案例经济试卷

UNIVERSITYOFCAMBRIDGEINTERNATIONALEXAMINATIONS

InternationalGeneral ofSecondaryEducation

ECONOMICS 0455/22

Paper2StructuredQuestions October/November2011

2hours

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SectionA

AnswerQuestion1.

SectionB

Answeranythreequestions.

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2

SectionA

Answerthisquestion.

ThestrugglesoftheIvoryCoast’scocoafarmers

Cocoapriceshavehita30-yearhighduetodemandexceedingsupply.

ProductionofcocoaintheIvoryCoast,whichprovidesaboutathirdoftheworld’scocoabeans,hasfallenasaresultofpoorweatherandunder-investmentintheindustry.The2009harvestwasbadlyaffectedbydryweather,pestsanddisease.

AspokesattheInternationalCocoaOrganisationcommented,“Wehavenowhadthreeconsecutiveyearsofsupplydeclining.Withcurrentproductionmethods,theIvoryCoasthasreachedumoutput.Farmersdon’tusemanychemicalsandpesticides.Theyneedtoinvestmoreinchemicalsandotherfarmingtechniquestoincreasetheiryields.”

Thedemandforcocoahastogrow.Thefashionformoreexpensive,high-qualitychocolatehashelpedtoincreasedemandasittypicallyhasahighercocoacontent.

AspokesfromtheFairTradeAssociationcommented,“Thelarge,unpredictablefluctuationsinthecocoamarketmakelifeextremelydifficultforfarmers.”

TheernmentoftheIvoryCoastisnningtocreategreaterstabilityinthecocoamarketbyregulatingtheindustry.Itisthinkingofsellingthecocoaitselfandalsofixingtheprice.Iftheernmentfixedthepriceforcocoa,thefarmerswouldbelessvulnerabletofluctuationsinprices

duetochangesindemandandsupplyfactors.

(i) Stateonereasonfortheincreaseindemandforcocoa. [1]

(ii) Statetworeasonsforthedecreaseinsupplyofcocoa. [2]

Exin,usingademandandsupplydiagram,howthechangesinthedemandforandthesupplyofcocoahaveaffectedtheequilibriumpriceandequilibriumtyinthecocoamarket. [6]

Exinwhythelarge,unpredictablefluctuationsinthecocoamarketmakelifedifficultforcocoafarmers. [3]

Discusswhetheraneconomywouldbenefitfromitsernmentinterveningtoregulateanindustry. [8]

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SectionB

Answeranythreequestionsfromthissection.

Allcountriesfacethebasiceconomicprobleminrelationtothefactorsofproduction.mightallocatemoreresourcestoeducationandhealthcarethananother,buttherewillalwaysbeanopportunitycostinvolvedinsuchdecisions.

Whydoallcountriesfacethebasiceconomicproblem? [4]

Stateandexinthefactorsofproduction. [4]

Defineopportunitycostandexinwhyitisanimportantconceptforeconomists. [4]

Discusswhetheraernmentshouldallocatemoreresourcestoeducationandhealthcareratherthanotherformsofexpenditure. [8]

TheernmentofBangladeshisnningtobuildanewmotorwaywiththehelpofprivatecompanies.Itrecognisesthatthereareanumberofcostsandbenefits,bothprivateandsocial,thatneedtobetakenintoaccountbeforeafinaldecisionistaken.

Exinwhatismeantby(i)aprivatecost,(ii)aprivatebenefit,(iii)anexternalcostand

(iv)anexternalbenefit. [4]

Foreachofthefollowing,identifyoneexampleof(i)aprivatecost,(ii)aprivatebenefit,

(iii)anexternalcostand(iv)anexternalbenefitthatmightbeinvolvedinthebuildingofamotorway. [4]

Whymightaernmentwanttoinvolveprivatecompaniesinamotorwayproject? [4]

Discusshownearbycommunitiesarelikelytobeaffectedbythebuildingofamotorway. [8]

TradeunionsyaroleintheNewZealandeconomy,butnoteveryworkerbelongstoone.Thisisespeciallythecaseinsmallfirms.

Describethefunctionsofatradeunion. [4]

Whymightsomeworkersnotbelongtoatradeunion? [4]

Exinwhysmallfirmscontinuetoexistinmosteconomies. [4]

Discusswhetherfirmsalwaysbenefitfromgrowinglarger. [8]

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TheernmentofNigeriahasanumberofeconomicaims.Oneoftheseistoincreasetherateofeconomicgrowthinthecountry.Itrecognises,however,thatthisaimcouldwithsomeofitsotheraims.

Describewhatismeantbyeconomicgrowth. [2]

Statefoureconomicaimsaernmentmayhave,otherthaneconomicgrowth. [4]

Describethepoliciesthataernmentmightadopttoincreasetherateofeconomicgrowthinitscountry. [6]

Discusswhethereconomicgrowthswiththeachievementoftheotherernmenteconomicaims. [8]

Thereareover200countriesintheworldandtheyvaryenormouslyintermsoftheirlevelofdevelopmentandextentofpoverty.Manyofthedevelocountrieshavehighratesofpopulationgrowth.

Describewhataneconomistwouldneedtoknowtodecidewhetheracountryshouldbeclassifiedasdevelopedornot. [6]

Exinwhatinfluencesacountry’sbirthrate. [6]

Discusswhetherencouragingmulti-nationalcompaniestosetupinacountrywouldreducethatcountry’slevelofpoverty. [8]

TheWorldTradeOrganisationaimstoencouragetradebut,despiteitsbestefforts,tradeprotectionisstillcarriedoutbymanycountries.

Exinwhycountriesspecialiseinproducingdifferentgoodsandservices. [4]

Identifyanddescribetwomethodsoftradeprotectionwhichaernmentmightuse. [6]

Discusswhethertheadvantagesoftradearesogreatthatnocountryshouldeverthinkabouttryingtoprotectitsownindustries. [10