NJC H2 Prelim 2024 Suggested Answers

© NJC 2024 9570/01/Sep/24 NJC 2024 SH2 H2 Econs P1 Suggested Answers Case Study Question 1 Suggested Answers (a) With reference to Extract 1, explain the reason for the large increase in consumption for animal -based proteins in developing countries. [2] ● When there is economic growth, households have higher income, thus resulting in an increase in demand for normal goods. [1] ● In developing countries where incomes are low, animal-based proteins are considered luxury goods. Therefore, there is a significant increase in demand for animal -based proteins. [1] (b) With reference to Extract 2, explain why there is “a downward trend in meat -eating but figures are still high” (Extract 2). [4] ● “The recent development of plant -based meat” (Extract 2) led to a decrease in the prices of plant-based meat. [1] ● Plant-based meat is considered substitute in consumption to meat. [1] ● When prices of plant-based meat decrease, there is a decrease in demand for meat, hence explaining the downward trend. [1] ● Nevertheless, “the figures are still high” because there is a lack of / weak public support (Extract 2) due to “cultural habits” (Extract 2), thus the decrease in demand is insignificant. [1] (c) With reference to Extract 3, (i) and using a demand and supply diagram, explain how the Environmental Land Management Schemes (ELMS) boost UK farmers’ income as a result of doing the right thing for the environment. [4] ● “Do the right thing for the environment, for example looking after hedgerows, grasslands and soils / large- scale rewilding projects / natural flood management, wetland restoration and enhancing forest (Extract 3), would increase the cost of food production to UK’s farmers. The increase in cost of production would reduce the income of UK’s farmer. [1] ● Government payments via the ELMS help lower the cost of food production when the farmers adhere to the higher environmental standards. This would increase the production of food as illustrated by the shift of the supply curve from So to S1 in Diagram 2. [1]

Diagram 1: The market for farmed goods ● As a result, no doubt UK’s farmer pre- subsidy revenue decreases from area P0E0Q00 to area P 1E1Q10, UK’s farmer post -subsidy revenue increases from area P 0E0Q00 to area (P1E1Q10 + P0E0AP2). [1] ● A well-labelled and well-referred to diagram. [1] (ii) explain the unintended consequence of UK’s higher environment standards in food production on its economy.