Cambridge AS & A Level Economics 9708/22 is the May/June 2026 Paper 2 (AS Level Data Response and Essays), variant 2. It is an AS component worth 60 marks, and it lasts 2 hours. You answer three questions: the compulsory 20-mark data response on whether Australia should support nickel production, then one essay from Section B and one from Section C, each worth 20. The biggest single parts are the 12-mark part (b)s of the essays, marked with two level grids. This guide goes through every question and shows what the official mark scheme gave marks for. The paper and its mark scheme are free on the Tutopiya Learning Portal.

For an overview of all four 9708 papers from this series, see A Level Economics 9708 May/June 2026 past papers: what came up and how it was marked.

9708/22 at a glance

The rubric is: answer all parts of Question 1 in Section A, one question from Section B and one question from Section C.

Question	Section	Topic	Marks
1	A (compulsory)	Australian nickel: PED, a production subsidy, government spending, comparative advantage	20
2	B (choose 2 or 3)	Public goods and merit goods; whether public goods need a mixed economy	20
3	B (choose 2 or 3)	Market equilibrium and income; price controls and quantities	20
4	C (choose 4 or 5)	Real GDP and the sources of growth; costs and benefits of growth	20
5	C (choose 4 or 5)	The circular flow, open and closed; fiscal policy, leakages and injections	20
		Total answered (Question 1 + one from B + one from C)	60

Every essay has the same shape: an 8-mark part (a) and a 12-mark part (b).

Question-by-question walkthrough

Question 1: should Australia support the production of nickel? (20 marks)

The source described nickel as a very important raw material, gave price and demand data for 2022 and a forecast for 2024 in Table 1.1, and discussed a planned large increase in Australian government spending. It ended by asking whether the support was affordable, and whether Australia should spend elsewhere and leave Indonesia to use its comparative advantage.

• 1(a) Calculate PED between 2022 and the 2024 forecast (2 marks): the percentage change in demand is 17.2% and the percentage change in price 8.2%, so PED = 17.2 ÷ 8.2 ≈ 2.1. Any answer from 1.9 to 2.3 earned both marks, and the minus sign was not needed. Without the right answer, 1 mark was available for the correct formula (% change in quantity demanded ÷ % change in price) or the correct percentage changes.
• 1(b) What the estimate suggests and why it is “highly unusual” (2 marks): 1 for saying demand is elastic (or that the change in demand is proportionally bigger than the change in price), and 1 for explaining that nickel is essential, so its demand would be expected to be inelastic. Calling the value “high”, or repeating the numbers, earned nothing.
• 1(c) Subsidy diagram and whether the effect is always as expected (4 marks): 1 for an accurate, labelled diagram with supply shifting right, a lower price and a higher quantity traded; 1 for explaining that the subsidy lowers production costs; 1 for the result (more output, a lower price or more nickel exports); and 1 for evaluation. Credited evaluation: producers may keep the subsidy as profit, inelastic supply limits the rise in output, Australian nickel may still cost more than other countries’ so exports may not rise, and other costs may rise and cancel out the subsidy.
• 1(d) Effects of a large rise in government spending (6 marks): up to 4 for analysis, with no more than 3 on either side, and up to 2 for evaluation. Positive effects: higher AD raising real output and cutting unemployment, a move to a higher national income, firms expanding and supporting growth, and spending on education, training or subsidies raising productivity, competitiveness and exports. Negative effects: inflation, a bigger budget deficit, higher taxes that weaken incentives to work or invest, and more imports worsening the current account. Opportunity cost was not accepted as a counterpoint, because the question is about the size of the spending, not what it is spent on, and interest-free loans did not count as government spending. One evaluation mark was reserved for a justified conclusion about Australia.
• 1(e) Should comparative advantage be the only factor? (6 marks): the same 4 + 2 structure. For using comparative advantage: it shows whether Australia produces nickel at a lower opportunity cost, which signals efficiency and supports growth; specialisation raises world output; and a comparative advantage could lift exports and the current account. Against relying on it alone: strategic or protectionist reasons such as protecting jobs; the risk of overspecialisation and reliance on imports; changes in world prices, exchange rates and the terms of trade; imported inputs worsening the current account; and the opportunity cost of subsidies and depletion of resources. Evaluation had to weigh the benefits and drawbacks of using the principle, with 1 mark reserved for a justified conclusion about Australia.

Each analysis point is worth 1 mark, or up to 2 when it is developed through a chain of reasoning, so two developed points on one side can take you to the cap of 3 for that side.

Question 2: public goods and merit goods (Section B, 20 marks)

• 2(a) The difference between public and merit goods, and whether more information is the best way to raise merit good consumption (8 marks: 3 AO1, 3 AO2, 2 AO3): AO1 needed non-rivalry and non-excludability for public goods (or the free-rider problem stopping the market charging a price), rivalry and excludability for merit goods (so the market can supply them), and an accurate example of each, such as street lights and healthcare. Roads and other quasi-public goods were not accepted as public goods, and saying merit goods are under-provided because of missing information did not explain the difference. AO2: merit goods are under-consumed because of information failure, so more information can raise demand, but at least one alternative such as a subsidy, direct provision or a maximum price had to be explained. AO3: a judgement on whether information is the best method, with the second mark reserved for a justified conclusion.
• 2(b) Can public goods only ever be provided in a mixed economy? (12 marks): for: a market economy has no government role, and the free-rider problem means private firms cannot charge or cover costs, so a mixed economy using taxation is needed. Against: governments in lower-income economies may lack revenue and rely on international aid; voluntary or socially motivated organisations can supply some public-good-type services; and a command economy could provide all public goods with no private sector at all.

Question 3: market equilibrium and price controls (Section B, 20 marks)

• 3(a) Market equilibrium, and how far income changes alter the price (8 marks: 3 AO1, 3 AO2, 2 AO3): AO1 was 1 for an accurate, labelled diagram showing the equilibrium price and quantity, 1 for explaining that quantity demanded equals quantity supplied, and 1 for adding that there is no tendency to change. AO2: the effect depends on YED; for a normal good, higher (lower) income raises (lowers) demand and price; for an inferior good, it works the other way. AO3: the outcome depends on the type of good and the direction of the income change, with the second mark reserved for a justified conclusion.
• 3(b) How far price controls change both quantity demanded and quantity supplied (12 marks): answers could use maximum and minimum prices, indirect taxes and subsidies, or buffer stocks. A maximum price below equilibrium raises quantity demanded and cuts quantity supplied; a minimum price above equilibrium does the reverse. Against: a controlled price at or near equilibrium changes little; subsidies or buffer stocks can offset the effects; and very inelastic demand or supply limits the change. Answers that covered only demand or only supply, or only why changes do or do not happen, could not go above mid Level 2.

Question 4: economic growth (Section C, 20 marks)

• 4(a) Why growth is measured with real GDP, and whether growth needs more resources (8 marks: 3 AO1, 3 AO2, 2 AO3): AO1: real GDP allows valid comparisons between years; nominal GDP is measured at the prices of the year the output was produced; real GDP is adjusted for inflation using the GDP deflator. AO2: more resources, such as extra labour from immigration, can raise output; better quality resources, such as improved technology, raise productivity; and because resources are finite, quality may matter more than quantity. AO3: how far growth can rely on the quantity of resources, with the second mark for a justified conclusion.
• 4(b) Do the benefits of growth always outweigh the costs for all economies? (12 marks): benefits included more goods and services and higher living standards, more employment and less cyclical unemployment, more tax revenue for transfer payments and for merit and public goods, and greater national prestige. Costs included giving up consumption for capital spending in the short run, technological unemployment, inflation if AD outruns AS, a current account deficit from more imports, and pollution and depletion of resources. Evaluation could judge that growth benefits developing economies more, for example because it lifts more people out of poverty.

Question 5: the circular flow and fiscal policy (Section C, 20 marks)

• 5(a) The circular flow in an open economy with government, and the effect of becoming a closed economy (8 marks: 3 AO1, 3 AO2, 2 AO3): AO1: a diagram showing household spending going to firms and income (wages, interest, profit and rent) going back; leakages of saving, taxes and imports; and injections of investment, government spending and exports. At minimum, the diagram had to show income flowing from firms to households and spending from households to firms. AO2: closing the economy removes imports as a leakage and exports as an injection; national income rises when injections exceed leakages and falls when they are smaller; so if exports had been bigger than imports, income may fall, and the reverse. AO3: the change depends on how injections and leakages shift when trade stops, with the second mark for a justified conclusion.
• 5(b) Fiscal policy, leakages and injections and two macroeconomic objectives (12 marks): knowledge of the objectives (price stability, low unemployment and growth), leakages, injections and fiscal policy. Analysis of leakages: import tariffs can cut the import leakage and raise growth through higher net exports but may raise prices through dearer raw materials; tax cuts reduce the tax leakage but extra income may be saved. Analysis of injections: more government spending can raise employment but risks demand-pull inflation and a budget deficit that limits future policy. Analysis of supply-side or monetary policy was not required, and answers that did not cover at least two objectives, with strengths and weaknesses of fiscal policy for each, were unlikely to go above Level 2.

How the essays are marked

• The 8-mark part (a)s are point-marked: up to 3 for AO1 (knowledge and understanding), 3 for AO2 (analysis) and 2 for AO3 (evaluation). In every part (a), the second AO3 mark was reserved for a justified conclusion.
• The 12-mark part (b)s use two grids. Table A awards up to 8 marks for AO1 and AO2: Level 1 (1–2) is mostly descriptive with significant errors; Level 2 (3–5) is generally accurate but has little detail, may be one-sided, and uses diagrams only partly accurately; Level 3 (6–8) is detailed, balanced and fully developed, with accurate, fully explained diagrams where needed. Table B awards up to 4 for AO3: Level 1 (1–2) for simple comments and a vague conclusion, Level 2 (3–4) for developed evaluation and a justified conclusion that addresses the question.
• A one-sided response cannot gain any evaluation marks in any part (b).

Where the marks are on 9708/22

Split by type of task, for a candidate answering Question 1 and two essays:

Task	Marks
Calculate and state (1(a), 1(b))	4
Explain with a diagram and comment (1(c))	4
Assess in the data response (1(d), 1(e))	12
Point-marked essay parts (two part (a)s)	16
Level-marked essay parts (two part (b)s)	24
Total	60

• The essays are two thirds of the paper, and the 12-mark part (b)s alone are 40%.
• Evaluation is worth up to 17 marks: 1 in Question 1(c), up to 2 each in 1(d) and 1(e), 2 in each part (a) and 4 in each part (b).
• Only 4 marks are short recall or a calculation, so a strong 9708/22 answer depends on chains of analysis and two-sided judgements.

How to self-mark 9708/22 with the mark scheme

1. Learn the layout. A slash or “or” separates alternative ways of making the same point; semicolons, bullets or a (1) separate different points. Content in brackets is context for the examiner and is not needed for the mark.
2. Mark Question 1 point by point. Check the 1(a) answer falls within 1.9 to 2.3, and that 1(b) uses the words elastic and inelastic, not “high”.
3. For 1(d) and 1(e), give 1 mark per explained point or 2 for a developed chain, cap each side at 3 and analysis at 4, then add up to 2 for evaluation only if you reached a conclusion about Australia.
4. Mark each part (a) by AO. Tick off the three AO1 points, the three AO2 points and the two AO3 marks separately, and check you gave a justified conclusion for the second AO3 mark.
5. Level each part (b) twice. Place the answer in Table A first (is it balanced and fully developed?), then in Table B. If the answer is one-sided, the Table B mark is zero.
6. Check the question-specific caps: mid Level 2 for one-sided treatment of quantity demanded and supplied in 3(b), and Level 2 for fewer than two objectives in 5(b).
7. Log each lost mark as missing knowledge, an undeveloped chain or missing evaluation, and practise that skill next.

Sit 9708/22 as a timed mock

The paper allows 120 minutes for 60 marks, two minutes per mark. A workable plan:

Block	Marks	Time
Read the source and Question 1	–	5 minutes
Answer Question 1	20	33 minutes
Choose and plan your Section B essay	–	4 minutes
Write the Section B essay	20	36 minutes
Choose and plan your Section C essay	–	4 minutes
Write the Section C essay	20	36 minutes
Check diagrams and conclusions	–	2 minutes

Choose each essay by its part (b): it carries 12 of the 20 marks, so pick the debate you can argue on both sides and conclude. Within each essay, spend about 14 minutes on part (a) and 22 minutes on part (b).

Other May/June 2026 9708 papers

• 9708 Paper 12 (AS Level Multiple Choice)
• 9708 Paper 32 (A Level Multiple Choice)
• 9708 Paper 42 (A Level Data Response and Essays)

Practise and download

• Download 9708/22 and its mark scheme on the Learning Portal →
• All 9708 May/June 2026 papers: overview and marking patterns
• Try a free A Level Economics quiz

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Frequently asked questions

What topics were on 9708 Paper 22 May/June 2026? +

Question 1 was a data response on whether Australia should support nickel production, covering PED, a production subsidy, government spending and comparative advantage. The essays were on public and merit goods, market equilibrium and price controls, economic growth, and the circular flow with fiscal policy.

How many marks is 9708/22 and how long is it? +

It is out of 60 marks and lasts 2 hours. Question 1 is worth 20 marks, and you answer one 20-mark essay from Section B and one from Section C, each split into an 8-mark part (a) and a 12-mark part (b).

What was the answer to 9708/22 Question 1(a)? +

About 2.1. The percentage change in demand was 17.2% and the percentage change in price 8.2%, and 17.2 ÷ 8.2 ≈ 2.1. Any answer from 1.9 to 2.3 scored both marks, and the minus sign was not needed.

How are the 12-mark essay parts on 9708/22 marked? +

With two grids. Table A gives up to 8 marks for knowledge, understanding and analysis in three levels (1–2, 3–5 and 6–8). Table B gives up to 4 for evaluation in two levels (1–2 and 3–4). The mark scheme states that a one-sided response cannot gain any evaluation marks.

Is 9708/22 an AS or A Level paper? +

It is Paper 2, the AS Level data response and essays paper. AS candidates sit it with Paper 1, and full A Level candidates sit it as well as Papers 3 and 4.

Where can I download 9708/22 May/June 2026 and its mark scheme? +

Both are free to download and print on the Tutopiya Learning Portal, on the Cambridge AS & A Level Economics 9708 past papers page.

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