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Date November 2018 Marks available 10 Reference code 18N.1.SL.TZ0.4
Level Standard level Paper Paper 1 Time zone Time zone 0
Command term Explain Question number 4 Adapted from N/A

Question

Explain how an increase in leakages can affect the size of the circular flow of income.

[10]
a.

To what extent is the use of national income statistics an effective way of comparing the standard of living between countries?

[15]
b.

Markscheme

Answers may include:

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

a.

Answers may include:

Evaluation may include: consideration of the limitations of national income statistics to compare living standards such as: different methods of calculation, the impact of different types of output on living standards, environmental factors, crime levels, political instability, the exchange rate and income distribution.

NB Definitions, theory, and examples that have already been given in part (a), and then referred to in part (b), should be rewarded.

Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.

Opinions or conclusions should be presented clearly and should be supported by appropriate examples.

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.

b.

Examiners report

[N/A]
a.
[N/A]
b.

Syllabus sections

Last exams 2021 » Section 2: Macroeconomics » 2.1 The level of overall economic activity » Economic activity » The circular flow of income model
Last exams 2021 » Section 2: Macroeconomics » 2.1 The level of overall economic activity » Economic activity
First exams 2022 » Unit 3: Macroeconomics » 3.1 Measuring economic activity and illustrating its variations » 3.1.2 Three measurements of national income with reference to the circular flow.
Last exams 2021 » Section 2: Macroeconomics » 2.1 The level of overall economic activity
First exams 2022 » Unit 3: Macroeconomics » 3.1 Measuring economic activity and illustrating its variations
Last exams 2021 » Section 2: Macroeconomics
First exams 2022 » Unit 3: Macroeconomics
First exams 2022
Last exams 2021

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