DP Economics
Question 21N.3.HL.TZ0.l
| Date | November 2021 | Marks available | [Maximum mark: 4] | Reference code | 21N.3.HL.TZ0.l |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | l | Adapted from | N/A |
l.
[Maximum mark: 4]
21N.3.HL.TZ0.l
Quinoa is a great source of protein and is thus considered a “super food”. As a result, the demand for quinoa in advanced economies has lately been rising very fast while global supply has not changed. A small country called Proteinland gets 80 % of its export revenues from exporting quinoa to advanced economies.
Explain how the increase in world demand for quinoa would likely affect the current account balance of Proteinland.
[4]
Markscheme
Examiners report
Although candidates generally grasped the issue, many found it difficult to explain clearly and earn full marks. A number of scripts argued that the PED would be significant (and so the current account could worsen) whereas this is not the case following an increase in demand.
