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2011年11月IB经济SL真题下载-Paper2

2021-08-02

2011年11月IB经济SL真题下载-Paper2

1. Study the extract and data below and answer the questions that follow.

New Zealand’s economy

(1)In April 2009, New Zealand reduced its interest rates to 2.5 %.

(2)The central bank governor said developments point to lower inflation than previously projected. The main factors behind this are weaker global economic growth and a stronger exchange rate than expected. 

(3)The world economy deteriorated more than expected in the first quarter of 2009 and the New Zealand economy remains weak. In addition, business sentiment is low, investment has fallen and unemployment has increased.

(4)We expect the large decline in the official interest rate over the past year together with the fiscal stimulus to support the New Zealand economy. However, it is likely to be some time before economic activity returns to healthy levels.

(a) Define the following terms indicated in bold in the text:

(i) economic growth (paragraph (2))

(ii) exchange rate (paragraph (2)).

(b) Using an appropriate diagram, explain the type of unemployment that a “weak”economy and reduced investment are expected to create (paragraph (3)).

(c) Using an appropriate diagram, explain how a stronger than expected exchange rate might affect aggregate demand in New Zealand (paragraph (2)).

(d) Using information from the text/data and your knowledge of economics,evaluate the likely effects of “the large decline in the official interest rate”together with the fiscal stimulus on the New Zealand economy (paragraph (4)).

 

2. Study the extract below and answer the questions that follow.

Toxic dump near Asopos River investigated 

(1)An Athens prosecutor has ordered an investigation into allegations that an illegal dump near the industrial zone in Viotia, is being used by a number of manufacturing firms to dispose of toxic waste, severely contaminating nearby Asopos River. 

(2)Researchers from Athens University have confirmed that river water has a concentration of 148 micrograms (mcg) of depleted chromium per kilogram (kg), and that local water is not suitable for irrigation or drinking. 

(3)High traces of toxins in river water have contaminated agricultural produce on sale in the shops and street markets of the area. Tests on carrots, for example, revealed concentrations of 663 mcg of nickel per kg, nearly six times higher than the international maximum level. Local residents also claim the negative externalities these manufacturers have imposed have caused an increase in cancer-related deaths. 

(4)The European Environment Commissioner has criticized the government for failing to introduce necessary policies to deal with the problems caused by the toxins in the river. The government responded by announcing that indirect taxes, direct regulation and new legislation are being considered to solve the problem. Indirect taxes could force polluting manufacturers to take all costs into consideration, but estimating the size of the necessary tax is complicated. A proposal that the government issues pollution permits allowing firms to trade them to achieve the optimal level of pollution has many theoretical advantages. However, these may be administratively complicated as there are many firms involved and they are small in size.

(a) Define the following terms indicated in bold in the text:

(i) negative externalities (paragraph (3))

(ii) indirect taxes (paragraph (4)).

(b) Using an appropriate diagram, explain why illegal dumping of toxic waste by these manufacturing firms is an example of a market failure (paragraph (1)).

(c) Using an appropriate diagram, explain the expected effect on the local carrot market resulting from the contamination of the river (paragraph (3)).

(d) Using information from the text/data and your knowledge of economics,evaluate the solutions that the government could employ to reduce the negative externalities caused by river pollution in Viotia.

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