TJC_H2_ECONS_P2_Mark Scheme

1 TJC 2014 H2 Economics Paper 2 Mark Scheme Question 1 (a) Using the concept of opportunity cost, explain why countries trade. [10] Level Description Marks L3 For an answer that uses diagrams and/or tables to effectively illustrate opportunity cost and comparative advantage 7 – 10 L2 For an answer that displays good understanding of opportunity cost and comparative advantage 3 – 6 L1 For an answer that displays knowledge of opportunity cost and comparative advantage, or for a brief and undeveloped answer 1 – 2 (b) In Singapore, the government levies a sales tax on cigarettes and tobacco products, and is amongst the highest in the world. In contrast, the Chinese government levies a comparatively lower sales tax and an additional import duty on cigarettes and tobacco products. Assess the economic case for these two different approaches. [15] Level Description Marks L3 For an analytical answer that justifies the economic case for the two approaches. This could include discussions on the limitations and unintended consequences of the policies. In order to score the full 11 marks, candidates must compare and analyse the economic case for the two different approaches. 8 – 11 L2 For an answer that displays good understanding of the economic objectives and the respective policies used to tackle these economic issues 3 – 7 L1 For an answer that displays knowledge of negative externality or demerit good, or for a brief and undeveloped answer 1 – 2 E2 Evaluative points that are well substantiated with evidence and clear theoretical analysis. 3 – 4 E1 Evaluative points that are not substantiated and without economic analysis 1 – 2

2 Question 2 Casual video game publisher G5 Entertainment has reported growth of 500% in mobile game downloads in 2011. Mobile games tend to be cheap or free with game upgrades that can be bought. That makes a mobile game cheaper than a $60 console game. Adapted from: News10, 29 Feb 2012 (a) Using relevant economic concepts, explain the likely reasons for the proliferation of mobile games downloads. [10] Level Description Marks L3 For an answer that explains demand and supply factors of mobile gaming with appropriate use of examples and diagrams AND uses elasticity concepts to account for the proliferation of mobile games downloads. 7-10 L2 For an answer that explains demand and/or supply factors of mobile gaming with appropriate use of diagrams. 4-6 L1 For an answer that shows some knowledge of demand and/or supply factors influencing mobile game downloads. 1-3 (b) Assess how related markets might be affected by the growth in mobile gaming. [15] Level Description Marks L3 For an answer that provides a well considered, balanced and well justified argument on how the related markets might be affected by the growth in mobile gaming. 9 - 11 L2 For an answer that provides an adequate analysis of the impact on related markets but answer lacks in scope and depth.