Economics · 2000 · May · Paper 3 · HL · Markscheme

MARKSCHEME May 2000 ECONOMICS Higher Level Paper 3 M00/330/H(3)M INTERNATIONAL BACCALAUREATE BACCALAURÉAT INTERNATIONAL BACHILLERATO INTERNACIONAL 16 pages SECTION A Question 1: Aid/Capital flows Maximum Mark 2 Partial Mark 1(a) (i) For just defining economic growth in terms of increased output over time. For explaining zero growth in terms of no increase in output over a given time period. 2 1 1 (ii) Allow [1 mark] for a basic definition and a second for some expansion, e.g. liberalisation - along the lines of allowing the maximum operation of market forces financial liberalisation - along the lines of opening economies to unrestricted flows of finance capital. 1 1 1 (b) (i) Give [1 mark] to candidates who give one reason e.g. ! cuts by western governments in public spending ! predominance of free market arguments against aid ! establishment of trading blocs and severing of aid programmes. 3 2Give up to [2 marks] for further explanation. 4 1 1 1 1 1 (ii) Give [1 mark] each for candidates who give up to two reasons, e.g. ! debt problems ! provision of basic needs ! inability to attract private capital ! inadequate domestic savings and investment etc. Give up to [1 mark] each for further explanation of either point. 6 1 1 1 1 2 3 4 (c) (i) For just identifying relevant points from the passage allow [1 mark] per point to a maximum of [3 marks] ! the Tobin Tax ! deposits in the central bank ! allowing the free movement of capital ! strengthening of banking systems For further explanation of any point moving beyond the passage For discussion of any other relevant points if the discussion is just confined to either deregulation or re-regulation a maximum of [4 marks] should be awarded - for [6 marks] both need to be addressed. – 6 – M00/330/H(3)M