Carmel Secondary School S4 Economics First Term Test (2023-24) Marking Scheme

5/14)
Total marks: 60
Section A: Multiple-choice Questions (20 marks) g

1
11
C
C
2
12
D
D
3
13
D
A 004
14
B
B
5
15
A
C
6
16
A
A
7
17
D
B
8
18
B
C
9
19 D
B 10
20
C
A

Section B: Questions (40 marks) Marks

1. (a) No, because 1

the quantity of the free tickets is not sufficient to satisfy all people’s wants/more
of them is preferred. 1
-

I
People are willing to pay a cost/price for the free tickets. 1

1. (b) The (full) opportunity cost of waiting in the queue is the sum of monetary cost (if any) and
the non-monetary/time cost (measured by the highest-valued alternative use of time
involved).
Medical doctors have a higher income forgone than full-time housewives. feet 1
1
-

I
so medical doctors have a higher time cost/higher full cost of waiting in the queue. 1

1. (c) Exclusive right to obtain income/exclusive income right 1

Transfer right 1

1. (d) The transfer right is strengthened because 1

ticket holders are allowed to transfer the ownership/use of the tickets to others freely. 1
-
2

2. (a)(i) How to produce 1

because it involves a decision on the production method. fur 1
-

↓
2. (a)(ii) For whom to produce 1
because it involves a decision on the distribution/allocation of goods/services (by
Feb
-

I
adjusting the prices charged). 1

2. (b)(i) Normative statement 1

because it involves value judgement/cannot be tested against facts. 1

2. (b)(ii) Positive statement 1

because it can be tested against facts. 1

2. (c) Example of production activities during a typhoon:

Emergency services are provided by 1
the police/firefighters/rescue workers/hospital personnel. 1
-

3. (a) Highest-valued option forgone 1

3. (b)(i) (No), the opportunity cost decreases because 1

there is a reduction in the money cost of travelling at night to the carnival. 1

3. (b)(ii) No because 1
his preference for early sleep may increase the value of the third priority to a level
higher than that of the second priority.
The cost of going to the carnival may now increase from the value of the second
1 -

3
priority/movie at home, to that of the third priority/sleep early. 1

ECOS4Y23T1ANS 1
3. (c) The anniversary souvenirs are interest to Mr Wong because they are the cost of 1
earlier availability of resources/popcorn machine. 1
The anniversary souvenirs are interest to Mr Lee because they are the compensation 1
for deferred/delayed consumption of resources/popcorn machine. 1

4. (a) X = 2 1
Y= 4 1

4. (b) No 1
a fall in price will lead to a rise in quantity demanded, NOT demand, 1
holding all other factors constant (including the income of consumers). 1

4. (c) Queenie 1
because her quantity demanded remains unchanged/does not rise, when the price falls. 1

4. (d)

Price D

10
8

0 Quantity
2 3

Indicate in the diagram:

-a fall in price from $10 to $8 1
-an increase in quantity demanded from 2 units to 3 units 1
[If the demand curve is not labelled, ZERO mark for the diagram.]
Elaboration:
-quantity demanded rises from 2 units to 3 units 1

END OF ANSWER

ECOS4Y23T1ANS 2