EcoHL P1 M06 TZ0 M

EcoHL P1 M06 TZ0 M - c IB DIPLOMA PROGRAMME PROGRAMME DU...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
c IB DIPLOMA PROGRAMME PROGRAMME DU DIPLÔME DU BI PROGRAMA DEL DIPLOMA DEL BI M06/3/ECONO/HP1/ENG/TZ0/XX/M MARKSCHEME May 2006 ECONOMICS Higher Level Paper 1 6 Pages
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
- 2 - M06/3/ECONO/HP1/ENG/TZ0/XX/M This markscheme is confidential and for the exclusive use of examiners in this examination session. It is the property of the International Baccalaureate and must not be reproduced or distributed to any other person without the authorization of IBCA.
Background image of page 2
- 3 - M06/3/ECONO/HP1/ENG/TZ0/XX/M In addition to the assessment criteria, use the paper-specific markscheme below. Award up to the maximum marks indicated. Examiners should be aware that candidates may take a different approach, which if appropriate should be fully rewarded. 1. (a) Carefully distinguish between merit goods, demerit goods and public goods. [10 marks] definition and explanation of all three types of goods by referring to the following features: – merit: MSB>MPB, positive externalities, underproduction/underconsumption, example – demerit: MSC>MPC, negative externalities, overprovision/overconsumption, example public: non excludability, non rivalry, free riders, example distinguish between merit and demerit goods on the one hand and public goods, on the other indicate that all three can lead to market failure reward the drawing of a MSC/MPC diagram or any other relevant one. Good candidates will probably define externalities. (b) Evaluate the view that governments should always intervene in markets for such goods as cigarettes and alcohol. [15 marks] methods of intervention Good candidates may identify different types of intervention i.e. market based and non market based. For the view answers may include: cigarettes and alcohol as demerit goods market failure arising (overprovision) generation of negative externalities use of MSC/MSB diagrams importance of PED and tax revenue Against the view answers may include:
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

EcoHL P1 M06 TZ0 M - c IB DIPLOMA PROGRAMME PROGRAMME DU...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online