Economics · 2006 · November · Paper 2 · SL · Question paper
EconomicsQuestion paper2006SLNovember
Full PDFs are free with an email account.
Resource overview
This question paper is listed under Economics in the 2006 examination archive. Its catalogue level is SL. The catalogue session is November. The information below helps you identify the document before opening the complete PDF. Subject, year and session labels come from the archive catalogue; the original cover remains the reference if a label differs. A file is not automatically suitable for your current syllabus simply because its subject name matches.
For revision, choose a manageable section and attempt it before consulting the matching markscheme. Keep a short error log separating knowledge gaps, method choices and unclear explanation. Compare the paper number, level and examination zone before pairing files. Older papers can be useful practice, but their topic coverage and format may differ from the course you are taking now.
The public preview contains file information and, where reliable text extraction is available, a limited opening excerpt. It is not a summary of unseen questions or a replacement for the original document. Create a free email account to read or download the complete file. No payment is required to unlock this archive resource.
This original usage overview is based on the archive metadata. It does not claim to summarise the complete file.
Opening excerpt
Opening text only, limited to at most 20% of pages, two page-equivalents and 2,200 characters. Clearly labelled personal identifiers have been removed. Text extraction may omit equations, tables or figures.
IB DIPLOMA PROGRAMME
PROGRAMME DU DIPLÔME DU BI
PROGRAMA DEL DIPLOMA DEL BI
N06/3/ECONO/SP2/ENG/TZ0/XX
ECONOMICS
STANDARD lEvEl
PAPER 2
Wednesday 8 November 2006 (morning)
INSTRUCTIONS TO CANDIDATES
Do not open this examination paper until instructed to do so.
Answer three questions.
Use fully labelled diagrams and references to the text / data where appropriate.
2 hours
8806-5105 11 pages
88065105
N06/3/ECONO/SP2/ENG/TZ0/XX
8806-5105
– 2 –
1. Study the extract below and answer the questions that follow.
Tax rise reduces smoking and boosts revenue
The Center for Disease Control estimates that health costs caused by smoking across
America total $7.18 per pack sold in the United States. The University of Wyoming’s Survey
and Analysis Center reports that in 1998, $106 million was spent in Wyoming on the
negative externalities
directly related to smoking.
A tax increase approved in 2003 has reduced the quantity of cigarettes demanded and
increased state revenue, and experts believe another increase would do the same. The indirect
tax increase raised revenue from around $500 000 per month to $1.5 million per month.
Tax revenue was higher despite the fact that the number of packs sold fell 17.4 % over the year
following the increase.
Marc Homer, assistant research scientist with the center’s Tobacco Prevention and
Control Evaluation team, suggests that another tax increase would further raise revenue while
further slowing cigarette consumption. “Raising taxes is a no-cost measure that reduces the
health burden,” Homer said. “In fact, it is a bonus for the state because it has the added benefit
of increasing government tax revenue.”
Homer pointed out that taxes are still higher in surrounding states. “Currently the average tax
per pack of cigarettes, for Wyoming and the six states on its borders, is 80 cents,” he said.
In Montana, a recent increase put the indirect tax much higher at $1.70 per pack. “States with
cigarette taxes higher than Wyoming’s, such as California (87 cents) and New York ($1.50)
have successfully reduced consumption while increasing revenue,” the report says.
The price of cigarettes in Wyoming has risen
File information
Subject
Economics
Document type
Question paper
Year
2006
Session
November
Level
SL
Paper
2
Examination zone
Not labelled in the archive
Language
Not labelled in the archive
File size
307 KB
Pages
11
FREE FULL RESOURCE
Read the complete document.
Register or sign in with your email to unlock the full PDF. No payment, password or membership is needed.