DP Economics
Question 20N.3.HL.TZ0.b.i
| Date | November 2020 | Marks available | [Maximum mark: 2] | Reference code | 20N.3.HL.TZ0.b.i |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | State | Question number | b.i | Adapted from | N/A |
b.i.
[Maximum mark: 2]
20N.3.HL.TZ0.b.i
Figure 5 illustrates the year-on-year changes in Mexico’s spending on imports of goods and services between 2008 and 2017.
[Source: The World Bank 2019: World Development Indicators Licenced under CC BY 4.0
https://creativecommons.org/licenses/by/4.0/.]
Using Figure 5, state two likely causes for the change in Mexico’s spending on imports of goods and services in 2009.
[2]
Markscheme
Award [1] for each valid reason up to a maximum of [2]:
- fall in Mexican GDP or national income OR lower domestic inflation
- depreciation of the Mexican peso
- appreciation of the Mexican peso AND PED less than one
- increase in tariff or non-tariff barriers or quotas imposed on imports by Mexico OR subsidies to domestic Mexican producers
- lower consumer/business confidence
- any other valid reason.
Examiners report
Some students read the graph incorrectly and responded on the basis of an increase in import spending in 2009. Most, however, were able to provide two causes of the fall in import spending.
