EcoHL P3 M04 M

EcoHL P3 M04 M - INTERNATIONAL BACCALAURAT BACHILLERATO c...

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MARKSCHEME May 2004 ECONOMICS Higher Level Paper 3 12 pages M04/330/H(3)M+ INTERNATIONAL BACCALAUREATE BACCALAURÉAT INTERNATIONAL BACHILLERATO INTERNACIONAL c
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– 2 – M04/330/H(3)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.
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SECTION A Data Response: Paper-Specific Markscheme Award up to the maximum marks available. Question 1 Passion, Pride and Profit Maximum Mark Partial Mark (a) Explain what is meant by the following terms used in the passage: 2 2 1 2 (i) profit * use of the passage without precise definition e.g. soaring revenues * accurate definition referring to TR and TC 2 2 1 1 2 (ii) globalization. * vague explanation * any relevant example * more precise definition along the lines of the integration of the world’s economies through trade and/or capital market liberalization. 3 3 1 1 2 (b) Using the passage and your understanding of market structures, describe the type of market that best represents the future shape of world football described in paragraph s . Give reasons for your answer. * for identifying the market structure as oligopolistic * for referring appropriately to the passage e.g. “six global brand leaders” * for linking the passage to any of the other characteristics of oligopoly 5 5 2 2 2 2 (c) Explain the likely consequences of the imposition of a salary cap (price ceiling) on the market for football players. Use a diagram in your answer. A salary cap is not mentioned in the passage. The answer is likely to refer to the traditional theory associated with maximum prices. * for drawing a supply and demand diagram * showing excess demand at maximum price * for providing a sensible explanation * for providing a link to the passage – 3 – M04/330/H(3)M+
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6 6 1 2 2 2 2 2 (d) Discuss, with reference to the text and your knowledge of markets, the reasons why clubs are prepared to pay high prices for star football players? Answers are likely to focus on the “demand side” of the issue. Football clubs have increased their demand for “star players” due to a variety of factors. These could include: y star players allow clubs to differentiate their teams y players represent investment in human capital y having a star player increases the demand for the teams games to increase revenue y teams earn greater revenues from sponsorship arrangements y star players may allow a team to experience greater success which may lead to increased revenues y star players act as a type of non-price competition. Candidates may earn full marks for arguing three of these points well. Be more generous for use of appropriate economic terminology.
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This note was uploaded on 02/12/2010 for the course ECON 201 taught by Professor Smith during the Spring '10 term at Whittier.

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EcoHL P3 M04 M - INTERNATIONAL BACCALAURAT BACHILLERATO c...

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