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p A: data response
1 (a) EOS定义(1) Technical or purchasing (1) 解释 (1)
1 (b)MES定义(1)
A: LRAC一直下降，不知道MES (1)
B: LRAC在4m和10m都是80，MES is achieved (output未知) (1)
或者需要更多的output来确定LRAC是否还能下降所以MES is not achieved(1)
1 (c) Short-term impact on ICE industry: demand for labour is a derived demand for workers下降, wage rate下降, employment下降。记得画图.
Impact depends on PED.
Short-term impact on EV industry: 如果labour是mobile的, supply of labour增加, wage下降,employment增加。
Long-term impact on other industries:德国南部大部分的工作都由ICE提供。如果大量ICE的人失业, 德国南部的real GDP下降, AD下降, 所有行业的demand for labour下降, wage rate下降, employment下降。
1 (d) Saudi Arabia: export revenue下降,negative multiplier effect, AD下降。accelerator theory, investment再下降, AD下降,unemployment上升
Current account deficit增加,external debt增加.
Singapore:tax revenue下降, debt/GDP ratio增加.
Government spending上升(例如充电桩), governmentspending on infrastructure/R&D下降, future growth rate下降.
p B: Micro essay
2.Market failure exists in all economies.Evaluate, with the aid of a diagram(s), the meaning of market failure and two policies a government may use to correct market failure. [20]
Meaning ofallocative efficiency, externality, market failure.
Explain one type of market failure(externality ormarket power), use diagram to show deadweight loss.
PolicyA to correct market failure + ineffectiveness.
PolicyB to correct market failure + ineffectiveness.
3. Evaluate, with the aid of a diagram(s), whether excess proft (supernormal profit) is always necessary for the continued existence of firms in perfect competition and monopoly. [20]
Meaning ofsupernormal profit (revenue and cost should be explained)
Meaning ofperfect competition, SR and LR equilibrium
LR: all firms earn normal profits, excess profit not necessary
Meaning of monopoly, equilibrium
Private monopoly: excess profit necessary
Public monopoly: not necessary
- crosssubsidisation
- natural monopolies such as electricity and gas may operate with consideration for welfare.
p C: Macro essay
4.In 2022, many countries experienced a high rate of inflation caused by disruptions to the supply of goods and services arising from the Covid-19 pandemic and the confict between Russia and Ukraine. In one country, the government cut taxes and the central bank raised interest rates.
Evaluate the likely impact of these policies on that government's ability to control inflation. [20]
Meaning of inflation, meaning of demand-pull inflation andcost-push inflation, reasons of inflation in the context (increase in shipping costs and oil price)
Negative consequences of cost-push inflation.
A rise in interest rates can decrease consumption and investment, but this may not correct inflation if it is not demand-pull inflation/AD may not decrease/conflicts of objectives.
A rise in interest rates could increase the exchange rate and reduce import prices, but this may not offset the rise in oil prices/exchange rate may not increase if other countries also increase interestrate.
A cut in indirect tax could reduce cost of production and shifts SRAS;a cut in direct tax could increase investment and shifts LRAS.
A cut in direct tax may increase AD and lead to demand-pull inflation.
5.Evaluate the likely impact of globalisation on a low-income country's standard of living.[20]
Meaning of globalisation (including FDI and free trade)
Meaning of low-income country, low-income country has low living standard.
FDI and free trade increasesreal GDP.
Higher income leads to higherliving standards.
Higher tax revenue leads to higher living standards.
FDI may not increase income.
Higher income does not improve living standards.
FDI may decrease living standards.
Problemsof specialisation on primary goods.
这张卷子难度基本等同于印度卷，盲猜分数线和印度卷差不多。
印度卷的分数线会在5月23日公布。
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