Nearly one million people in Cairo, the capital city of Egypt, live in crowded, unhealthy housing. One reason why people lack basic necessities, including adequate housing, is unemployment. In 2019, nearly 10% of Cairo's workers did not have a job. Other citizens of Cairo live in luxury, in houses costing more than $1 million. Many of Cairo's rich adults grew up in rich families. Each question is introduced by stimulus material. In your answers you may refer to the material and/or to other examples you have studied.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1. [2] (a) Two from e.g.: Food, water, clothing, healthcare and education.
2. [4] (b) Logical explanation which might include: Frictional unemployment arises from people being in between jobs (1) may be waiting for a better paid job / may be seasonally unemployed / may have worked on a short-term contract / may lack information about vacancies (1) may exist even when there is full employment / may be self-correcting (1).
3. [4] (b) Cyclical unemployment is caused by a lack of total (aggregate) demand (1) more people unemployed than there are job vacancies (1) may arise from a recession / economic downturn (1) may need government action to reduce it (1).
4. [4] (b) Frictional unemployment would be reduced by a rise in labour mobility (1) cyclical unemployment would not be (1).
5. [4] (b) Frictional unemployment may be short term (1) cyclical unemployment may be long term (1).
6. [6] (c) Coherent analysis which might include: The children of the rich tend to receive a good education (1) may not have to take part-time jobs / not have to help in family business when studying / not have to leave school early (1) become well qualified / well educated / gain high level of knowledge (1) become highly skilled / productive / efficient (1) find it is relatively easy to find employment / get a good job (1) well-paid (1).
7. [6] (c) The children of the rich tend to receive good health care (1) good nutrition (1) have good housing (1) unlikely to miss time at school (1) unlikely to miss time at work (1) income will be high (1).
8. [6] (c) The children of the rich tend to have high expectations (1) apply for better jobs (1).
9. [6] (c) The children of the rich may inherit e.g. property (1) may gain income from e.g. inherited property / business / savings (1).
10. [6] (c) Rich parents may have connections with e.g. bosses of major employers (1) more likely to gain high paid work (1).
11. [8] (d) Why it might: will increase the spending power of families who receive it; may increase quantity supplied; may give low-income families access to a basic necessity, reducing poverty; may enable families to spend more on e.g. education; may increase employment / reduce unemployment, creating jobs building housing / increase labour mobility; may increase quality of housing and so improve health.
12. [8] (d) Why it might not: rich can already afford housing; some families may not spend it on housing; may be inflationary, demand increasing for housing and e.g. furniture, carpets; opportunity cost; taxes may be raised to finance subsidy; building more houses may result in environmental damage.