Economics Ib Paper





November 06\


Common Level

Daily news 1

7 pages



This kind of markscheme is usually confidential and for the unique use of examiners in this assessment session. It is the property with the International Baccalaureate and must not be reproduced or perhaps distributed to any other person without the authorization of IBCA.



In addition to the evaluation criteria utilize paper-specific markscheme below. Merit up to the maximum marks as indicated. 1 . (a) Describe why underprovision of advantage goods in an economy is regarded as a market failure. Candidates might include any of the pursuing: • meaning of market failing • meaning of merit great • reason of confident externalities • how the underprovision of merit goods brings about market failing • plan of underprovision of advantage goods • example of merit goods • social benefits and limited social benefits Examiners must be aware that applicants may take a different approach, which usually if appropriate should be compensated. (b) Evaluate the possible measures that a federal government might use for correct this kind of a market failure. Candidates can include any of the next: • government financing the production of the great • immediate provision of merit goods • financial aid • guidelines to make ingestion of the good or service mandatory • advertising to encourage consumption Candidates might illustrate federal government measures with examples. Examiners should be aware that candidates may take a different strategy, which in the event that appropriate needs to be rewarded. Successful evaluation may be to: • consider growing process versus long haul consequences • examine the impact on distinct stakeholders • discuss pros and cons • prioritize the arguments

[10 marks]

[15 marks]

–4– 2 . (a)

N06/3/ECONO/SP1/ENG/TZ0/XX/M+ [10 marks]

Explain the following different types of lack of employment: • • • •

frictional lack of employment: search time workers encounter between careers structural joblessness: mismatch of skills among unemployed and available function cyclical/demand-deficient unemployment: in a recession or due to falling ADVERTISING real wage/classical unemployment: once real wages are pushed above the marketplace clearing level by minimal wages


Evaluate the success of the different measures open to governments to cope with the types of lack of employment in (a).

[15 marks]

Candidates may include any of the next: • explanation of how require management can be used to reduce cyclical/demand-deficient unemployment • discussion of the problems associated with expansionary fiscal and monetary policy: e. g. inflation, time lags, export competitiveness • explanation of how supply-side policies can be used to decrease the other 3 types of unemployment • discussion of the difficulties associated with supply-side policies: at the. g. much less protection for workers, period lags, expense and performance of procedures Examiners must be aware that prospects may take a different approach, which in turn if ideal should be rewarded. Effective analysis may be to: • consider short run versus long run consequences • take a look at the impact about different stakeholders • go over advantages and disadvantages • prioritize the arguments

–5– 3. (a)

N06/3/ECONO/SP1/ENG/TZ0/XX/M+ [10 marks]

Explain the reasons why countries trade with one another. Candidates may include any of the next: • variations in factor endowments • variety and quality of goods • gains by specialization • political concerns • researching new production techniques and technology You should not mention " comparative advantage” for complete marks.

Examiners should be aware that candidates will take a different strategy, which if appropriate should be rewarded. (b) Given some great benefits of trade, assess the economic quarrels in favour of...



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