Sep 253 min read

IGCSE Economics: How to answer 4-Mark Questions

For a 4-mark "Explain" question in IGCSE Economics, definitions and conclusions are not necessary. The focus should be on providing two clear, relevant points related to the question.

Technique for 4-Mark "Explain" Questions:

Identify Two Relevant Points: The question usually asks for two points, so students should focus on identifying two relevant influences or factors.
Expand Each Point: This explanation should connect the point to the outcome or effect.
The explanation should demonstrate cause and effect or why the point matters in the context of the question.
Keep it Clear and Direct: Use simple language and avoid over-complicating the response. The explanation should be simple, direct, and easy to understand, focusing on economic logic.
Give Examples When Necessary: If it helps clarify the point, students should provide an example (though this isn’t always required). This makes the response more concrete.

Structure for a 4-Mark Answer:

First Point: Identify the first factor or influence.
- Explanation: Provide a brief explanation that clearly shows why this factor is relevant to the question.
Second Point: Identify the second factor or influence.
- Explanation: Again, provide a short explanation connecting this to the question.

Examples:

Explain two influences on demand for factors of production.

First Point: Demand for the product produced (1)
- Explanation: A rise in demand for the product will increase demand for the factors of production used to make it because of derived demand (1).
Second Point: Price of the factor itself (1)
- Explanation: If the price of the factor decreases, firms are likely to demand more of it as it becomes cheaper to employ (1).

Explain two characteristics of money.

First Point: Generally acceptable (1)
- Explanation: Money is widely accepted as a medium of exchange, meaning people are willing to accept it as payment (1).
Second Point: Portable (1)
- Explanation: Money is easy to carry, making it convenient for people to use in transactions (1).

Explain two policy measures which may reduce poverty.

First Point: Increase the minimum wage (1)
- Explanation: This helps low-paid workers by raising their income, making it easier for them to afford basic necessities (1).
Second Point: Provide education and training (1)
- Explanation: This increases people’s skills and qualifications, improving their chances of getting better-paying jobs (1).

Explain two reasons why a firm’s revenue may increase.

First Point: Higher demand (1)
- Explanation: An increase in demand can occur due to factors such as successful advertising or a rise in consumer income, leading to higher sales and, therefore, increased revenue for the firm (1).
Second Point: Change in price of the product (1)
- Explanation: If the product has inelastic demand, a rise in price will lead to an increase in revenue because consumers will continue to buy despite the higher price (1).

Explain two possible external benefits of vaccines.

First Point: Healthier overall population (1)
- Explanation: Vaccines reduce the spread of diseases, leading to fewer infections in the community and lowering the risk for unvaccinated individuals (1).
Second Point: Reduced long-term healthcare spending (1)
- Explanation: Vaccines prevent diseases, reducing the need for long-term treatment and freeing up government funds for other essential areas like education or infrastructure (1).

Explain two benefits that consumers may gain from having more commercial banks.

First Point: More convenient (1)
- Explanation: May be more convenient since closer to home / less time travelling (1)
Second Point: Lower interest rates on loans (1)
- Explanation: Increased competition among banks can lead to lower interest rates, making it more affordable for consumers to borrow money for purchases (1).

Explain two benefits a firm may gain from an increase in the size of the country’s population.

First Point: Higher demand (1)
- Explanation: A larger population increases the number of consumers, expanding the market size, which can lead to higher sales and profits for firms (1).
Second Point: Increased supply of labor (1)
- Explanation: A growing population means more workers are available, making it easier for firms to hire employees and potentially reducing wage costs, which can increase output and profitability (1).