Economics Ib Paper

c IB DIPLOMA PROGRAMME PROGRAMME DU DIPLÃ"ME DU BI PROGRAMA DEL DIPLOMA DEL BI N06/3/ECONO/SP1/ENG/TZ0/XX/M+ MARKSCHEME November 2006 ECONOMICS Standard Level Paper 1 7 pages 2 N06/3/ECONO/SP1/ENG/TZ0/XX/M+ This markscheme is confidential and for the exclusive riding habit of examiners in this examination session. It is the property of the International Baccalaureate and must(prenominal) not be reproduced or distributed to any other psyche without the authorization of IBCA. 3 N06/3/ECONO/SP1/ENG/TZ0/XX/M+ In addition to the assessment criteria use the paper-specific markscheme below. Award up to the maximal marks as indicated. 1. (a) Explain why under purvey of merit goods in an economy is considered to be a commercialize failure. Candidates whitethorn complicate any of the followers: definition of market failure definition of merit good explanation of positive externalities how the underprovision of merit goods leads to market failure diagram of underprovision of merit goods example of merit goods hearty benefits and marginal social benefits Examiners should be aware that candidates may reappearance a different approach, which if appropriate should be rewarded. (b) Evaluate the executable measures that a government might use to correct such a market failure.

Candidates may include any of the following: government financing the production of the good direct provision of merit goods subsidies legislation to make consumption of the good or service mandatory advertising to encourage consumption Candidates may illustrate government measures with examples. Examiners should be aware that candidates may follow a different approach, which if appropriate should be rewarded. Effective military rank may be to: consider short run versus great run consequences examine the impact on different stakeholders dispute advantages and disadvantages prioritize the arguments [10 marks] [15 marks] 4 2. (a) N06/3/ECONO/SP1/ENG/TZ0/XX/M+ [10 marks]... If you involve to get a full essay, order it on our website: Orderessay

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