EcoHL P3 M03 M

EcoHL P3 M03 M - INTERNATIONAL BACCALAURAT BACHILLERATO c...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
MARKSCHEME May 2003 ECONOMICS Higher Level Paper 3 12 pages M03/330/H(3)M+ INTERNATIONAL BACCALAUREATE BACCALAURÉAT INTERNATIONAL BACHILLERATO INTERNACIONAL c
Background image of page 1

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

View Full DocumentRight Arrow Icon
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. – 2 – M03/330/H(3)M+
Background image of page 2
Section A — Data Response Questions — Paper Specific Markscheme Question 1: IMF’s four steps to damnation Maximum Mark 2 2 Partial Mark 2 1 1 (a) With reference to the article, define the following terms highlighted in bold. (i) privatization (paragraph 2) y for a statement along the lines that privatization means the sell off of nationalized industries”. (ii) market-based pricing (paragraph 7) . y for a simple definition along the lines of prices being determined by the market y for a fuller definition that prices are determined by the forces of demand and supply. 4 (b) Use a supply and demand diagram to explain why market-based pricing (paragraphs 7 and 8) may result in higher prices. Allow [2 marks] for a properly-labelled diagram and [2 marks] for an explanation. y Diagram should show the removal of subsidies as a leftward shift of the supply curve showing a lower output and a higher price. y An alternative explanation and diagram might show a removal of price controls causing a higher price. – 3 – M03/330/H(3)M+
Background image of page 3

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

View Full DocumentRight Arrow Icon
Mark 4 Partial Mark (c) Explain why the IMF and the World Bank demand that nations in need of capital funds raise their interest rates (paragraphs 4 and 5) . Allow up to [3 marks] for one well developed relevant explanation. An increase in interest rates might: y attract capital flows y increase domestic savings y reduce the outflow of capital y be used to stabilize the currency y reduce inflationary pressure. 3 3 (d) Discuss one consequence of the IMF and the World Bank policies regarding free trade for each of the following: Allow [1 mark] for mention of a consequence and up to [2 marks] in addition for a well-developed explanation. (i) advanced industrialized countries y benefits of pursuing comparative advantage y greater choice y economies of scale y lower prices y increased exports y increase in structural unemployment. (ii) less developed agricultural countries. Allow [1 mark] for mention of a consequence and up to [2 marks] in addition for a well-developed explanation. y benefits of pursuing comparative advantage y greater choice y lower prices y economies of scale y increased exports y increased opportunity to diversify y benefits of export led growth y changing terms of trade y increased vulnerability to changing commodity prices y protectionism in MDCs y expansion of cash crops. – 4 –
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the 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 / 12

EcoHL P3 M03 M - INTERNATIONAL BACCALAURAT BACHILLERATO c...

This preview shows document pages 1 - 5. Sign up to view the full document.

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