| Date | November 2018 | Marks available | 15 | Reference code | 18N.1.SL.TZ0.4 |
| Level | Standard level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | To what extent | Question number | 4 | Adapted from | N/A |
Question
Explain how an increase in leakages can affect the size of the circular flow of income.
To what extent is the use of national income statistics an effective way of comparing the standard of living between countries?
Markscheme
Answers may include:
- definitions of leakages, circular flow of income
- diagram of the circular flow of income
- explanation that when leakages increase money flows in the circular flow of income will fall and reduce the size of the circular flow of income
- examples of where an increase in leakages have reduced national income.
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definitions of national income and standard of living
- diagram: a diagram is not required for this question
- explanation of how national income statistics are an effective way of making comparisons between countries
- examples of how national income statistics have been used to compare countries
- synthesis or evaluation (to what extent).
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.
Examiners report
Syllabus sections
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19N.3.HL.TZ0.2i:
Using the information in Table 2 for Country B, determine real GDP in 2014 and in 2015. Enter your results in Table 2.
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19N.2.HL.TZ0.3a.i:
State the reason for the difference between Ghana’s GNI per capita and its GDP per capita (Table 1).
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19N.3.HL.TZ0.2h.ii:
Using the information in Table 2 for Country B calculate nominal GNI in 2015. Enter your result in Table 2.
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19N.1.HL.TZ0.3b:
Discuss whether the real gross national income (GNI) per capita of a country is a good indicator of its standard of living.
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18N.3.HL.TZ0.3a:
Calculate gross domestic product (GDP) for Country X in 2015.
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18N.3.HL.TZ0.3b:
Calculate gross national income (GNI) for Country X in 2015.
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18M.3.HL.TZ0.2e.i:
Using the data in Table 3, calculate the level of investment.
- 21M.3.HL.TZ0.2b.i: Define the term price deflator.
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20N.2.SL.TZ0.1a.ii:
Define the term gross domestic product (GDP) indicated in bold in the text (paragraph [3]).
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21M.2.HL.TZ0.3a.i:
Define the term gross domestic product (GDP) per capita indicated in bold in the text (paragraph [1]).
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18N.1.HL.TZ0.4b:
Discuss the view that, apart from indicating economic growth rates over time, national income statistics are of little use.
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19M.2.SL.TZ0.3a.ii:
Define the term real gross domestic product (GDP) indicated in bold in the text (paragraph [2]).
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17M.2.HL.TZ0.02a.ii:
Define the term gross national income indicated in bold in the text (paragraph 3).
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19N.3.HL.TZ0.2h.i:
Using the information in Table 2 for Country B calculate nominal GDP in 2014. Enter your result in Table 2.
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21M.3.HL.TZ0.2b.iii:
Explain two reasons why an increase in real GDP per capita may not lead to an improvement in living standards.
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21M.3.HL.TZ0.2a:
Calculate Averna’s nominal gross domestic product (GDP) in 2019.
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21M.2.HL.TZ0.4c:
With reference to the data in Table 2, explain why the GNI per capita for Guatemala is lower than its GDP per capita.
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18M.3.HL.TZ0.2f:
Calculate the real growth rate in 2018 using the figures in Table 4 below.
Table 4
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21M.3.HL.TZ0.2b.ii:
Using your answer to part (a), calculate Averna’s real GDP per capita in 2019.
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21N.3.HL.TZ0.3i:
Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.
