2023 Prelim SL P2 Ans Collated

ACS(I) 2023 Y6 SL Economics Paper 2 Prelim Exam Suggested Answers Question 1 Suggested Answers ai) Define the term economic grow th (Text B, paragraph 2). [2] Level Marks 0 The work does not meet a standard described by the descriptors below. 0 1 Vague definition. 1 The idea that it is about the economy growing such as increase in actua l or potential output/national income/GDP, including idea about per head or per capita. 2 Accurate definition. 2 The growth of the real value of output in an economy over time. Usua lly measured as growth in real GDP. *give full credit if idea of an increase and real GDP / output / nat ional income is there. Markers’ comments Mostly well done, except for a handful which provided imprecise definitions, missing out on the concept of real value. a ii) Define the term tariffs (Text C, paragraph 1). [2] Level Marks 0 The work does not meet a standard described by the descriptors below. 0 1 Vague definition. 1 The idea that it is a bar rier to trade, tax on goods and services / indirect tax. 2 Accurate definition. 2 A duty (tax) that is placed upon imports to protect domestic ind ustries from foreign competition and to raise revenue for the government. *give full credit for the understanding that they are taxes (duty) on imports / expo rts. Markers’ comments Mostly well done, except some who were imprecise in their definitions. Students need to know that the definition of tariff as a trade barrier that reduce foreign supply and increase price of imports is imprecise as such a definition can also apply to quotas. STUDENTS MUST MEMORISE DEFINITIONS TO AVOID LOSING UNNECESSARY MARKS. 1

ACS(I) 2023 Y6 SL Economics Paper 2 Prelim Exam Suggested Answers  2  bi) Using a business cycle diagram, indicate where China is on the business cycle in 2021. (Table 1). [3] 1m for fully labelled diagram; 1m for correctly drawn business c ycle 1m for indicating that China’s economy is in the expansion/recovery phase (in between a trough and peak). *Diagram title not necessary. Long term growth trend not needed. Markers’ comments Students lost marks because of wrong labelling of axes, wrong business cycles (no downswings) or incorrect indication of China’s position on the business cycle. bii) Calculate China’s unemployment rate in 2021 (Table 1). [2] Unemployment rate = [1 – (746.52m/780.24m)] * 100% = 4.32% 1m for valid working and 1m for correct final answer. Markers’ comments Well done except for minority that calculated based on the wrong year. c) Using a demand and supply diagram, explain how rising affluence of Chinese households can impact the market for residential housing (Text B, paragraph 2). [4] Level Descriptor Marks 1 There is a correct diagram or an accurate written response. 1-2 For drawing a correctly labelled demand and supply diagram sh owing the rightward shift of demand and increase in price and quantity OR for the explanation that rising affluence of C