M99/320/HS(2) INTERNATIONAL \ BACCALAUREATE BACCALAUREAT INTERNATIONAL BACHILLERATO Y INTERNACIONAL GEOGRAPHY Higher Level and Standard Level Monday 10 May 1999 (afternoon) Paper 2 2hours This examination paper consists of six questions. ‘The maximum mark for each question is 20. ‘The maximum mark for this paper is 60. INSTRUCTIONS TO CANDIDATES Do NOT open this examination paper until instructed to do so. Answer any THREE questions. EXAMINATION MATERIALS. Required: None Allowed: A simple translating dictionary for candidates not working in their own language 29.007 7 pages23e M99/320/HS(2) ECONOMICALLY MORE — ECONOMICALLY LESS DEVELOPED DEVELOPED COUNTRIES COUNTRIES 2100 The diagram shows the growth of world population since 1950, projected to the ‘year 2100, with population figures shown in billions. (a) Describe the changes in the sizes of the populations of economically more developed countries and economically less developed countries since 1950, and the projections to 2100. [4 marks} (b) Give reasons to explain the past changes and future projected changes which are shown in the diagram [6 marks] (© Using appropriate diagrams, compare the population structures of economically more developed countries and economically Jess developed countries today. [4 marks] (d) Describe the possible consequences for economically more developed and economically less developed countries of the population growth projected to the year 2100. [6 marks] 229.027eg M99/320/HS(2) 2 high yield seeds better fertilisers : pesticides irrigation more machinery farmer needs to invest more capital to increase production _ jmeeseae for crops increasing crop yields higher food production The diagram above shows some economic consequences of agricultural change in economically less developed countries. (@) Explain how accurately the diagram shows the impact of the Green Revolution. [4 marks} (b) Describe the extent to which the Green Revolution and other agricultural changes have eased global food shortages over recent decades. [6 marks} (©) Identify the current problems in world food supply, and suggest realistic solutions which might ease the situation, 110 marks} 229-027 Turn over4. M99/320/HS(2) short term intense) e earthquake e landslide @ 12122804000 effect e@ flood long term (diffuse) low predictability high The diagram above shows a selection of hazards according to the effect and predictability of each. (a) Describe the pattern shown in the diagram. (0) Classify the hazards shown as @ land-based. (i) atmosphere-based. (iii) hazards which arise due to the interaction of the atmosphere and land. (©) Choose three of the hazards shown, and for each of the three hazards chosen, describe (@ the causes of the hazard. Gi) the reasonable human response in view of its effect and predictability. 229.027 [5 marks] 13 marks} [12 marks]-5- M99/320/HS(2) ZY G Annual rate of population growth Q (percentage) 2 z 3.0 and over 2.0-2.9 10-19 Less than 1.0 The map above shows the average annual rate of population growth for most countries of the world. (2) Explain why population growth tends to be most rapid in countries with lower levels of economic development. [10 marks] (b) Identify two countries in different categories of population growth on the map above, and compare the population policies of the two countries. [10 marks} 229.027 ‘Turn over5. Delhi, India Sydney, Australia The photographs above show the central areas of two major world cities ~ Delhi, India (left) and Sydney, Australia (right), (@) Describe and suggest reasons for the differences in the urban morphology of the two areas shown in the photographs. (b) Using appropriate sketches, describe three models of urban morphology, and suggest briefly the extent to which each might apply to the areas shown in the photographs. (© With reference to specific cities, compare the geographical problems experienced in cities in economically less developed countries with the geographical problems experienced in cities in economically more developed countries. 229-027 1M99/320/HS(2) [5 marks} [9 marks] [6 marks}-7- M99/320/HS(2) 6 FORCES SLOWING DOWN ECONOMIC DEVELOPMENT * Growth of tertiary sector + Growth of manufacturing + Strong agricultural growth + Economic reforms + Export growth + Migration + Difficult physical environments + Political instability + Debt + Environmental degradation + Historical geography FORCES SPEEDING UP {Lom investment ECONOMIC DEVELOPMENT + Dependence on primary product exports The diagram above shows some of the forces which are said to slow down economic development, and some of the forces which are said to speed up economic development. (a) With reference to a specific country, rank the ‘forces slowing down economic development’ in the diagram from most important to least important, and justify your ranking. (10 marks] (b) Select a country which may or may not be the same country as you used in (a). With reference to this country, rank the ‘forces speeding up economic development’ in the diagram from most important to least important, and justify your ranking. [10 marks) 229.027INTERNATIONAL M99/330/H(1) BACCALAUREAT. BACHILLERATO BACCALAUREATE INTERNATIONAL INTERNACIONAL. ECONOMICS Higher Level Monday 17 May 1999 (afternoon) Paper I 1 hour This examination paper consists of 40 questions. Each question offers 4 suggested answers. ‘The maximum mark for this paper is 40. INSTRUCTIONS TO CANDIDATES Do NOT open this examination paper until instructed to do so. Answer ALL the questions. For each question, choose the answer you consider to be the best from the 4 answers given. Indicate your choice on the answer sheet provided. EXAMINATION MATERIALS Required: Optically Mark Read (OMR) answer sheet Allowed: A simple translating dictionary for candidates not working in their own language Calculator 29.040 18 pages= M99/330/H(1) 1. Economics is primarily concerned with the question of how A. limited human wants may be satisfied through the use of limited resources. B. unlimited factors of production can be best allocated for different uses. C. limited government funds should be used to achieve specific social and political goals. D. unlimited human wants can be satisfied using limited productive resources. 2. The diagram below depicts two production possibility curves YX and YZ. Computers Zz x 0 rv Textiles The shift of the curve from YX to YZ could have been caused by A. more resources being allocated to the production of computers. B. labour shortages in the textile industry. C. shifts in the pattern of demand as between computers and textiles. D. improved technology in the computer industry. 3. A basic difference between a centrally planned economy and a market economy is that in a planned economy A. there is always an equal distribution of income and wealth. B. factor and product markets are perfectly competitive C. resource allocation is achieved through directives rather than prices. D. substantial subsidies are granted to private sector production. 229-040-3- M99/330/H(1) The diagram below shows the market for fresh fish. Price of fish 2 AQ Quantity of fish demanded and supplied ‘The shift of the supply curve from S to S, is most likely to have resulted from A. an increase in wages in the fishing industry. B. improved technology in the fishing industry. C. an increased preference for fish on behalf of consumers. D. a fall in consumer incomes. An increase in the price of good X causes a fall in the demand for good Y. This could be explained by I. X and Y being in joint demand. Ii. good ¥ being an inferior good. UL. X and Y being substitutes. Lonly Tand I only Mand HII only pow > 1, I and I 729.040 Turn overM99/330/H(1) 6. A rise in house prices may be caused by a fall in yo F > I. interest rates, II. house building, IIL. the level of disposable incomes. I only Tand I only Tand III only 1, Mand 7. A parallel market for a product is most likely to arise as a result of A B, iC D. the setting of a minimum price above the equilibrium, a substantial shift of the demand curve to the right. a sudden reduction in supply. the imposition of a maximum price below the equilibrium, 8 Which of the following is a characteristic of a merit good? A B. c D. It could be provided by the free market, but not in sufficient quantities. It is always provided free to consumers It tends to generate negative externalities, so governments restrict its consumption. Once the good has been supplied to one consumer, there is no additional cost in supplying it to others. 9. A person's income rises from $16 000 per year to $20 000 per year. Subsequently, spending on clothes by this person rises from $1000 to $1500 per year. This person’s income elasticity of demand for clothes is A B. c D. 229.040 income clastic. unit elastic. income inelastic. cross elastic.-5- M99/330/H(1) 10. The following data represents the supply and demand schedules for particular commodity over a given period of time. Price per unit (€) | Quantity demanded | Quantity supplied 10 40 80 9 50 70 8 ro 60 7 70 50 6 80 40 If a subsidy of £2 per unit was paid to producers of this commodity by the government, the new equilibrium price would be A. £9, B. £8. Cc. £7. D. £6. 229-040 ‘Turn overM99/330/H(1) 11, The diagram below shows the total costs (TC) of producing good X. TC Output Which of the following statements is/are correct? I. Atan output of 3 units, average fixed costs are $20. Il. At an output of 3 units, total variable costs are $60. TIL The marginal cost of the third unit of output is $20. only Tand II only If and III only LU and 1oa 1M99/330/H(1) 12, The table below shows weekly output from Plant Z, using different factor input combinations. PLANTZ OUTPUT PER MONTH (TONS) Units of Capital Input Units of Labour Input Tt can be deduced from the data that Plant Z exhibits increasing returns to I. labour. Il. capital. MIL. scale. A. Tonly B. Iand If only C. Wand I only D. 1,Wand i 13. For a price discriminating monopoly to be both possible and profitable, itis necessary that A. average cost equals average revenue. B. two or more markets with different demand elasticities can be separated, C. the monopolist is achieving economies of scale. D. demand for the product is relatively inelastic. 229-040 ‘Turn overM99/330/H(1) 14, The diagram below shows the cost and revenue curves of a firm. Costs and MC Revenues Q ‘Output ‘The shaded area of the diagram could represent, A. normal profits in imperfect competition. B. monopoly costs. C._ oligopoly profits. D abnormal profits.-9- M99/330/H(1) 15. The diagram below shows the cost and revenue curves of a monopolist. Costs and MC Revenues AC AW YA Output The objective of the firm changes from profit maximisation to sales revenue maximisation. As a result, the firm’s output would change from A. 09, to 0Q,. B. 00, to 0Q, C. 00, to 0,. D. 09, 10 0Q,. 16. The table below provides details of the costs and benefits of hospital beds. Number of Marginal Private | Marginal External | Marginal Social Cost Hospital beds Benefit (€M) Benefit (EM) (eM) 1000 30 33 14 2000 20 25 18 3000 8 7 25 4000 3 9 31 The socially efficient quantity of hospital beds is ‘A. 1000 beds. B. 2000 beds. C. 3000 beds. D. 4000 beds. 229.040 Turn over-10- M99/330/H(1) 17, The following table relates to an economy in a particular year. £ million GDP at market prices 400 Net property income from abroad | 30 Indirect taxes 20 Subsidies 10 Depreciation 50 What is net national product at factor cost? A. £510 million £370 million B. C. £310 million D. £290 million 18, The diagram below illustrates the aggregate demand and supply curves for an economy, and Yf represents the full employment level of output. Price Level Yf Output The shift of the aggregate demand curve from AD, to AD, will increase I. employment. TI. output, II. prices. A. Tonly B. Tand II only C. Mand Mt only D. I, Wand MI 229.040“ne M99/330/H(1) 19. The accelerator principle relates a change in investment to a change in the rate of growth of A B. Cc D. interest rates. Prices. profits. gross domestic product. 20. The diagram below shows a straight line consumption function. Expenditure Consumption Income It can be deduced from the diagram that pow p> 229-040 I. the marginal propensity to consume will remain constant as income rises. IL. saving will be negative at low levels of income. IIL. the average propensity to consume will fall as income rises. Tonly Land If only Wand II only I, Mand ‘Turn over21. -12- M99/330/H(1) Which of these problems is most likely to improve after a cut in personal income tax rates? ‘A. Demand inflation B. Unemployment C. The budget deficit D. Balance of payments deficit Which of the following statements might represent the view of a monetarist economist? L. In the long run, an increase in government spending, financed: by an increase in the PSBR, will be unsuccessful in reducing unemployment below its natural rate Il. Budgeting for a deficit is an effective way of reducing unemployment. TIT. Inflation is always and everywhere caused by cost push factors. A. Tonly Tand I only C. Tand III only D. 1, Wand I Increased borrowing by the government results in the private sector being able to borrow less. This would be an example of A. diminishing credit worthiness. B. the multiplier effect. C. crowding out D. fiscal drag, The use by the government of a high interest rate policy as a counter inflationary device is based on the assumption that one of its effects will be to increase the A. cost of borrowing for private businesses. B. interest repayments on the national debt. C. level of investment. D. external exchange rate.-13- M99/330/H(1) 25. The diagrams below indicate the production possibility frontiers for two countries, A and B. Country A Country B Missiles Missiles 3000 2000 0 a Tractors 0! F000 Tractors From the diagrams it can be concluded that country A has ‘A. a comparative advantage in both lines of production, and so will not trade. B. a comparative advantage in the production of tractors only. C. an absolute advantage in the production of both products. D. a comparative advantage in the production of missiles. 26. The objectives of the World Trade Organisation include 1. the elimination of existing barriers to trade. I. the establishment of fixed exchange rates. I. the supply of international liquidity. A. Tonly Land II only C. Mand Ill only D. 1, Wand HL 229.040 ‘Tura over-14~ M99/330/H(1) 27. The diagram below shows the market for good Y. Price P P, sw, P, sw 3 T UV Quantity OP is the price of good Y before trade and S is the domestic supply curve. OP, is the price of good Y resulting from free trade and SW represents the world supply curve. The imposition of a tariff on good Y brings about a price of OP,. This tariff will reduce imports of good Y by A. STand VX. B. ST and UV. Cc. SU. D. UX. 28. Which of the following, in principle, represents a difference between a customs union and a free trade area? A customs union A. always has fixed exchange rates among its members. B. uses a single currency for trade within the area. CC. imposes a common external tariff on goods imported from outside the union. D. establishes tariff-free trade between member countries. 229-04029, 31. =~ M99/330/H(1) Which of the following describe expenditure switching as opposed to expenditure reducing? I. A fall in the rate of inflation making domestically produced goods more competitive in comparison to imports II. An increase in the demand for exports resulting from relatively lower export prices THI. Economic recession leading to less demand for imported consumer goods, raw materials and capital goods A. Tonly B. Tand Il only C. Mand II only D. I, Wand WW The table below indicates alternative price elasticities of demand for the imports and exports of country Y. Combination Exports Imports (+m) @® () A 04 0.6 B. 0.5 03 c. 09 M1 D. 1s 15 Following a depreciation of the external exchange rate of country Y, other things being equal, which combination of price elasticities would be most likely to bring about an improvement in the balance of payments on current account? The following table shows the relationship between import and export prices for a country Index of Export Index of Import Prices Prices Year I Year 2 ‘Year 1 Year 2 100 10 100 80 ‘What is the terms of trade index in Year 2? A. 190 B. 1375 Cc. 72.7 D. 1.375 229.040 ‘Turn over~16~ M99/330/H(1) 32, The diagram below shows the determination of the exchange rate of the Yen, Prive of Yen in Dollars] s P Zz Beet Cet uae wx of Yen If the central bank of Japan wished to intervene in the free market to maintain an exchange rate of 0Z it should A. buy WY Yen. B. buy WX Yen. sell WY Yen. D, sell WX Yen 33. Many Less Developed Countries have specialised historically in the production of primary Products for export. A number of problems have arisen from this pattern of specialisation Which one of the following does not apply? A. Primary products have a high income elasticity of demand. B. The world price of primary products is subject to greater fluctuations than that of manufactured products. C. Relying on the export of primary products may lead to a long run deterioration in the terms of trade, D. Technological progress is more rapid in the production of manufactured products than primary products, 229-040