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Unformatted text preview: INTERNATIONAL BACCALAUREATE M99/330/H(2)
BACHILLERATO INTERNACIONAL ECONOMICS
Higher Level Monday 17 May 1999 (afternoon) Paper 2 1 hour This examination paper consists of 6 questions.
The maximum mark for each question is 10. The maximum mark for this paper is 40. INSTRUCTIONS TO CANDIDATES DO NOT Open this examination paper until instructed to do so. Answer FOUR questions. Use diagrams where appropriate. EXAMINATION MATERIALS Required:
None Allowed: A simple translating dictionary for candidates not working in their own language 229-041
2 pages - 2 - M99/330/H(2) 1. The choice between military products and the provision of health care illustrates the problem of ‘opportunity cost’. Explain the nature of this problem, using a production possibility
frontier to help you. 2. Using a suitable diagram, predict what is likely to happen to efﬁciency when a competitive
industry is monopolised. ' 3. Why might an increase in government expenditure have a greater multiplier effect than a
corresponding reduction in direct taxes? 4. Explain why a deterioration in the terms of trade could bring about an improvement in the
balance of payments on current account. 5. Outline the possible advantages of a country specialising in manufactured goods instead of
primary products. 6. What is structural unemployment, and what measures might governments take to combat it? 229-041 ...
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