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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS GCE Advanced Subsidiary and Advanced Plane MARK SCHEME for the November 2005 investigation monograph 9708 ECONOMICS 9708/04 Monograph 4, apex raw indication 70 This indication plea is published as an aid to teachers and students, to declare the requirements of the scrutiny. It pretences the plea on which Examiners were initially instructed to accord indications. It does not declare the details of the discourses that took settle at an Examiners’ parley anteriorly indicationing began. Any true diversifys to the indication plea that arose from these discourses obtain be recitative in the published Report on the Examination. All Examiners are instructed that material rectify exculpations and unlocked-for wayes in canvassers’ scripts must be loving indications that justly image the related familiarity and skills teachd. Indication pleas must be interpret in conjunction delay the investigation monographs and the Report on the Examination. The reserve indications in these components needed for diversified grades were previously published delay these indication pleas, but are now instead comprised in the Report on the Scrutiny for this gathering. • CIE obtain not invade into dissuccession or letter in concatenation delay these indication pleas. CIE is publishing the indication pleas for the November 2005 investigation monographs for most IGCSE and GCE Advanced Plane and Advanced Subsidiary Plane syllabuses and some Ordinary Plane syllabuses. Page 1 Indication Plea GCE AS/A LEVEL – NOVEMBER 2005 Syllabus 9708 Monograph 4 Section A 1 (a) What sign is tless in the expression that the UK ductile phone companies work in an mediocre indicationet mould? Barely foul-mouthed companies, can fix appraisement, possess emanation opposediation in the handsets, no plentiful familiarity. (b) Teach the proposition ‘one fruit obtain be that cross-subsidisation obtain crouch and the appraisement of a new handset obtain go up meditateably. Description of purport of subsidising one emanation or use by the avail on another which itself may be balancepriced. The opposition of the contribution obtain fruit in the appraisement of the subsidised emanation increasing if avail planes are to be maintained. Often the subsidised emanation moulds a privation but is done owing it is supplementary to other avail making emanations or uses. (c) The expression says the falsification of the Tall Court obtain consume the companies ? 1. 5 billion to ? 2 billion. Teach how the phone companies power counteract in adjust to conceal their avail planes. Could try to refer labour consumes, tool some redundancies, could bung elimination and fruit, could unconcealedly try to refer consumes or could try to growth produce by promoting emanations through advertising. (d) Teach delay the aid of a diagram how the nature of consequence score would seek consumer redundancy. Consequence score are settled balancehead the indicationet plane. Diagram should pretence a appraisement balancehead indicationet manifesting which obtain fruit in abatement in consumer redundancy. 1 indication for D/S diagram rectifyly labelled; 1 for pretenceing the referd area of consumer redundancy; 1 for description. e) Does the counsel control you to acquiesce delay the spokesperson when he said that consumers should not necessarily deem the falsification as a cheerful-natured-natured-natured-natured man? In consumers’ concern: they would hinder ? 700 but balance contiguous three years, appraisement abatement would be on all calls. Against consumers’ concern: consume of telephone handset would rise; tless is a solicitude-alarm of growthd calls for extract messages; possibility of phone order finding some other way to conceal avail tall. [6] [4] [4] [3] [4] © University of Cambridge Internotorious Examinations 2005 Page 2 Indication Plea GCE AS/A LEVEL – NOVEMBER 2005 Syllabus 9708 Monograph 4 General teachs for Section B The essay investigations heave a apex indication of 25. Try not to 'bunch' indications, but use the unimpaired indication dispose. If tless is any vacillate in your purpose, produce the favor of vacillate to the canvasser. The discord in grades should be assessed on the power of the canvasser to teach the diversified concretes of the scrutiny listed in the syllabus and not purely on the power to itemise aid basis from the succeeding of the syllabus. Marks should be accorded for the power to teach that aim (b) of the syllabus has been consummated as polite as aim (a) - which refers to succeeding familiarity. It is the concrete of the scrutiny, as listed in the syllabus, to assess twain these donation. An balanceall manage for indications for specific investigations is loving below; these are from a sum of 25. They may be applied proportionally of succession to bargain-outs of investigations wless the sum is hither than 25: Indication 1 – 9 (Linked to plane one in specific investigation notes). 1-5 wless the exculpation is for-the-most-deal-out irrelated and barely contains a few powerful points made incidentally in an irrelated tenor. Tless obtain so be true omissions of resolution. less the exculpation pretences some familiarity but does not declare that the purport of the investigation has been justly grasped. Basic errors of plea or an uneven fruit of resolution may be obvious. 6–9 Indication 10 – 13 (Linked to plane two in specific investigation notes). 10 –11 wless tless is sign of an power to identify basis or some power at graphs and/or a just power to devote known laws to new situations. Tless should be an complimentary although immanent description of the basis relating to the investigation simultaneously delay an description of the plea, and sign of some bility to opposediate and shape ultimate judgements. Do not forebode a manifest argumentative gift. Tless obtain not be meditatetelling sign of the power to recognise unstated assumptions, nor to investigate the implications of a scheme, nor of the power to organise ideas into a new concord. 12 – 13 wless the exculpation has a over immaculate concatenation to the investigation but wless the plea is inaccurately teached. © University of Cambridge Internotorious Examinations 2005 Page 3 Indication Plea GCE AS/A LEVEL – NOVEMBER 2005 Syllabus 9708 Monograph 4 14 - 17 (Linked to plane 3 in specific investigation notes). 4 –15 wless tless is a cheerful-natured-natured-natured-natured familiarity of the basis and plea of the investigation, manifest sign of the power to use the basis and plea delay complimentary allusion to the investigation that may possess presented the canvasser delay a odd collision. Tless should so be sign, wless after a whilehold, of the power to investigate the implications of the investigation and an attack to separate betwixt basis and appraise judgements. Manifest propositions, attended by examineed arguments should be loving and tless should be some attack at a falsification to the investigation. Tless should be a examineed mould to the unimpaired exculpation. Do not forebode too sundry extra Illustrative points which are not palpably referred to in the investigation, do not forebode too meditatetelling delicate teach on unstated assumptions 16 - 17 for an exculpation pretenceing a polite examineed conception of the investigation's requirements and of the related plea: the resolution should be gauge though the exemplification and fruit may not be very plentiful. 18 - 25 (Linked to plane 4 in specific investigation notes). 18 –20 wless tless is a immaculate familiarity of the basis and plea delay an perceiveed power to define, teach or analyse this in a explicit, argumentative, examineed behavior. Tless should be an power to inquiry some of the assumptions in the investigation and manifest sign of an power to separate betwixt certainty and appraise judgements and to inhale some falsifications on the subject nature examineed. Conclusions should be shapeed and patent transparent delayin a gauge mouldd exculpation so that the unimpaired is polite presented. New exemplifications and meet examples should be introduced as aid sign of an power to recognise the principles of the investigation and their collision to related vulgar situations. 1 - 25 for an exculpation which, loving the season bustle, could not be improved significantly: it obtain possess manifest resolution, plentiful exemplification and a cheerful-natured-natured-natured-natured attack at meditateed evaluation. Be real in your indicationing, according indications for what is tless delayout nature too meditatetelling influenced by omissions. Marks should not be deleted for inaccuracies. Corresponding indications for sub-sections. Sum Indication 10 Sum Indication 12 Sum Indication 13 Sum Indication 15 1 1-3 1-4 1-4+ 1-5 2 4-5 5-6 5-6+ 6-8 3 6-7 7-8 7-8+ 9-11 4 8-10 9-12 9-13 12-15 © University of Cambridge Internotorious Examinations 2005 Page 4 Mark Plea GCE AS/A LEVEL – NOVEMBER 2005 Syllabus 9708 Monograph 4 Section B 2 (a) Teach what is meant by prolific material allocation in a liberal indicationet. L4 L3 L2 L1 (b) For a gauge description delay manifest conception of the principles concerned in the resolution. [8 – 10] For a suittelling description but delay niggardly fruit of the resolution. [6 – 7] For a rectify description of a liberal indicationet but immanent description of allocative conciliateingness. [4 – 5] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution obtain be true. 1 – 3] [10] Would you acquiesce that in some proviso it is best to sanction the falsification such as that of the French empire and forfeit the quest for economic conciliateingness through the liberal indicationet? [15] Dissuccession of the examine for indicationet insufficiency. Monopolies, cheerfulness cheerful-natured-natured-natureds, notorious cheerful-natured-natured-natureds. Inducement of whether this power devote in the circumstance of the abundant engineering order. L4 L3 L2 L1 For a examineed dissuccession of purposes of indicationet insufficiency and manifestly mouldd exculpation. [12 – 15]. For a just description of indicationet insufficiency but noncommunication of fruit and examineed falsification. 9 – 11] For a niggardly but sanctiontelling attack to meditate some indicationet insufficiencys. [6 – 8] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution obtain be true. [1 – 5] 3 (a) Teach how occupation confederations can be incorporated into the economic resolution of wage vill. [12] Candidates are asked to teach on occupation confederations so the economic plea of salary that they should use is that for an mediocre indicationet. This plea should be teached using ultimate produce emanationivity. Trade confederations can possess an consequence on the minister flexion which is now no longer barely robust by indicationet forces. Wless the objective wage obtain be robust depends upon the not-absolute strengths of the master and the occupation confederation. L4 L3 L2 L1 For a gauge dissuccession delay cheerful-natured-natured-natured-natured description of the resolution and a manifest conception of the principles concerned. [9 – 12] [7 – 8 D and S way] For a suittelling teach but delay niggardly deduction of the resolution. [7 – 8] [5-6 D and S way] For a rectify description of bargain-out of the resolution. Candidates power teach either the empire or the confederations. 5 – 6] [3+ – 4 D and S way] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution obtain be true. [1 – 4] [1 –3 D and S way] © University of Cambridge Internotorious Examinations 2005 Page 5 Indication Plea GCE AS/A LEVEL – NOVEMBER 2005 Syllabus 9708 Monograph 4 (b) Examine the feasible consequences that occupation confederations power possess on the dispensation of a dominion. [13] Occupation confederations could seek the minister of labour and working practices. They could purpose emanationion to diminish delay resultant downward consequences on proceeds, spending and notorious proceeds. Candidates could teach this using the multiplier concept. Confederation could, ultimately, through business neutralize alienation of emanationion, or could warner the toolation of security procedures which power mingle extra spending by the master. This power polite possess an upward consequence on notorious proceeds. L4 L3 L2 L1 For a examineed and manifest description delay complimentary fruit of plea contrasting feasible developments. [9 – 13] For a manifest but immanent description which concentrates on diversify of proceeds in one command barely. 7 – 8] For a niggardly attack to meditate the plea and delay a main force on the picturesque elements. [5 – 6] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution are true. [1 – 4] 4 (a) Delay the aid of diagrams separate betwixt ordinary avail and abordinary avail. [10] Diagrams to pretence ordinary and abordinary avail delay cognate description of the flexions used in the diagram. Candidates can separate betwixt plentiful and mediocre indicationets. L4 L3 L2 L1 For a gauge description, cheerful-natured-natured-natured-natured diagrams rectifyly labelled, delay manifest conception of the principles concerned in the resolution. [8 – 10] For a suittelling description but delay niggardly fruit of the resolution. Diagrams manifest but not plentifuly labelled. [6 – 7] For a rectify description of provisions but some insufficient diagrams. [4 – 5] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution obtain be true. [1 – 3] (b) Examine whether sturdys frequently nonproduction to maximise avail and are telling to do so in the way suggested by economic plea. 15] Dissuccession of the plea of avail maximisation. Candidates should meditate not barely whether it is feasible to count ultimate produce and ultimate consume to consummate avail maximisation but so whether the sturdy power possess material donation. Sales maximisation, behavioural, managerial, satisficing, indicationet distribute donation power be noticeed. L4 L3 L2 L1 For a examineed dissuccession and manifestly mouldd exculpation. [12 – 15] For a just dissuccession but immanent exculpation noticeing either barely one bargain-out of the investigation or twain bargain-outs but barely niggardly notice of material donation. 9 – 11] For a niggardly but sanctiontelling attack to meditate the investigation delay very niggardly fruit of either bargain-out. [6 – 8] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution obtain be true. [1 – 5] © University of Cambridge Internotorious Examinations 2005 Page 6 Indication Plea GCE AS/A LEVEL – NOVEMBER 2005 Syllabus 9708 Monograph 4 5 How far do you acquiesce that low concern rates and low inflation are the most weighty donation of empire system in maximising economic success? 25] Dissuccession of the unconcealed macro donation of empire system delay a teach on whether the two noticeed should be deemed as the most critical. The consequence of low concern rates and low inflation and feasible merges betwixt them can be patent transparent. Reasons should be loving for either choosing or not choosing these donation as the most weighty. L4 L3 L2 L1 For a immaculate description of the donation, a manifest resolution of the merge betwixt them, a dissuccession of the feasible development of a choosing either those donation or materials delay a examineed falsification. 18 – 25] For a suittelling description of the donation but wless tless is barely niggardly attack to meditate the meaning of the avail of the donation. Tless obtain be some dissuccession but the evaluation obtain not be plentifuly patent transparent or big. [14 – 17] For an complimentary though immanent description delay some attack at resolution but barely niggardly evaluation. [10 – 13] For an exculpation which pretences some familiarity but does not declare that the investigation has been plentifuly grasped. The exculpation obtain possess some rectify basis but conceive irrelevancies. Errors of plea or omissions of resolution obtain be true. 1 – 9] 6 Delay the laudation of the Malaysian empire, the Swedish order IKEA, the world’s abundantst retailer of settlement furnishings, has invested $106 pet in Malaysia in the spent three years. It plans to public another abundant accumulation in the dominion, employing 450 commonalty delay forebodeed sales of almost $50 pet in the primary year. (Herald Tribune Aug 15 03 p 12) (a) Use the multiplier resolution to teach what consequence this boarding power possess on the Malaysian notorious proceeds. [10] Dissuccession of the consequence of increasing boarding in provisions of business, proceeds, spending, shy. Multiplier resolution. Usually this investigation is asked delay allusion to empire spending and boarding but this is a abundant boarding and it so obtain possess multiplier consequences. L4 L3 L2 L1 For a gauge description of the resolution and a manifest conception of the principles concerned. [8 – 10] For a suittelling teach but delay niggardly deduction of the resolution. [6 – 7] For a rectify description of bargain-out of the resolution. Candidates power teach how boarding power growth proceeds but power not bargain delay aid growths in as they do not examine what leakages betide at each ‘round’. 4 – 5] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution obtain be true. [1 – 3] © University of Cambridge Internotorious Examinations 2005 Page 7 Indication Plea GCE AS/A LEVEL – NOVEMBER 2005 Syllabus 9708 Monograph 4 (b) Examine whether the activities of multi-notorious companies are frequently wholesome. Candidates should examine the consequences of abundant companies. They could meditate whether a abundant order is wholesome for the distributeholders, the workforce and the consumer. These groups may be in opposed countries. They should teach on the consequence in assemblage dominion wless salary/incomes/business power growth and on the feasible favors for directors (and distributeholders) who may be in the settlement dominion. The multi-notorious power possess separated to work in the assemblage dominion owing of referd consumes or cheaper inputs so a teach on the feasible favors of relatively service would be related. L4 L3 L2 L1 For a gauge dissuccession delay cheerful-natured-natured-natured-natured description of the resolution and a manifest conception of the principles concerned. Reasoned evaluative teachs should be loving. 12 – 15] For a suittelling teach but delay barely niggardly evaluation of the consequences. [9 – 11] For a rectify dissuccession of the resolution but delay barely very small, or no evaluation. [6 – 8] For an exculpation which has some basic rectify basis but conceives irrelevancies. Errors of plea or omissions of resolution obtain be true. [1 – 5] [15] 7 ‘Tless are so sundry difficulties in measuring maintenance standards that we can never be confident that commonalty in one dominion are emend off than those in another dominion. ’ Teach upon this proposition. [25] Candidates should meditate each bargain-out of the proposition. They should examine whether tless are sundry difficulties in measuring maintenance standards and produce examines for their falsification on this bargain-out of the investigation. They should then meditate whether it is feasible to collate one dominion delay another and examine what use notorious proceeds statistics power be. They should shape an balanceall falsification. L4 L3 L2 L1 For a immaculate description of the difficulties of measuring maintenance standards, and a manifest falsification to the assumption followed by a meditateation of the advantage of using the statistics to mould comparisons. [18 – 25] For a suittelling description of the difficulties but delay a niggardly falsification. Tless obtain be some meditateation of comparison betwixt countries but this obtain not be plentifuly patent transparent or big. [14 – 17] For an complimentary though immanent description delay some attack at resolution but barely niggardly evaluation. The falsification obtain be flimsy. [10 – 13] For an exculpation which pretences some familiarity but does not declare that the investigation has been plentifuly grasped. The exculpation obtain possess some rectify basis but conceive irrelevancies. Errors of plea or omissions of resolution obtain be true. [1 – 9] © University of Cambridge Internotorious Examinations 2005