Markscheme

Markscheme

This markscheme provides students with guidance for what can be included in their answers and is not a model answer.

a. (i) Define the term total revenue. (Text A, paragraph 2) [2]

Total revenue is the income a business receives from selling its good or service over a given time period. It is calculated by: price x quantity = total revenue.

(ii) Define the term aggregate supply. (Text A, paragraph 1) [2]

Aggregate supply is the total output of all producers in an economy at a given point in time and at a given price level.

b. The number unemployed in Morocco in 2019 was 1,482,000.

(i) Using the data in table 1 calculate the size of the labour force.  [2]

1,482,000 / 0.082 = 18,073,170

(ii) Using the information in table 1, describe Morocco’s economic performance in terms of inflation over the 10 year period. [3]

Morocco’s average inflation rate of 1.6% is below the average inflation rate of 4.3% of all Arab nations. This means Morocco’s performance in terms of achieving price stability over the period is a strong one relative to other nations in its region.

c. Using an AD/AS diagram, explain the impact a fall in consumer confidence in Morocco might have had on its real GDP. (Text A, paragraph 2) [4]

When consumer confidence fell in Morocco it lead to a fall in in consumption expenditure which is a component of AD. As AD falls in the diagram from AD to AD1 there is a fall in real GDP from Y to Y1.

d. Using a demand and supply diagram, explain the impact a fall in the number of tourists visiting Morocco due to the pandemic would have on the total revenue of the country's hotel market. (Text A, paragraph 3) [4]

The diagram shows how a falling number of tourists in Morocco leads to fall in demand for hotels in Morocco. The demand for hotels falls from D to D1 and the fall in revenue is shown by the yellow shaded area in the diagram.

e. Explain how Morocco’s HDI value of 0.667 is calculated. [4] (Text B, paragraph 4)

A country’s HDI is calculated using the HDI index number for economic development that includes: real GNI per capita, life expectancy at birth, along with mean years of schooling and expected years of schooling. The combined index value of these variables gives Morocco’s HDI value of 0.667.

f. Using a market failure diagram, explain the effect the increase in the use of solar power in Morocco would have on market failure associated with using fossil fuels to generate electricity. [4] (Text C, paragraph 5)

The increased use of solar power in Morocco will reduce the demand for energy generated by fossil fuels. This leads to a fall in the demand for fossil fuels from D = MPB = MSB to D = MPB = MSB1 in the diagram which reduces output towards the socially efficient level and corrects the market failure.

g. Using information from the text/data and your knowledge of economics, discuss Morocco’s progress in achieving economic development. [15]

Responses should include:

• Definition of economic development
• Explanation that Morocco’s economic development can be seen through its status as a ‘middle development country with an HDI of 0.667’. This is above the average of 0.645 of other countries in this group. On the basis of GNI per capita, education and life expectancy (health) Morocco is making relatively good development progress.
• Explanation that Morocco development based on the economic indicators of inflation (1.6%), unemployment (8.2%) and economic growth (3.1%) are above average for all Arab nations.
• Explanation that Morocco’s development based on sustainable energy is making good progress (‘target of 50% of energy production in renewable form by 2030’). The development of solar energy is reducing its reliance on fossil fuels and its associated market failure.
• Synthesis/evaluation: This might include discussion of Morocco’s HDI which is below the average for all Arab nations (‘of 0.699 for Arab States’). In economic performance, in terms of Morocco’s current account deficit is 4.2% of GDP compared to 2.9% in all Arab nations which suggests the current account situation might hinder its future development. It is also worth considering Morocco’s gender inequality with women achieving a less equitable development outcomes than men (‘GII value of 0.482 which puts it 119th out of the 160 countries’).
• The use of appropriate information from the text and data to support the argument developed. Examples are shown by the underlined sections above.

Applying the levels of response criteria.

 Marks Level descriptor 0-3 The response indicates little understanding of the demands of the question, uses little relevant theory and no use of the text/data. 4-6 The response indicates some understanding of the demands of the question, limited use of  relevant theory, limited evaluation and limited use of the text/data. 7-9 The response indicates an understanding of the demands of the question, uses some relevant theory, some evaluation and some use of the text/data. 10-12 The response indicates an understanding of the demands of the question, uses relevant theory appropriately, evaluation is used appropriately and the use of the text/data is applied appropriately. 13-15 The response indicates an understanding of the demands of the question, uses relevant theory effectively, evaluation is used effectively and use of the text/data is applied effectively.
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