Economics: Demonstrate understanding of how consumer, producer and / or government choices affect society, using market equilibrium (90986)

Transcription

1 Assessment Schedule 2011 NCEA Level 1 Economics (90986) 2011 page 1 of 8 Economics: Demonstrate of how consumer, producer and / or government choices affect society, using (90986) Evidence Statement Question ONE Evidence statement (a) (b) (c) At $100 there is a of seats as there are seats ed but only seats supplied. Airline passengers will bid the price up as they try to get the available seats. As the price rises, quantity ed will fall as some travellers cannot afford to buy more expensive seats. Meanwhile, airlines will put on more flights as flights will now be more profitable. The price will continue to rise until it reaches $130 where quantity ed will equal quantity supplied of seats per day.

2 NCEA Level 1 Economics (90986) 2011 page 2 of 8 N1 N2 A3 A4 M5 M6 E7 E8 with only ONE correct plotting of most points describes a rise in price. with TWO correct plotting of most points describes a rise in price. Shows with correct plotting of all points, and ONE describes a rise in price. Shows breadth of with correct plotting of all points, and TWO describes a rise in price. how is restored. Any THREE uses data to identify a the ie Qd > Qs why price will increase (ie. consumer will bid up price) Increase in P so Qd falls Increase in P so Qs increases. how is restored. Any FOUR of ; uses data to identify a the ie Qd > Qs why price will increase (ie consumer will bid up price) Increase in P so Qd falls Increase in P so Qs increases. how is restored with some reference to data / graph. Only minor errors in use of terms. using data - calculates size of why price will increase (ie consumer will bid up price) applies Law of Supply (ie Pá Qsá ) applies Law of Demand (ie Pá Qdâ ) until clears, Qs= Qd, restored figures not required. how is restored with specific reference to data / graph. Uses appropriate terms. using data calculates size of consumer will bid up obtain available seats applies Law of Supply (ie Pá Qsá ) applies Law of Demand (ie Pá Qdâ ) restored at $130 & Qe = N0/ = No response; no relevant evidence.

3 NCEA Level 1 Economics (90986) 2011 page 3 of 8 Question TWO Evidence statement (a) Market is the of all the firms in the. In this case, it is the number of seats on all airlines supplied at each price. With more airlines providing more flights across the Tasman, the will increase, and the curve will shift to the. (b) With more airlines providing flights, the of seats will rise. This will create a surplus of flights / seats at the existing price. As a result, the airlines will reduce their in order to fill the seats. With cheaper seats available, the quantity of seats ed will rise as grab cheap deals. As a result, the price of trans-tasman seats will fall and more seats will be supplied and ed. Trans-Tasman will be better off as they can now get cheaper seats to Australia with more choice of airlines, such as Jetstar, Air New Zealand or Pacific Blue, and a range of flights times and departure points. Consumers will be able to visit relatives or sightsee in Australia more easily.

4 NCEA Level 1 Economics (90986) 2011 page 4 of 8 N1 N2 A3 A4 M5 M6 E7 E8 with only ONE states that will rise shifts curve to fall in price. with TWO states that will rise shifts curve to fall in price. Shows with THREE states that will rise shifts curve to fall in price. Shows breadth of with FOUR states that will rise shifts curve to fall in price. the change in. shifts S to the, new identified Explains TWO rising due to greater number of flights fall in price due to lower clear Qd (not D) increases benefit to consumer. the change in. shifts S to the, new identified Explains THREE rising due to greater number of flights fall in price due to lower price to clear Qd (not D) increases benefit to consumer. the effect of a change in on and. Mostly in context. Only minor errors in use of terms. links reasons for to shift of to links fall in and reasons for decreasing. Refers to the process using: ed effect of falling OR more seats for the consumer. the effect of a change in on and in context. Uses appropriate terms eg Quantity ed not. links reasons for to shift of to links fall in and reasons for decreasing. Refers to the process using: ed effect of falling more seats for the consumer. N0/ = No response; no relevant evidence.

5 NCEA Level 1 Economics (90986) 2011 page 5 of 8 Question THREE Evidence statement (a) (b) With more visitors coming to New Zealand for games across the country, there is greater for air travel to attend the games. There will be a of seats. With greater for flights, and fans having to be at the games at a certain time, airlines can raise their from Pe to Pe 1. With a higher price, airlines will also put on more flights from Qe to Qe 1 in order to raise more profits. The airlines will increase profits because they are filling more seats and for each seat charging more, so revenue will rise. Profits is the difference between revenue and costs, so with more revenue, profits will rise.

6 NCEA Level 1 Economics (90986) 2011 page 6 of 8 N1 N2 A3 A4 M5 M6 E7 E8 with only ONE curve to the states a rise in the rise in price rise in Q. with TWO curve to the states a rise in the rise in price rise in Q. Shows with ALL of curve to the states a rise in the rise in price rise in Q. Shows breadth of by: shifts D to the, new Partially explains TWO rising due to RWC rise in price is due to leads to profit seats/q/qd/qs/ Qe leads to profits the effect on : shifts D to the, new Explains THREE rising due to the RWC rise in price is due to bidding up leads to profit seats/q/qd/qs/ Qe leads to profits the effect on : shifts D to the, labels new Explains FOUR rising due to the RWC rise in price is due to bidding up leads to profit seats/q/qd/qs/ Qe leads to profits the effect of the RWC on the airline industry. Mostly in context. Only minor errors in use of terms. links reasons for to shift of to links rise in and bidding up Refers to the process using: increase quantity supplied effect of rising OR more seats on the airlines. the effect of the RWC on the airline industry in context. Uses appropriate terms eg Quantity supplied not. links reasons for to shift of to links rise in and bidding up Refers to the process using increase quantity supplied effect of rising, more seats on the airlines. N0/ = No response; no relevant evidence.

7 NCEA Level 1 Economics (90986) 2011 page 7 of 8 Question Evidence statement FOUR (a) (b) Quantity buy Before: ; After: Price pay Before: $200; After: $225 Price Before: $200; After: $175 Government: $ (c) The price paid by will rise as airlines pass some of the tax onto the consumer ($25). The price will fall as tax is paid over to the government (and not all can be passed onto the consumer ie $25). The government will gain tax of $50 per seat and now that seats are sold per month they will get revenue of $ per month. This is money that can be used to help reduce the environmental cost created by planes or research into alternative fuels or used to improve airports or for other government spending areas.

8 NCEA Level 1 Economics (90986) 2011 page 8 of 8 N1 N2 A3 A4 M5 M6 E7 E8 with only ONE curve to the left higher price lower quantity. with TWO curve to the left higher price lower quantity. Shows with ALL curve to the left higher price lower quantity. Shows breadth of with ALL curve to the left higher price lower quantity TWO revenue (Allow for carrythrough errors). effect of sales tax. shifts S to the left correctly Explains by correctly stating THREE revenue. effect of sales tax. shifts S to the left correctly Explains by correctly stating FOUR revenue. the effect of sales tax by explaining THREE revenue the benefit to society of the tax revenue Figures correct but not required to be repeated in the explanation; minor error in terms or specific terminology omitted. the effect of sales tax by explaining THREE revenue the benefit to society of the tax revenue Figures and terms are correct and at least two figures cited in paragraph. N0/ = No response; no relevant evidence. Judgement Statement Not Achieved Achievement Achievement with Merit Achievement with Excellence Score range