel International GCSE Economics

4EC1 02
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November 2020
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Introduction

This was the third opportunity to sit the paper and overall, candidates’
performance showed a sound grasp of economic concepts. Answers suggested
that candidates, overall, had been prepared for this paper. There appeared to be
use of economic terminology throughout all sections of the paper.

Better candidates demonstrated excellent application of their knowledge to the

precise question set, whilst some candidates attempted questions from a ‘common
sense’ approach rather than demonstrating any economic concepts.

The examination paper required candidates to apply their understanding; some

candidates performed strongly, with clear development of points. Examination
timing skills appeared to be very good.

Question 1c:

There were two parts to the explanation of GDP and candidates should have
referenced that it is the market value of all goods and services, and this was
produced in a year. Candidates had to provide both parts to gain 2 marks. Many
candidates were able to gain both marks for this question.

Question 1d:

Again, this question required candidates to give two parts to their explanation of a
positive impact of economic growth. This question was well answered with many
candidates being able to give a positive impact and then explain why this positive
impact might occur.

Question 1e:

Some candidates were able to calculate the correct answer so achieved 2 marks.
Marks were not awarded if the percentage sign was missing. This was not very well
answered with many candidates unable to score any marks on this question. It is
essential that candidates show their workings to gain 1 mark if an incorrect answer
is given or if units are missing otherwise marks cannot be awarded.

Question 1f:

Marks were awarded for the labelling of the economic cycle. Overall, this question
was well answered by candidates with many being able to correctly identify all
three stages.

Question 1g:

A mark was available for any suitable reason and many candidates referred to
poor pay or to generous welfare benefits. An additional mark was available for
developing the stated reason in terms of how generous welfare benefits might
result in voluntary unemployment. The third mark was available for either applying
this to education or for the application of economic concepts.

Question 1h:

This was question was marked using a levels-based mark scheme. The question
focused on how the reduced cost of transport has contributed to the increase in
globalisation. Application could have been references to the information in the
stem of the question or candidates’ own knowledge of the use of transport. Some
candidates gave a list rather than developing or analysing how a reduced cost of
transport might have helped contribute to an increase. Again, some candidates
evaluated, and marks cannot be awarded for evaluation on a 6 mark question.

Question 2c:

This is the only ‘State’ question on the examination paper. Candidates were asked
to state a disadvantage of free trade. The most popular response was an increase
in unemployment caused by more imports. Candidates did not have to explain
their chosen disadvantage. Overall, this question was answered well by all
candidates.

Question 2d:

Marks were awarded for a reference to the price of one currency in terms of
another currency. Many stated value rather than price of the currency so were only
awarded 1 mark for this.

Question 2e:

This question looked at why a fall in the value of the euro may have resulted in a
positive impact on Germany’s current account. Many candidates were able to show
this and there has been an improvement on the quality of responses for this area
of the specification. Marks were awarded for the development of the reason and
either application of the economic concept or application to the context.

Question 2f:

This question asked for one way privatisation could improve productivity in Indian
airports. Many candidates gave a definition of privatisation which cannot be
rewarded. Marks were awarded for the way rather than a definition of
privatisation. Some candidates were able to develop their way and apply this to the
context. Overall, this question did not score as highly as the previous 3-mark
question.

Question 2g:

This was the first 9-mark levels-based question on the examination paper. Many
candidates were able to assess the advantages of using benefit payments to
redistribute income in Canada. The counter argument mainly focused on the
opportunity cost of using benefit payments in the long term. A conclusion was not
required for the 9 mark Assess questions.

Question 3c:

This question required candidates to explain one advantage for Indonesia of the
palm oil plantations being owned by foreign MNCs. Many reasons were accepted
such as reducing unemployment, increased revenue for the Indonesian
Government and skills/technology transfer for Indonesian workers. Further marks
were awarded for developing this advantage and contextualising by the either the
use of the data in the question or the application of economic concepts. Overall,
this question was well answered.

Question 3d:

This 6-mark question concerned the impact on unemployment of a recession in a

country such as Italy. This was very poorly done by the vast majority of candidates.
Many candidates did not understand the link between unemployment and a
recession and instead described how unemployment could be reduced.

Question 3e:

This question was answered slightly better compared to the previous 9-mark
question on the examination paper. Some candidates were able to give the
benefits of lowering interest rates in China to stimulate economic growth.
Unfortunately, many candidates just copied out the extract without evaluating the
likely effectiveness of monetary policy to increase economic growth. The counter
argument was often not as detailed and mainly focused on inflation. Again, a
conclusion was not required but many candidates did provide a conclusion which
is unnecessary.

Question 4a:

Many candidates correctly calculated the fiscal deficit so gained 2 marks. Again,
many candidates did not include the correct units of €m despite this being in the
question and therefore only received 1 mark. It is essential that workings are
shown, and the correct unit and decimal place is used to gain 2 marks.

Question 4b:

This question required a one-sided argument regarding how the Estonian

Government might use fiscal policy to control inflation. Some candidates were able
to show how an increase in taxation helps to reduce demand in the economy and
therefore reducing inflation. Some candidates did not know what fiscal policy was
or confused this with monetary policy. Overall, candidates did not perform as well
on this question compared to other 6-mark questions on the paper.
Question 4c:

This was the highest mark question on the paper. Many candidates were able to
explain the advantages of using subsidies to protect the environment. The counter
argument mainly focused on the cost of the subsidies and how effective they
would be in tackling pollution levels. Better responses used the information in the
extract rather than just copying it. A conclusion was required for this question and
this was often lacking or was just a repeat of the points made previously.

Summary

There are several points which could raise performance in future sittings. Based on
their performance on this paper candidates are offered the following advice:

• Read the questions carefully in terms of the command words. It was clear
that some candidates were not aware of the demands of the question or
how to structure their responses.
• ‘What is meant questions’ will always require two parts to the explanation
and examples are not rewarded.
• Quantitative Skills will be tested throughout the paper and these may be in
the form of calculations, diagrams or using the data from the Extracts.
• For calculation questions, it is essential that the answer has the correct
units or is to two decimal places (if specified).
• The ‘Explain’ questions will always have one context mark and this can be
for either using (not just copying) the information from the stem or for a
detailed application of the economic concept so ensure that there is
sufficient development in the response to gain all 3 marks. Marks cannot be
awarded for definitions so do not waste time giving a definition in any of
the 3-mark questions.
• Analyse – this question only requires a one–sided argument and evaluation
is not required for a 6-mark Analyse question.
• The command words ‘Assess and ‘Evaluate’ are evaluative command words
so candidates must provide both sides of an economic argument to achieve
full marks.
• Use of relevant application is required throughout and this can be from the
Extracts provided or using examples provided by the candidate themselves.
The Extracts are there for a reason – so use them.
• Use economic concepts rather than generic ‘common sense’ answers.
• Examination timings – make sure there is enough time to answer the 12-
mark question.
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