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221106经济期中卷Mark scheme

The document is a mark scheme for an IGCSE Economics mid-term test that contains two sections: Section A with 30 multiple choice questions and Section B with structured questions. Section B includes questions about capital goods, opportunity costs, production possibility curves, price elasticity of demand, and how increases in income can affect equilibrium price and quantity for flat screen televisions. The mark scheme provides suggested answers for the structured questions analyzing these economic concepts.

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36 views4 pages

221106经济期中卷Mark scheme

The document is a mark scheme for an IGCSE Economics mid-term test that contains two sections: Section A with 30 multiple choice questions and Section B with structured questions. Section B includes questions about capital goods, opportunity costs, production possibility curves, price elasticity of demand, and how increases in income can affect equilibrium price and quantity for flat screen televisions. The mark scheme provides suggested answers for the structured questions analyzing these economic concepts.

Uploaded by

qiqing he
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MARK SCHEME OF IGCSE ECONOMICS MID- TERM TEST

Section A. Multiple Choice Questions


Question Answer Question Answer
1 D 16 A
2 A 17 C
3 C 18 D
4 C 19 C
5 C 20 C
6 C 21 D
7 C 22 B
8 A 23 B
9 B 24 A
10 B 25 D
11 B 26 C
12 D 27 A
13 A 28 D
14 D 29 A
15 C 30 B

Section B. Structured Questions


Question 1
Answer all parts of Question 1. Refer to the source material in your answers.
(a) Identify one example of capital good. [2]
(b) Explain a possible opportunity cost of Pakistan government building more roads. [4]
(c) Analyse the effect of improvements in road infrastructure on the market for cotton. [6]
(d) Analyse, using a production possibility curve diagram, the effect of the change in labor
productivity on the economy. [6]
----------------------------------------------------------------------------------------------------------------------
Suggested answers:
(a) a Either farm machinery or roads.
(b) Opportunity cost is the loss of the best alternative. By spending on the road, the Pakistan
government may have given up the opportunity to spend more on education.
(c) Improvements in road infrastructure are likely to reduce the cost of transporting cotton. This
would lower the cost of producing cotton which would cause an increase in supply. Figure 1
shows that an increase in supply from SS to S1S1 will lower the price of cotton from P to P1
and lead to a rise in sales from Q to Q1.

(d) Improved labour productivity will increase the amount that workers are capable of producing.
This will increase an economy’s productive potential. This rise in the output that the
economy can produce is shown by a shift to the right of the country’s production possibility
curve as shown in Figure 2. The source material also mentions a fall in unemployment and so
the production point moves closer to the production possibility curve.

Question 2
The demand for flat screen televisions has increased enormously in many countries and this
has had an effect on the market.
(a) Define a normal good. [2]
(b) Describe what can influence the demand for flat screen televisions. [4]
(c) Explain what is meant by price elasticity of demand [4]
(d) Using a demand and supply diagram, analyse how an increase in income can affect the
equilibrium price and equilibrium quantity of flat screen televisions. [6]
(e) Discuss the potential usefulness of price elasticity of demand to a manufacturer of flat
screen televisions. [6]
Suggested answers:
(a) A normal good is a product that increases in demand when income increases. Most products,
including flat screen televisions, have this positive relationship.
(b)

(c)

(d)
(e)

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