IG经济考D是何种体验？
请讨论如果IG经济考了D是否会对整体经济造成负面影响。
It might be harmful as students may lose confidence and feel depressed, increasing violence rate around the campus. Teachers may receive lower bonuses, followed by reduced consumption during the summer, and ultimately slow down economic growth. Schools, influenced by unsatisfying grades, may find it hard to recruit students with strong backgrounds, hence a decline in revenues, lower profits and reduced investments in the long run…
It might be beneficial as students realized they need to spend more time on IG econ, so more test-prep books and tutoring courses might be sold, increasing consumption and boosting the economy. Schools and exam institutions may offer more chances for students to retake the exam, resulting in higher revenues. Some students might actually be satisfied with grade D as they assumed to get an even lower grade. They may celebrate this by increasing consumption.
好啦，考前给大家开个一本正经的玩笑，但是Discussion题的套路大家都get了吧，正反两面，均需3-4个论点和拓展。Paper 2考试在即，给大家总结下Section B Data and structured questions答题技巧和要点：
1. 注意command words：
Define 给出定义并举例，一般2分
Identify简明指出，不需要解释和拓展，一般2分
Explain 给出要点并加以解释和举例，一般2-4分
Analyse 分析与解释，要比explain更详细些，或讨论的点更多，一般4-6分
Discuss/Evaluate/Assess/Examine/To what extent 讨论正反两方面，各为一段，每段最好能有三个论点，最后可加上一两句conclusion，使结构完整。一般6-8分
2. 答案中需应用到经济术语和相关知识点，光靠常识和蹩脚的英语会使你的分数大打折扣。
3. 仔细读题，注意每个单词，比如讨论的是auto industry，或范围是in your country，需要给出针对性的答案，太general的回答会被扣分。
4. 遇到计算最好写出公式和过程，考试可以带计算器。
5. 解释中如需要画图的，画完一定要检查是否横纵坐标、线、交点坐标、移动箭头都标示了，少标会扣分。
下面我们拿2016 summer paper 22作为样卷做个分析。
Data question 1 (原题太长，为节约篇幅大家可在真题集中查看)
(a) Using information from the extract, identify two indicators of improved living standards in Indonesia. [2]
分析：定位到第四段，找出印尼生活水平提高的两个指标：a rise in incomes/purchasing power; improved medical care注意不能原文照抄，需要用自己的话简单转述。Identify题不需要花费太多笔墨，留出时间给后面的大题。
Sample answer:
There was a rise in average income between 2013 and 2014, and an increase in doctors per head, indicating an improvement in medical care.
(b) Explain whether the extract suggests the demand for chocolate is price-elastic or price-inelastic in developed countries. [2]
分析：要求判断对巧克力的需求是price elastic还是inelastic。复习下PED的影响因素：more substitutes, more elastic；longer decision time, more elastic；luxury goods are more elastic than necessities; brand loyalty and habits, inelastic。根据原文“chocolate is addictive”可判断price inelastic. 此题只有2分，只需简单解释。
Sample answer:
It is price-inelastic as it is addictive for many people.
(c) Using information from the extract, explain two reasons why cocoa bean farmers do not use much capital equipment. [4]
分析：不用大量capital equipment一般都是小规模生产，或labor-intensive。根据原文第二、三、四段，找出原因： “small farms”, “low income per head”, “labor intensive”，写出任意两点加解释即可。
ample answer:
Cocoa bean farmers don’t use much capital equipment because most of the farms are small-sized and labor-intensive, which means it’s impractical or unnecessary to use much capital equipment for mass production; also, due to low incomes of farmers, they can’t afford much capital equipment.
(d) Calculate the rate of inflation in Indonesia in 2014. [3]
分析：此题要求计算通货膨胀率，在第四段中可找到CPI数据，根据CPI的百分比变化算出inflation rate。注意写出计算过程（答案错但过程正确有分），可用计算器。
Sample answer：(115.2-108)/108=6.67%
(e) Analyze two benefits of specialization referred to in the extract. [4]
分析：此题先解释specialization，根据原文第二第三段中的信息 “supplying good quality cocoa beans” “increased output”来分析说明。总结下specialization的好处：increase in efficiency/productivity/more output; economies of scale/lower costs; improve international competitiveness…
Sample answer:
Specialization means a country can focus on what it is best at producing, and this will increase efficiency and productivity of producing cocoa beans in those countries. Incomes of farmers will increase due to the increased output. Also, a country can gain a good reputation by producing high quality cocoa beans and this will help improve their international competitiveness.
(f) Discuss whether the price of chocolate is likely to increase in the future. [5]
分析：需讨论正反两面。价格的变化是由supply和demand的变动引起的。复习下影响demand的因素：Income, trend, advertising, consumer confidence, prices of substitutes and complements… 影响supply的因素： Costs, technology, subsidies and taxes, business confidence…文中提到新兴国家需求增加，但可可豆的生产遇到问题，这是可能导致价格上涨的原因，但同时人们健康意识提升，部分需求减少，同时巧克力的高利润会吸引更多生产商进入市场，所以价格不一定下降。
Sample answer:
The price of chocolate is likely to increase in the future, as there’s a large increase in demand from emerging countries, and a reduced supply in cocoa beans, as farms experience supply problems like lack of young workers, pests and diseases of crops. Also, firms may raise prices because of market power or inelastic demand.
The price of chocolate is not likely to increase in the future, as demand might decrease due to health concerns. More producers may enter the market to chase profit, leading to an increase in supply. Or new producing technology may be introduced to increase supply significantly, and firms may merge to take advantages of economies of scale, leading to lower costs and more output.
注意：此题也可以画图辅助分析，但一定要有对图像的解释，比如Demand increased causing a rise in price and quantity demanded.
(g) Using information from the extract, explain what is likely to be the main goal of chocolate producers. [4]
分析：复习下goals of firms: profit maximization, sales maximization, increasing market share, survival, reputation and image, etc. 根据最后一段信息”increasing the gap between revenue and costs” “keep their shareholders happy”可知profit maximization是主要目的。
Sample answer:
The main goal of chocolate producers are profit maximization, as producers want to increase the difference between revenue and costs by charging a higher price on consumers and keep the price they pay to cocoa bean farmers low; and to satisfy shareholders by having a good return on investments.
(h) Discuss whether free trade always benefits producers. [6]
分析：此题要讨论自由贸易是否总是对生产商有好处。注意围绕生产商讨论，不要写成对整个经济的影响。正方论点: “increased sales/economies of scale”, “cheaper, quality raw material”, “new ideas and technology”, 反方论点:“international competitors”, “high costs of raw materials”, “dumping”.
Sample answer:
Free trade might benefit producers because increased demand from foreign markets helps producers to expand production and take advantage of economies of scale. Producers can also import cheaper and high quality raw materials from abroad, lowering their production costs. With more communications and exchanges with the outside world, new ideas and technology might be introduced and may lower costs in the long run.
Free trade might not benefit producers as they will face more competition. If they are not competitive at prices and quality, they may soon go out of business or need government support. Also, if there’s inflation in the countries they import from, production costs will rise. Lastly, if there’s dumping from other countries, producers are unable to compete and may soon shut down.
Structured questions
(限于篇幅，本文选了考生选择较多的2,3,4题)
2.
(a) Giving an example, define “a sales tax”. [2]
分析：给出定义并举例说明。定义题每年都会考，大家可以把历年考过的定义整理出来强化记忆。
Sample answer:
An indirect tax levied on goods and services, e.g. VAT, GST
(b) Explain the difference between private costs and social costs. [4]
分析：给出定义并加以区分。Private costs= social costs - external costs
Sample answer：
Private costs are costs borne by those consuming and producing the product, such as purchasing price, or costs of raw materials. Private costs=social costs-external costs.
Social costs are the total costs to society, and it equals private costs plus external costs.
(c) Using a demand and supply diagram, analyze the effect of imposing a tax on fizzy drinks. [6]
分析：加税会使supply curve往左移动。画图一定要注意标出横纵坐标、线、点。图像画完后要解释下为什么supply往左移动，带来什么结果。6分题中4分画图2分解释。
Sample answer：
An indirect tax is an extra cost on firms. The supply curve will shift to the left, raising the equilibrium price and lowering the quantity.
(d) Discuss whether a country’s economy would be harmed if multinational companies moved out. [8]
分析：要求讨论如果跨国公司搬离后经济是否会受到负面影响。正方论点（有负面影响）：increase in unemployment, decrease in economic growth, lose tax revenue, less variety of products, current account position may worsen… 反方论点（有正面影响）：MNC depleting resources, domestic firms can expand, not much employment in MNC, not much tax revenue from MNC… 很多时候反方观点就是逐一推翻正方观点。最后可总结下在什么样的情况下总体影响会是负面的，使结构完整。
Sample answer：
The economy might be harmed if MNC moved out, as workers might lose jobs and causing a decrease in incomes and GDP. A lower GDP means government will receive lower tax revenues and may have to reduce spending in certain areas, e.g. education and health care. For consumers, less variety of products may be available to them, reducing consumer surplus. Also, the current account position may worsen, as the MNC may have contributed to exports.
However, MNC may have been depleting the country’s resources, which will reduce its ability to grow in the future. And with the leave of MNC, there’s more space for domestic firms to grow and expand, to satisfy the demand that had previously supplied by MNC. Also, MNC may have been sending profits home and so tax revenue from profits may not fall significantly.
If the country is a developing country with a large population, the negative effects might outweigh positive effects.
3.
(a) Identify two government economic aims. [2]
分析：送分题，答不出来要面壁思过。总结下government economic aims: economic growth, price stability, low unemployment, redistribution of income, balance of payments stability.
Sample answer:
Low unemployment and price stability.
(b) Explain two reasons why someone may be of working age but not in the labor force. [4]
分析：注意labor force的定义，指有意愿并有能力工作的人，包含了在职人群和失业人群两部分。
Sample answer：
Labor force means people who are willing and able to work. A homemaker is not in the labor force because he/she may want to stay at home to look after children. A person who’s sick or disabled, lacking the ability to work, is not in the labor either.
(c) Analyze what may cause an increase in a country’s labor force. [6]
分析：导致labor force 增加的原因可能有高出生率，低死亡率，退休年龄延迟，移民，职场女性增加等。6分题要求写出三点外加解释。
Sample answer:
Labor force in a country may increase due to high birth rate and low death rate, increasing the natural population growth rate. An increase in the retirement age may result in more seniors staying in the labor force. Net immigration is also a contributing factor as most of the immigrants are between 20-50 years old, with ability to work.
(d)Discuss whether an economy will benefit from having a younger labor force. [8]
分析：正方论点：more productive; in good health condition; quick to learn; occupationally mobile; geographically mobile… 反方论点：less experienced, require training, less reliable and high labor turnover rate…注意使用经济专业词汇，应用所学知识点。仅靠常识回答得分较低。
Sample answer:
An economy will benefit from having a younger labor force as they are generally more productive and willing to work extra hours, causing an increase in output. Also, young people are quick to learn and more adaptable to new ideas and technology, so this will reduce training costs for firms. Many young workers are occupationally and geographically mobile, which means they are flexible in switching jobs and relocation, hence structural unemployment will be reduced.
However, since young workers are less experienced and lack skills, firms may experience lower productivity, and training costs may be high. Besides, young workers may be less reliable, resulting in low output and low quality products.
4.
(a) Define “capital-intensive”. [2]
分析：2分定义题，直接给出定义。
Sample answer:
It's a production method that uses a large proportion of capital relative to other factors of production, such as the production process used in auto industry.
(b) Explain two characteristics of perfect competition. [4]
分析：复习下perfect competition的特点：Lots of buyers and sellers; homogeneous product; no barriers to entry and exit; normal profit in the long run; perfect knowledge 写出两点并加以解释。
Sample answer:
There are lots of buyers and sellers, making each firm a price taker, i.e. no market power to influence price. There are no barriers to entry and exit, resulting in normal profit in the long run.
(c) Analyze two internal diseconomies of scale that a large firm may experience. [6]
分析：先解释diseconomies of scale, 然后给出两种类型加以阐述。总结下主要的internal diseconomies of scale类型: Managerial diseconomies; communication diseconomies; labor diseconomies (demotivated workers) 6分题写两点，每点解释要更详细。
Sample answer:
Diseconomies of scale means as a firm gets too large, the average costs start to increase. One reason is managerial diseconomies, resulted from more layers of management and slows decision making. Another one is labor diseconomies, i.e. workers feel less appreciated in a large firm and become demotivated, reducing labor productivity.
(d) Discuss whether consumers would benefit from an increase in imports. [8]
分析：注意此题需围绕consumer受到的影响来回答，不要讨论到producers或者the whole economy。正方论点：Consume products not produced domestically; increased variety of choices; lower prices and high quality; 反方论点：imports may be demerit goods; price increase in the long run; quality decrease in the long run
Sample answer:
Consumers would benefit from an increase in imports as they’ll be able to consume goods and services that are not produced in their own country, due to differences in climate and resources. They may also have more choices from differentiated products, e.g. products with higher quality and more functions. Many imported products have lower prices due to abundant resources, lower labor costs, economies of scale, etc.
Consumers might not get benefits because imports may drive domestic firms out of business and this may increase prices in the long run. Also, foreign firms may dominate the market and have monopoly power, causing prices to rise and quantity to fall in the long run. Lastly, some imports might be demerit products that are harmful to consumers’ health, such as cigarettes and alcohol, and the government should impose tariffs or other trade restrictions.
