Assessment Schedule 2013 Economics: Demonstrate understanding of producer choices using supply (90985)

Transcription

1 NCEA Level 1 Economics (90985) 2013 page 1 of 6 Assessment Schedule 2013 Economics: Demonstrate of producer choices using (90985) Evidence Statement Question ONE (a) Graph : Title (Stanley, monthly, street ), units ($, pairs), even scales, axes labelled (Price or P, Quantity or Q), points and coordinates joined by lines curve labelled S. Evidence (b) Movement along the : changes indicated by (dotted) lines P 1, P 2, Q 1, Q 2 labels arrows. (c) Law of Supply: As the price of Stanley s street increases from $80 to $130 per pair, the quantity of street supplied by Stanley rises from pairs to pairs per month. Ceteris paribus. Explanation of the reason for law of : As the price of street rises, selling street becomes more profitable for Stanley since the revenue is and is better able to the / difference between revenue and is greater. Therefore, Stanley will want to increase the quantity (of street ) supplied in order to maximise profits. Explanation of the the price of street on a related : A related is one that can be made similar resources. School and street are related s because similar resources/ leather, rubber and shoe workers are used. With street being relatively more profitable than school, Stanley will switch his resources away from school towards street. This will decrease Stanley s school / decrease the quantity Stanley will at each price.

2 NCEA Level 1 Economics (90985) 2013 Page 2 of 6 N1 N2 A3 A4 M5 M6 E7 E8 ONE of: FIVE shows the law of or school would TWO of: FIVE the law of or school would Shows THREE of: FIVE the law of or school would Shows breadth of FOUR of: the law of or school would mostly using data and context. the quantity supplied of street the law of and idea of more school, the related, the idea of it being profitable. mostly using data and context. the quantity supplied of street the law of and idea of more school, the related the idea of it being profitable. FIVE in context data and mostly using terminology. the idea of linking higher to or link to diverting resources school (the related ) the idea of it being relatively profitable. in context data, and using terminology. Including ceteris paribus the idea of linking higher to and that Stanley will divert resources. fully explains school (the related ) the idea of it being relatively profitable N0/ = No response; no relevant evidence.

3 NCEA Level 1 Economics (90985) 2013 Page 3 of 6 Question Evidence TWO (a) The is shifted to the left. (b) Explaining the the factor: Examples of how faulty wiring and power failure can affect operations may include Stanley is unable to use all areas of his factory / must leave some machinery idle, which means it will take longer to produce the, making them profitable to (Time Cost factor). Productivity of labour falls because machinery is no longer usable. Repairs will have to be undertaken, increasing. Stanley will have to hire an electrician to rewire the factory. This will add to Stanley s of. (Cost factor) This will incur or, which reduces since the difference between revenue and will now be smaller / able to. Consequently, his will fall as shown by a shift of the to the left from S to S 1, which indicates Stanley supplies fewer pairs of at each and every price. Flow-on effects: Examples include: Stanley may have to lay off some workers because there are fewer machines able to be used and fewer being made. Expansion plans may have to be put on hold until the factory is up to standard. The factory may have to be shut down if the business fails to re from the rewiring in the long term. Stanley may have to look for temporary premises if he is no longer able to operate from that site due to electrical issues. Stanley may have to advertise to customers that he is still in business (damage control). Stanley might have to concentrate on the type of that are affected by some parts of the factory being unusable.

4 NCEA Level 1 Economics (90985) 2013 Page 4 of 6 N1 N2 A3 A4 M5 M6 E7 E8 ONE of: rising or TWO of: rising or Shows THREE of: rising or Shows breadth of ALL of: rising or the the factor. shift ly uses an example to explain a factor, linked to 1 of: lower to explain a fall in a flow-on effect fall in. the the factor. shift ly And ALL of uses an example to explain a factor, linked to lower to explain fall in a flow-on effect fall in the the factor in context of Stanley s mostly using Stanley's falling of a clear example of factor linked to ONE flow-on effect clearly factor affecting. the the factor in context of Stanley s using Stanley's falling of a clear factor linked to ONE flow-on effect clearly factor affecting the to support the explanation. N0/ = No response; no relevant evidence.

5 NCEA Level 1 Economics (90985) 2013 Page 5 of 6 Question THREE (a) Evidence Shows a shift to the right of the of and labelled S 1. (b) Effect of lower wages on Stanley s : Wages are a. Lower wages mean of. This will make shoe more profitable as the difference between revenue and will be higher, thus Stanley will be encouraged to increase his. This is shown by the shift of the curve to the right from S to S 1, which indicates Stanley supplies more pairs of at each and every price. Effect of : Stanley s Shoes will decrease because the workers are experienced in making so will be slower / efficient / work at a lower rate take the same number of new workers longer to make the same number of compared to the older, more experienced staff. This will lead to a or the initial may be offset by a fall in Stanley s Shoes will increase as the new workers will be eager to prove themselves worthy of the job and will work extra hard, rate / faster / more efficient / take the same number of new workers time to make the same number of compared to the older, more experienced staff. This will result in their producing more in the same amount of time as the old staff. This would lead to a (further) the.

6 NCEA Level 1 Economics (90985) 2013 Page 6 of 6 N1 N2 A3 A4 M5 M6 E7 E8 ONE of:. TWO of:. Shows THREE of:. Shows breadth of FOUR of:. the concept of of. shift ly the to a fall in the (wages) ONE of: to explain the rise in the an. the concept of of. shift ly ALL of the to a fall in the (wages) to explain the rise in the an the concepts of of in context and mostly using links the lower wages to, linked to more an. the concept of of in context using clearly links the lower wages to, link to more a flow-on effect of ie output per worker the to support the explanation. N0/ = No response; no relevant evidence. Judgement Statement Not Achieved Achievement Achievement Merit Achievement Excellence Score range