Edexcel IGCSE Economics 2.1.1.b low and stable inflation

Indicative content

Mark

3(d)

AO2 (3 marks)/AO3 (3 marks)

- Rising inflation reduces the purchasing power of consumers

- As prices increase, consumers are likely to spend more time shopping around for better deals and discounts to stretch their budgets

- This involves visiting multiple stores or browsing various online retailers thereby increasing shoe leather costs

- With inflation rising to 4% in December 2023, consumers may find themselves making more frequent trips to banks

- The effect of rising inflation on shoe leather costs is particularly significant for low-income consumers

- These individuals may not have easy access to banking

- This makes them more vulnerable to the negative impacts of inflation and significantly increases shoe leather costs for consumers

(6)

Level

Mark

Descriptor

0

No rewardable material.

Level 1

1-2

- Demonstrates basic knowledge and understanding by developing relevant points. Limited application of economic terms, concepts, theories and calculations (AO2).

- Information presented will lack selectivity and organisation. Interpretation of economic information will be limited, with a lack of analysis of issues (AO3).

Level 2

3-4

- Demonstrates partial knowledge and understanding by developing relevant points. Partial application of economic terms, concepts, theories and calculations (AO2).

- Information presented will demonstrate some selectivity and organisation. Interpretation of economic information will be good, with some analysis of issues (AO3).

Level 3

5-6

- Demonstrates clear knowledge and understanding by developing relevant points. Appropriate application of economic terms, concepts, theories and calculations (AO2).

- Information presented will demonstrate excellent selectivity and organisation. Interpretation of economic information will be excellent, with a thorough analysis of issues (AO3).