9708_s03_ms_1+2+3+4.pdfVIP

June 2003 GCE ADVANCED SUBSIDIARY LEVEL AND ADVANCED LEVEL MARK SCHEME MAXIMUM MARK: 30 SYLLABUS/COMPONENT: 9708/01 ECONOMICS Paper 1 (Multiple Choice (Core)) Page 1 Mark Scheme Syllabus Paper A/AS LEVEL EXAMINATIONS – JUNE 2003 9708 01 ? University of Cambridge Local Examinations Syndicate 2003 Question Number Key Question Number Key 1 A 16 D 2 C 17 B 3 B 18 B 4 A 19 B 5 D 20 D 6 C 21 B 7 C 22 C 8 B 23 A 9 C 24 B 10 C 25 B 11 B 26 C 12 B 27 C 13 C 28 A 14 A 29 D 15 B 30 C June 2003 GCE ADVANCED SUBSIDIARY LEVEL AND ADVANCED LEVEL MARK SCHEME MAXIMUM MARK: 40 SYLLABUS/COMPONENT: 9708/02 ECONOMICS Paper 2 (Data Response and Essay (Core)) Page 1 Mark Scheme Syllabus Paper A/AS LEVEL EXAMINATIONS – JUNE 2003 9708 2 ? University of Cambridge Local Examinations Syndicate 2003 1 (a) (i) What change was forecast for the current balance between 2000 and 2001? Decrease/worsen (1), by RM 9.1b/$US2.4b/29% (1), lower surplus (2), - two aspects [2] (ii) How did the visible items, shown in Table 2, contribute to this change? All imports rose (1), less growth of exports (1), supporting data (1), fall in 2 exports (1), two aspects [2] (b) How might economic theory explain the composition of visible exports? Comparative advantage (1), reference to factor endowment linked to products (1), Industrialisation (1), reference to composition of exports (1) [2] (c) Should the Malaysian government be concerned about the figures for visible imports? Yes – rising faster than exports, dependency issue, nature of goods No – covered by exports, reflect comparative advantage, further output Awareness of two sides for (4), 1 side (3) max [4] (d) Identify two other pieces of data needed to calculate the overall balance of payments. Capital account (1), financial account (1), errors and omissions/balancing item (1), individual components, e.g. investment flows (1), transfers (1) [2] (e) What happened to the ringgit/dollar exchange rate between 2000 and 2001? Remained unchanged (1) at RM 3.8 per $ (