EcoHL P3 M02 M

EcoHL P3 M02 M - INTERNATIONAL BACCALAURAT BACHILLERATO c...

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MARKSCHEME May 2002 ECONOMICS Higher Level Paper 3 14 pages M02/330/H(3)M INTERNATIONAL BACCALAUREATE INTERNATIONAL BACHILLERATO INTERNACIONAL c
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SECTION A Question 1 : Maximum Mark 2 Partial Mark 1 1 (a) With reference to Item 1, briefly describe the main changes in the pattern of banana exports between 1988 and 1997. ! for recognising the very large increase in world exports of bananas (approx 70%) ! for noting that the bulk of this increase occurred in Latin America 2 1 1 (b) Use Item 2 to help you describe the market structure of the banana industry. ! for stating that the industry is oligopolistic ! for briefly illustrating this from the data 4 2 4 (c) With reference to Item 3, explain why ±more than 90 % of the price paid by consumers stays in the North and never reaches the producer². ! split± ! for a broader answer in terms of the power of MNCs to control production, distribution, price, etc. 4 1 2 3 (d) With reference to Item 4, (i) explain what is meant by the sentence, ±Bananas from the plantations of Central and South America are ³cheaper´ than anywhere else & largely because the costs are externalised²; ! for simply paraphrasing the passage in a relevant manner ! for explaining that social cost equals internal costs plus external costs ! bananas (producers do not bear the full social cost) 6 2 5 3 3 (ii) how might the costs of banana production be internalised? ! for an accurate explanation of the meaning of internalisation of the costs of banana production ! for a full explanation of the use of taxation on banana producers, probably involving the use of a diagram ! for discussing the possibility of nationalisation ! for examining the use of minimum wage legislation Reward other plausible suggestions. ² 3 ² M02/330/H(3)M
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(e) Using the data provided and your own knowledge of economics, discuss the problems faced by economies dependent on the export of agricultural products. Issues for discussion might include ! instability of prices ! importance of income and price elasticities ! terms of trade ! control and dominance of the market by MNCs ! dependence on MDC trade cycles ! implications of debt servicing obligations ! welfare implications ! impact on ability to import essential goods 0 1-2 3-4 5-7 Level 0 No valid discussion. Level 1 Very few relevant issues recognised with little discussion or basic understanding. Level 2 A few issues recognised with some attempt at discussion or just one issue well-developed. Level 3 Issues well developed with some reference to the data and with sensible evaluation.
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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 M02 M - INTERNATIONAL BACCALAURAT BACHILLERATO c...

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