Free goods and economic goods are consumed in Poland. In 2020, demand for both economic goods and factors of production increased in Poland. For example, Polish consumers demanded more football shirts and the Polish government increased its spending on housing for the country's population.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. [1] Air / oxygen.
2. [1] Sunlight.
3. [1] Water.
4. [1] Wind.
5. [2] Demand for the product produced / total demand / economic activity: a rise in demand for the product/products will be likely to increase demand for the factor/factors of production / derived demand.
6. [2] Price of the factor itself: a lower price will be likely to result in higher demand.
7. [2] Price of substitute factors of production: e.g. may demand more labour if price of capital rises.
8. [2] Price of complementary factors of production: e.g. if labour is used with capital, a fall in the price of capital may increase demand for labour.
9. [2] Productivity: higher productivity will be likely to increase demand.
10. [2] Quality / advances in technology / changes in standards of education and training: higher quality will increase demand.
11. [2] Occupational mobility: the more occupationally mobile, the higher demand will tend to be.
12. [2] Method of production: a switch from labour-intensive production will increase demand for capital goods.
13. [1] Demand for football shorts is likely to increase.
14. [1] football shirts and shorts are complements.
15. [1] bought to be used together / bought to complete the set.
16. [1] Demand for basketball shirts is likely to fall.
17. [1] basketball shirts and football shirts may be substitutes.
18. [1] consumers may switch between them.
19. [1] Why it might: may increase total demand.
20. [1] Why it might: may increase output / GDP.
21. [1] Why it might: may increase employment / reduce unemployment.
22. [1] Why it might: may lower the price of housing.
23. [1] Why it might: may increase living standards.
24. [1] Why it might: may reduce homelessness.
25. [1] Why it might: may reduce poverty.
26. [1] Why it might not: will have an opportunity cost.
27. [1] Why it might not: may increase taxes.
28. [1] Why it might not: quality of housing may be low.
29. [1] Why it might not: private sector may provide better housing.
30. [1] Why it might not: may be external costs during the construction.