The shape of Colombia's population pyramid is changing. The income distribution of this South American country, however, is not changing significantly. The country has one of the most unequal income distributions in the world. Some Colombians work in its footwear industry which produces shoes, sandals and boots. Although footwear is produced in the private sector, Colombia has a mixed economic system.

Mark scheme

Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.

1. [1] age
2. [1] gender
3. [1] Unemployment
4. [1] those who lose their jobs are likely to experience a fall in their income
5. [1] Illness
6. [1] the sick may not be able to earn an income
7. [1] Profits
8. [1] benefitting entrepreneurs
9. [1] Interest rates
10. [1] benefitting those with a high value of savings
11. [1] Wealth
12. [1] with rich people gaining more interest/profit
13. [1] Regressive taxation
14. [1] reducing the income of the poor/placing greater burden on poor
15. [1] Discrimination of workers
16. [1] example e.g. reducing income of women
17. [1] Education provision / attainment
18. [1] but only for some
19. [1] National minimum wage
20. [1] the low-paid experience a fall in income
21. [1] Progressive taxation
22. [1] increases the income of the rich
23. [1] Welfare / state benefits
24. [1] reduce the income of the poor
25. [1] Economic growth
26. [1] benefits go more to skilled than to unskilled workers
27. [1] Changes in growth rate of different industries
28. [1] workers in expanding industries may earn more in wages than workers in declining industries
29. [1] Changes in growth rate of different regions
30. [1] workers in high growth areas may earn higher wages than in low growth / declining regions
31. [1] Changes in growth rate of private and public sector
32. [1] private sector earn higher increase in wages
33. [1] Shoes have substitutes in the form of sandals and boots
34. [1] may make demand (price) elastic
35. [1] as a change in price will cause consumers to switch between different forms of footwear
36. [1] especially if the types are close substitutes / close in price
37. [1] PED of particular brands of shoes will be more elastic than demand for shoes as a whole
38. [1] Proportion of income spent on the shoes
39. [1] the lower the proportion, the more inelastic the demand
40. [1] as a change in price will not have such a significant impact on demand
41. [1] Whether shoes are considered to be a necessity or a luxury
42. [1] shoes are likely to be considered a necessity
43. [1] and therefore inelastic
44. [1] It may not be possible to delay the purchase of shoes
45. [1] making demand inelastic
46. [1] Durability of shoes
47. [1] the more durable the more inelastic
48. [1] Demand for some shoe may be addictive
49. [1] making demand inelastic
50. [L3] A reasoned discussion which accurately examines both sides of the economic argument, making use of economic information and clear and logical analysis to evaluate economic issues and situations. One side of the argument may have more depth than the other, but overall both sides of the argument are considered and developed. There is thoughtful evaluation of economic concepts, terminology, information and/or data appropriate to the question. The discussion may also point out the possible uncertainties of alternative decisions and outcomes.
51. [L2] A reasoned discussion which makes use of economic information and clear analysis to evaluate economic issues and situations. The answer may lack some depth and development may be one-sided. There is relevant use of economic concepts, terminology, information and data appropriate to the question.
52. [L1] There is a simple attempt at using economic definitions and terminology. Some reference may be made to economic theory, with occasional understanding.
53. [0] A mark of zero should be awarded for no creditable content.
54. [1] public goods may be provided
55. [1] production of demerit goods may be discouraged
56. [1] production of merit goods may be encouraged
57. [1] state benefits may be provided
58. [1] income may be redistributed to help the poor
59. [1] unemployment may be kept low by government policies
60. [1] private sector benefits e.g. generate high incomes / lower prices
61. [1] may be market failure in the private sector
62. [1] rich may lose if there is high progressive taxation
63. [1] high taxation may discourage enterprise
64. [1] state-owned enterprises may be inefficient
65. [1] may be less choice in the public sector