EcoHL P2 N05 TZ0

EcoHL P2 N05 TZ0 - 2. Explain the multiplier effect of an...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 BO IB DIPLOMA PROGRAMME PROGRAMME DU DIPLOME DU BI - - PROGRAMA DEL DIPLOMA DEL BI ECONOMICS HIGHER LEVEL PAPER 2 Monday 14 November 2005 (afternoon) 1 hour INSTRUCTIONS TO CANDIDATES Do not turn over this examination paper until instructed to do so. Answer three questions. Use fully labelled diagrams and real-world examples where appropriate.
Background image of page 1

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

View Full DocumentRight Arrow Icon
N05/3/ECONO/HP2/ENG/TZ0/XX 8805-5102 – 2 – Answer three questions. Each question is worth [10 marks]. 1. Using appropriate diagrams, explain the difference between the law of diminishing returns and economies of scale.
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2. Explain the multiplier effect of an increase in government spending. 3. Using an example, explain how the concept of opportunity cost is a key element in the theory of comparative advantage. 4. With reference to the Marshall-Lerner condition, explain how the depreciation of a countrys exchange rate might affect its current account balance. 5. Explain why economic growth is likely to generate external costs, which are a threat to sustainable development. 6. Explain the difference between outward-oriented and inward-oriented growth strategies....
View Full Document

This note was uploaded on 02/12/2010 for the course ECON 201 taught by Professor Smith during the Spring '10 term at Whittier.

Page1 / 2

EcoHL P2 N05 TZ0 - 2. Explain the multiplier effect of an...

This preview shows document pages 1 - 2. Sign up to view the full document.

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