ARRSSIS FOR TEACHERS* USE unter S6-CE-ECON | Marking Scheme ‘Please pote that the anrwers eepgested in the marking scheme are oot necessarily the only possible answers to the questions. All well-reasoved slternstive anrwers are seceptable. ‘Section A Matis 1. (The cost decreased / changed’ the value ofthe concert lowered / changed, 2 (©) ~ No change-renjoyment in the karaoke lounge is not an option forgone. 2 aay o0e = No changesthe value of the concert has not changed /the cost is sill the cones. 24 max:2 [Mere identiscation ofthe concert asthe highest-valued option forgone — max 1 markfor the whole question} 2. Secoadary production — food materzis are cooked inthe shop and tumed into cooked food 2 a ‘Teniany production — whea having meals, customers are served by waiters in the shop. 3. (@) Public limited company 1 Advantages: = Brnited Libis los of an owner of the firm is confined to his izvesuent in the ‘firma flower rise in iavesune = legal entity: the frm can act as a lege person to make contracts, to own properties and be sued/proSit or less belongs to the firm, not the owners. = wider source of capita + Jower risk in investment enovurages more investors (even without professional shlls inthe business) to invest, = economies of scale | 2G = easy transfer of shares : an investor can convert his shares into cosh with ease = professionals to run the business separation of ownership and manegement and economies of scale = Tesing continuity withéranal, e. 2 Erm's existence not affected by any investor's death, | (Mark the FIRST TWO poizis ony) (2) Not included. 4. (2) GDP at facor com increase? By $2000 1 2s itis a current production, / The $2000 is included in the government expeaditure of the current year. 1 (@) A trafic light is a man-made resource used for production, sont ARBRE FOR TEACHERS’ USE ONLYFRPP ARE SS-.CE-ECON [Marking Scheme Monks 5, Mooopolisic competition 1 ‘Any three kinds of price or no-peice competition, (Mark the FIRST THREE pots oaly) 6 510000 2 nea nagein 1991 = 122 00650553 Real wage in 1995 = $1200? «109 = 53000 cna age dares dicainease seat waeia sostrton et» 222, 129-500 es1000 J J teal nage decreased, Change in price index: HOT? 225% 12000-51000.” (Change in salary : = = 320% ‘$1000 real wage decreased 7 Mt ‘change in the expowst of cash held by the non-bank public + change in the Heensed banks 50-20) ma. emand deposits wi 0+5G0~20) ma, 4510 ma, AM2 = AMI + change in the ime aod sivings deposits with licensed banks + change in it igoued by licensed banks and beld by the a 3 1 1 he negotiable coricates of ees 1 so-bank public = +510 mn. + {40 +30) 1 go+ 20) aa, inthe change in the amount of cath beld by the non-tenk public + clans sed taal aa cersand deposits = $(30~ $0) ma. + 5% =o M2 = AMI + change inthe tins end sevings deposits wit Hoensod backs + change in] tbe egotable coreScates of deposit issasd by Licensed banks and held by the 1 non-bank public = 04+ S[(40-+ 30) ~ (40+ 209] ma /= + $[(40 + 30) ~ (40 + 40)) ma = -s10ma sece-scon 113 AEBSF = FOR TEACHERS' USE ORLYS6-CRECON [Marking Scheme 8, Store of value — less purchasing powcr of the same amount of moncy Suandend of deferred payment — the real valve of money denrescs/erditrs prefer immediste cash to post-eated cheques ‘Medium of exchange — the real yah of moncy decreasss/ the general acceptability of money is adversely affected (in times ofa hyperinflation) (Mark the FIRST TWO poists only] 8 @) $Q4-35417-19) mn /-S13. ma. (0) There is 2 balance of peyments deficit of $28 mn There isa deficit inthe current and capital accounts. Effective communication for Section A osceecon ru ABBSYERSBS «=—-FOR TEACHERS’ USE ONLY 28