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    4K views10 pages

    2003 Economics Paper 1 Marking Scheme

    Uploaded by

    api-3700944

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF or read online from Scribd
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    of 10
    PBR aN eS FOR TEACHERS’ USE ONLY ‘Alternative answers are’acceptable so long as they are well reasoned. eons Sa OT) 7 a Section A 1 Unit price (eo D\e jemand (atthe income restriction of $21 000) XDN Nd, 0 > casey smaller or even zero excess demand Indicate in the diagram : ‘constant price (P) below the equilibrium price = excess demand at the income restriction of $21 000 (demand is D, D,) ' 1 1 1 demand curve shifts :o the let eae ~_ eign ler pn pando even ae ec demand se Ra) sae ee atta tame eee i ee) OB BAD BES arn aoe Ye osis Ody CE ey Verbal elaboration : the fixed price is below the equilibrium price 1 excess demand at the beginning 1 demand falls ue to farther income restriction \ 1 4H 2. (a) The law stetes that as the variable factor is continuously added to the fixed factor, the rarginal product will eventually dim ora 3 ; / Facet PG part > (ep Continnsetly / mors wears [SLC | “oly suction PL! 19> AP Covey) iG cops ry taal cele) oo 6.0 (%) [Machine (Unit) MP (Unit) 1 2 4 | 3 16 - 4 10 pease eee) | Re It illustrated the law in (a) since MP eventually diminishes fiom 16 units of ouput to 1Gunits of ouput Cov *) 2 C Comelust on) when the 4 unit of machine is added tothe production. tufte- Path vgret=-) 1 ESF HA tows tele be) a Lee we add VE, WP 2003-CE-ECON 1-12 pp syem28B§ FOR TEACHERS’ USE ONLY A pra eS a FOR TEACHERS’ USE ONLY “Aleroative answers are acceptable so Tong as they are well reasoned miniba [EAT Ce) Mans aes Vim. 3. (General parmership. “7 1 io a ys ‘ fcr = unlimited lability \ = cach partner is fully liable for the firm's debt all pariners are bound by other partners’ business decisions Bm ~ number of partners ranges from 2 to 20 1@, difficult to admit or wthdrave partners max:2 = easy to setup and dissolve oe ny other relevant point Cady of (eEAKH) COE) [Mari the FIRST TWO points only) 4. many seers /many buyers Keen, oration ty > allfirms age pricetakers. — tin (e eee” — mgs - 2% ~ perfect information —. a) pried 3 > free entryand exit) Pans ent AT any other relevant point yo Fen at i [Mark the FIRST TWO points only) fe adaedthiy cv) 2003-CE-ECON 1-13 FAPRaNeeBY FOR TEACHERS’ USE ONLY RiRMAS FOR TEACHERS’ USE ONLY ‘Alternative answers are acceptable so long as they are well reasoned. Eh vase GW? te Mans argiz Oy Per capita real consumption expenditure in 1992, = $2300. 1 epee willis) (ysl) SAT = $500 1 Cay nese) $2679 mx 122 Per capita real consemption expenditure in 2002 = a 1 = s470 ' ie AE AN Uk ' suit with —_\A higher per capita r2al consumption expenditure in 1992)=> a higher general living standard in can ox heaseied 1992, 5; 2 ase | SC preph red Ct BF os - RE 1 1 95-100 Change in price index. = ae 100 7 =-5% 1 {U1 in price index <4 in per capita nominal consumption expendinze 1 a higher general living standard in 1992, 1 Aliemative answer 2 $2679: 22 -s2s00m : ‘Change in real consunpption expenditure = 2 7 a $2500m = + 128% 1 im — 5m. Change in population = ge in pop ea 1 = + 20% 1 7 in real consumption expenditure

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