Answering 2-Mark Questions (Cambridge (CIE) IGCSE Economics): Revision Note

Define opportunity cost

Model Answer

Opportunity cost is the next best alternative foregone (1) when a choice is made between different options (1).

Mark Scheme Guidance

• Definitions must contain two clear sub-parts

• Avoid circular definitions

Identify two causes of inflation

Model Answer

• Higher consumer demand (1)

• Rising production costs (1)

State two functions of money

Model Answer

• Medium of exchange (1)

• Store of value (1)

Mark Scheme Guidance

• Provide two separate, clear functions

• No explanation required

• Answers must be distinct (e.g. “medium of exchange” and “means of payment” are not distinct)

Calculate the unemployment rate

Population = 50 million
Labour force = 30 million
Unemployed = 3 million

Model Answer

Unemployment rate = (Unemployed ÷ Labour force) × 100

= (3 ÷ 30) × 100 = 10% (2)

Examiner Tip
Always include units: %, $, index number, etc

Explain one reason why productivity increased in Algeria’s tertiary sector.

Model Answer

Productivity may have increased because firms invested in new technology (1).
which allowed workers to produce more output in the same amount of time (1)

Mark Scheme Guidance

• 1 mark for the reason

• 1 mark for the development

• Only one reason needed

• No chains or evaluation required

Examiner Tip
Use the pattern reason → effect