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O level 2006 sample Economics paper and marking scheme
Posted by Economics Corner
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You can download the 2006 paper and marking scheme from
http://www.cie.org.uk/qualifications/academic/middlesec/olevel/subject?assdef_id=906
Just a glimpse of the paper Q1:
Trade and production in Bangladesh
At one time, international trade agreements ensured an export market for clothes made in Bangladesh, but these were due to end in 2005. It was feared that many workers in Bangladesh would lose their jobs as a result. The Foreign Minister hoped that the trade in medicines would grow sufficiently to reduce that unemployment. The Foreign Minister said that in 2004 Bangladesh was exporting medicines to 60 countries and could produce them up to 70% cheaper than the Developed World. He said that if Bangladesh, a developing country, could get 2% of the global trade in medicines it could be worth many times the clothing exports that Bangladesh had lost.
In 2004, 150 local firms and 6 multi-national companies manufactured medicines in Bangladesh. However, the production of medicines employed just 50 000 workers and most future jobs would require highly trained technicians. The clothing trade employed 1.8 million unskilled workers and accounted for more than 75% of Bangladesh’s exports.
(a) State four ways in which multi-national companies can help developing countries such as Bangladesh. [4]
(b) International trade agreements can protect jobs. Despite this, some economists prefer free trade to trade agreements. Explain why. [6]
(c) Summarise the main argument of the Foreign Minister of Bangladesh. [4]
(d) Why might it be difficult for employment in the clothing industry to be replaced by employment in the manufacture of medicines? [6]
1 (a) employment, multiplier effects (do not expect this term), boost to exports, by encouraging development of new skills, introducing new technologies, improved working conditions, any other valid points, e.g. improvement in infrastructure.
1 mark each, maximum (4). [4]
(b) Analysis of the idea of specialisation and opening markets worldwide, production at lower costs, increased efficiency, more competition, wider choice, lower prices. Note: core candidates are required to know about specialisation at international level but not about comparative advantage.
Identification up to 3 marks. Explanation up to 3 marks. [6]
If candidates only deal with the first sentence, maximum of 4 marks.
(c) There will be unemployment if clothing manufacture ceases (1), but this could be replaced by manufacture of pharmaceuticals (1), boost exports (1), the great advantage that B has, was that its production was much cheaper than other countries (1). Straight copying: 2 marks maximum. [4]
(d) One industry is very labour intensive, the other is not. 50,000 currently in medicines, 1.8m currently in clothing.
http://www.cie.org.uk/qualifications/academic/middlesec/olevel/subject?assdef_id=906
Just a glimpse of the paper Q1:
Trade and production in Bangladesh
At one time, international trade agreements ensured an export market for clothes made in Bangladesh, but these were due to end in 2005. It was feared that many workers in Bangladesh would lose their jobs as a result. The Foreign Minister hoped that the trade in medicines would grow sufficiently to reduce that unemployment. The Foreign Minister said that in 2004 Bangladesh was exporting medicines to 60 countries and could produce them up to 70% cheaper than the Developed World. He said that if Bangladesh, a developing country, could get 2% of the global trade in medicines it could be worth many times the clothing exports that Bangladesh had lost.
In 2004, 150 local firms and 6 multi-national companies manufactured medicines in Bangladesh. However, the production of medicines employed just 50 000 workers and most future jobs would require highly trained technicians. The clothing trade employed 1.8 million unskilled workers and accounted for more than 75% of Bangladesh’s exports.
(b) International trade agreements can protect jobs. Despite this, some economists prefer free trade to trade agreements. Explain why. [6]
(c) Summarise the main argument of the Foreign Minister of Bangladesh. [4]
(d) Why might it be difficult for employment in the clothing industry to be replaced by employment in the manufacture of medicines? [6]
1 mark each, maximum (4). [4]
There is no mark for a definition of a multi-national company.
(b) Analysis of the idea of specialisation and opening markets worldwide, production at lower costs, increased efficiency, more competition, wider choice, lower prices. Note: core candidates are required to know about specialisation at international level but not about comparative advantage.
Identification up to 3 marks. Explanation up to 3 marks. [6]
If candidates only deal with the first sentence, maximum of 4 marks.
(c) There will be unemployment if clothing manufacture ceases (1), but this could be replaced by manufacture of pharmaceuticals (1), boost exports (1), the great advantage that B has, was that its production was much cheaper than other countries (1). Straight copying: 2 marks maximum. [4]
(d) One industry is very labour intensive, the other is not. 50,000 currently in medicines, 1.8m currently in clothing.
Occupational immobility of labour. e.g. lack of skills.
Multi-national companies may be wary of locating in Bangladesh, due to possible instability.
(Note – we do not expect candidates to demonstrate a detailed knowledge of Bangladesh.) [6]
Multi-national companies may be wary of locating in Bangladesh, due to possible instability.
(Note – we do not expect candidates to demonstrate a detailed knowledge of Bangladesh.) [6]
